THE CHALLENGE OF WEALTH:Jewish Business Ethics

Meir Tamari

Abstract: Jewish business ethics in Israel addresses two major sources ofeconomic immorality—unbounded desire and fear of economic uncer-tainty—through enforcement and spiritual education. Business is seenas a path to sanctity, when time is set apart for religious study, wealth isseen as originating from God, the vulnerable are protected againstfraud and theft, charity is seen as an obligation, and mercy towardsdebtors is tempered by justice.

Introduction

The Jewish perspective on business ethics deals with the two major sources of eco-nomic immorality—^unbounded desire and the fear of economic uncertainty. The

evil inherent in greed is obvious, however, without desire no human economic activ-ity would be possible. Judaism comes therefore to train or educate the unboundeddesire (Yetzer Harah) for wealth, so that market activities and patterns of consump-tion operate within a God given morality. In our fear of uncertainty regarding markettrends, political changes, our personal health, etc., we seek justifiably to protect our-selves through insurance, investment and savings. Moreover, this same fear of neverhaving enough to face the future, also leads to seeking protection through theft, fraud,white collar crime and exploitation. These immoral forms of achieving economicsecurity are countered by Judaism's concept of the economics of enough.

A. Conceptual Framework

In Judaism, as in all socio-religious movements, economic activities give rise tobasic religious and moral problems which have to be solved in some fashion. Broadlyspeaking, these problems fall into two major categories which come to define both thescope of economic activity and the moral legitimacy of such activity:

1. The problem of allocation of time between economic and religious acts. The sta-tus of business activities vr* a vis the demands of Judaism, which require individuals tospend time in prayer, study and in performing meritorious deeds, instead of in businessor economic activity (it's the only religion that uses these as fundamental categories).

2. The problem of controlling desire and preventing economic evil. The creationof economic goods, their accumulation and their distribution, are essential for theexistence of mankind. However, because the search for wealth is fostered by greedand envy, it often results in injustice, theft and even bloodshed.

©1997. Business Ethics Quarterly, Volume 7. Issue 1. ISSN 1052-150X. pp. 45-56

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Both of these factors, unbounded desire, and the fear of economic uncertainty, aredealt with within the Jewish legal system and are affected by the spiritual develop-ment that flows from the study of biblical commentary, rabbinical literature and thelives of both scholars and ordinary people throughout the ages.

B. A Brief Overview of Source Materials from a Traditional Jewish Perspective

Traditionally, the legal system and the homiletical literature are based on theDivine Revelation of the Mosaic Code and on the equally authoritative Oral Law.This Oral Law is not a commentary on the written Torah, but an application of thatLaw. The first written form of the Oral Law was the Mishnah, a codex written in theLand of Israel in about 250 C.E. These opinions, together with the continued discus-sion, were later incorporated in the Babylonian Talmud and in the Jerusalem Talmud,sealed some 200-225 years later.

Rabbinic rulings, and continued study in all the countries of the Jewish Diaspora,created a ramified legal and spiritual literature codified as binding first byMaimonides (Egypt, Uth century), later by Yechiel ben Asher (Spain, 13th century)and lastly in the Shulch^ Anikh of Josef Karo (Safed, 16th century). The ShulchanArukh together with the gloss written by Moshe Isserless (Poland, 17th century) topresent the decision of the rabbis of Ashkenaz (Europe) became the accepted codexthroughout the Jewish world. In more modem times three similar codices were pro-duced in order to include later decisions: Shulchan Arukh of Ba'al HaTanya, by thefounder of Lubavitch Chassidism; Arukh HaShulchan and the Mishnah B'rurah.

This traditionally authoritative literature is of vital importance to the discussion ofa Jewish perspective to business ethics as indeed it is to all aspects of life, since thebehavior both of the individual and of Jewish communities is not simply left to pri-vate choices or to individual standards of morality or to the influences of thepervading ethical mores.

There is a widespread conception that the framework provided by Judaism isexcessively legalistic. However, in reality, what is presented is a consistent balancebetw^n justice and mercy and between spirituality and materialism. Without thisbalance there would be soulless legalism that could either create an unjust society oraltematively a rarefied spiritualism without practical everyday implications.

C. Jewish Law and Business

In this paper I bave tried to limit myself to the traditional Jewish system whichrelies upon the sources outlined above.

At the outset, therefore, we have to consider Judaism's answer to the two problemsposed by economic activity. It should be noted that Jews have lived under variouseconomic systems. What is involved in the Jewish answer is not a specific econom-ic system but a spiritual and moral framework for business.

1. Allocation of time between religious and economic needsSince time is a limited resource, one has to ration the time available between satisfy-ing economic needs and religious ones. The most obvious constraints in Judaism onthe time available for economic activity, are those periods in the year when such activ-ity is not permissible under religious law. The Jewish calendar is replete with days

THE CHALLENGE OF WEALTH 47

when complete abstinence from labor, commerce or aay other economic activity ismandatory as a major form of observance.

There is, however, a far more basic and far-reaching limitation on the timeinvolved in economic activity that is peculiar to Judaism. This is the obligation ofreligious study. This obligation binds everyone, not only priests, rabbis and scholars.Every individual, irrespective of age, knowledge, or economic status, is required todevote time to learning, so that one is obligated to study day and night until one'sdying day. All other activities, economic or leisure that detract from the amount oftime devoted to learning, are considered wasteful and a sign of a serious religiousmisconduct and need to be minimized.

God, according to this view, would provide the necessities of life and the male Jewwould devote his life to study, i However, the majority opinion of Jewish thinkersrejected this oversimplified view and so Maimonides ruled that a man should dividehis time equally into three sections, one devoted to the study of Torah, one devoted toearning a living and the third for eating and sleeping, etc.2 It is clear, therefore, thatdevoting time to study is an essential tenet of Judaism even if it is a limitation on eco-nomic activity.

This obligation has led, in Jewish history, to the search for such occupations aswould allow men to devote time to study either because they did not require muchtime, or because they could be followed in areas where there were concentrations ofJews which made such study feasible. Maimonides recommends, for example, that aman should go into commerce, rather than fanning, because commerce allows farmore time for the study of Torah.3 This, however, should not be construed as rabbinicpreference for certain types of business organization or economic activities, over andbeyond their implications for time available for Torah study. Basically, Judaism isneutral to such questions as to whether one should be self employed or an employee,establish large national or even multi-national corporations or partnerships, or enterinto professions and services as opposed to trading or manufacturing or farming. It isnot, however, neutral to the religious and spiritual problems involved, so that all ofthese enterprises are subject to halakhic (Jewish legal) and spiritual restraints. In allof them, the individual has to consider which is the optimum for Torah study.Actually this is simply a specific example of Judaism's insistence that more econom-ic goods and activity are not always better than less, this makes it possible for the Jewto divert time to study despite the "loss" involved.

2. Economic activity-^ path to greed or a path to sanctity?The Divine blueprint for the world is such that economic wants and needs are satis-fied through human endeavor in normal non-miraculous ways. So economic wantsor desires are treated by Judaism in exactly the same way as all the other basichuman tendencies. They are not something which can or have to be destroyed, butrather tendencies that people can and must sanctify, and themselves be sanctifiedthereby. This attitude is a reflection of a human partnership with the Deity, a con-tinuation of the process of Creation. In such a partnership, the holy sparks whichreside in us can transform the ordinary everyday acts into communion with God.4Therefore, earning and keeping of economic assets is considered by Judaism as legit-imate, permissible and beneficial, yet restricted and sanctified by the observance ofGod's revealed Commandments

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The observance of God's Commandments in Judaism leads not to some etherealother world, but to an abundance of material goods.5 Starvation, poverty and droughtare primarily depicted as divine punishments and the effects of a divine anger.^ AGod-fearing person is characterized as one whose flocks and orchards bear their fruitin season and produce a bounty of goods.'' The Land of Israel, the divinely definedgeographic area for the Jews to live in and create a nation of priests, is not a bleaJ^desert, but a land flowing with milk and honey. The Bible does not exhort againstengaging in economic activities nor in the accumulation of material goods. There areno accusing fingers pointed at those engaged in normal economic activities for theearning of material goods. There are no echoes of asceticism nor ofthe cleansing andspiritual effects of poverty. It is fitting therefore, that the founders of Judaism, thePatriarchs Avraham, Isaac and Jacob, were all wealthy men.

Despite the legitimacy of economic activity and enjoyment of material goods,Judaism does not allow the unregulated accumulation of such goods nor the unre-stricted use thereof. Both are very strictly limited and channeled by Judaism, both onan individual and group basis.

The desire for wealth is the most powerful of all human needs and desires; there isnever enough and nobody gets too old or weak to free themselves firom it. The rab-bis put it succinctly. Referring to sex, they taught the less one has, the less one wants,the more one has, the more is needed. Money, however— the less one has, the moreone wants, but the more one has, the more one also wants. This makes the sphere ofeconomic activity a possible major vehicle for achieving sanctity; the greatest moralchallenge yet also the greatest opportunity. Well over a hundred of the 613Commandments mentioned in the Torah as obligatory, are related to educating andmaking economic activity follow moral regulations. The Sages of the Talmud said,"Those who are desirous of achieving sainthood, let them live according to the trac-tates of the Talmud dealing with commerce and finance.''^ The Sages called theMishnaic tractates dealing with civil, business and criminal law, "the Book ofRedemption."

3. "The earth is the Lord's and the fullness thereof. "^Both limiting desire and providing security against uncertainty depend on an individ-ual's or on a society's view of the source and purpose of wealth. The most importantpremise behind the whole Jewish economic framework is that all wealth originatesfrom God alone. God in His infinite mercy makes sufficient economic resourcesavailable to humanity. Hence all human ownership is temporary. Holders of wealthare not possessors but stewards. Since Judaism is a communal, rather than an indi-vidual-oriented religion, society at all levels is a partner in fact, even if not legally so,in this wealth. Perhaps two biblical institutions can exemplify this triumvirate ofGod, individual owner and society.

a. The Sabbatical Year:In the Sabbatical Year, the land is to lie fallow and man is to eat only of the naturalproduce of the ground. There is to be no ploughing, sowing, etc., and having to relyonly on the natural increase of untilled ground, not only in the seventh year, but in theeighth as well. Over and above this, it required to renounce legitimate legal owner-ship over private land in favor of society. Anyone may take what grows on the land.Thus, one is periodically reminded that God is the real source and owner of all wealth.

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The sabbatical year provides an outer limit to the acquisitive impulse; one cannotbecome richer than God wills. Since all wealth is given by the Deity, it therefore hasto be used according to the Divine Will.io Immoral and unethical economic behavioris precluded. Furthermore, the belief that God is the source of all wealth justifies tax-ation for social goods. Wealth is meant to provide for the needs of the poor, the weak,the addicted, the aged as well as satisfying the needs of the person who amassed it.Coercion to provide for this exists in Judaism alongside philanthropy.

2. First Fruits:All human beings feel the specialness of a farmer's crop, one's first business deal,one's first profit, one's first asset and even less tangible achievements. In ancientJudaism before eating new crops, men and women were obligated to present the firstfruits of each year, to the priest, offering God a share in recognition of what God hadprovided. An account of this ceremony is still read on the festival of shavout. Theconfession that accompanied this offering recounted how God redeemed the peoplefrom slavery, brought them into a land of their own. and bestowed upon them fertili-ty, crops and the first fruits. The farmer or the entrepreneur, was in the final analysisalmost irrelevant to the creation of the wealth."

Our dependence on the grace of God for our economic welfare and the obligationsresulting from that grace are translated in Judaism into legal forms and binding dailypractices enforceable by rabbinic courts, which not only punish perpetrators or pre-vent economic immorality but also enforce communal economic policy. Religiousdefinitions have been created as to what is permissible and what is forbidden in themarketplace. Regulations were promulgated governing how and when and where thepermitted acts might be done.

D. Limiting Greed and Minimizing Insecurity

1. Protecting the Vulnerable:

"And thou shall do that which is righteous and just in the sight of the Lord..."^-

Theft or Fraud

No society or economy can persist long without rules which limit theft and fraud.It is easy, therefore, to understand the numerous Jewish injunctions against economiccrime and dishonest means of earning a living, as a matter of accepted human wis-dom, i Mainly, however, Judaism has viewed these concepts not merely as socialwisdom but as part of a God-given moral, social order. 14 Halakhic regulations con-sider honesty in economics an absolute rule; not only beneficial, but obligatory, evenwhen disadvantageous to transactors. Theft goes far beyond the damage done to theinjured party, or to the relative economic status of the parties concemed. Even anitem of economic insignificance may not be stolen. i5 In the final analysis theft isproscribed because of the spiritual damage done to the perpetrator: there are no vic-timless crimes.

Theft is complexly defined: it is prohibited to put good fruit on top of bad fruit ina store or brush an animal in order to make him look better than he really is.ie Thereis an extensive code for the repair and maintenance of scales and cleaning thereof.

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developed so that the misrepresentation should not defraud the customer, i One is notallowed to "steal" another's opinion by creating a false impression regarding goods orservices. Parties in the market may be made aware of prices, quality and availabilityof goods and services. Further, goods may be presented to the best advantage.However, even if there is no intent to defraud misrepresentation is forbidden and iscause for a legal cancellation of the trmisaction. Full disclosure of physical defects orfinancial obligations is mandatory.'* For example, halakha would forbid advertisingthat suggests status, sexuality or romance, which in reality have no relationship to thegoods or services being sold.

Protection of the Weak

Weak and powerless members of society have to be protected in their economicactivities. They might not have a full knowledge of the law, they might not have thefunds or the knowledge necessary to obtain their rights, and they might be afraid ofpushing for such rights, even where these are known. So the widow and the stranger,the poor and the orphan are singled out for protection by Jewish law. This protectionis not an issue of sexism or racism or any stigma. It is simply a recognition that gen-erally speaking these people are easily exploited and justice demands preventing orrectifying such exploitation. One is not permitted to oppress them, to defraud themeither in words or deeds, or permitted to deal harshly with them in a way that exploitstheir vulnerable status, i

All consumers are entitled to some protection. The rabbinic sages use the biblicalinjunction, "Thou shall not put a stumbling block in the path of the blind,"20 to forbidgiving advice which did not disclose the interest of the adviser. For example: "Youshall not tell another to sell a donkey and buy a field when you wish to buy a donkeyand sell a field." This also precludes providing through legal transactions, articles orservices physically or morally detrimental to the buyer.21 Professions such as coun-seling, brokering, accounting, advertising, etc., as well as the legal trading inweapons, cigarettes, drugs or pornographic literature, would find severe restraintsplaced upon them by the acceptance of the rabbinic law which flow from this conceptof protecting the weak. For example, weapons may not be sold to Jews or non-Jews,wherever there is cause to believe that the weapons will be used for aggression oroppression rather than self-defense. People are not permitted to harm their own bod-ies or health, so that the selling of cigarettes would be forbidden. Jewish Law doesnot accept the Roman concept of, "Let the buyer beware," neither does it accept theassumption of free and full flow of infonnation in the marketplace. Instead it placesthe onus for preventing misrepresentation, damage and loss solely on the party pos-sessing full knowledge. As an example, a vendor is assumed to guarantee the goodshe sells, even without an explicit statement to that effect, and the injured party canclaim redress for fraud, irrespective of the time that has elapsed or of the value of thetransaction.22 This role applies not only to physical goods, but also to services andfinancial reporting. Furthermore, the obligation of full disclosure is placed both onbuyer and seller. Not only is one forbidden to cover defects, one is obligated to dis-close them.

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Environmental Protection

A person is not pemiitted to use property in a way which will cause harm or dodamage to another person's body or property.23 In addition one is obligated to pre-vent damage. So it is not permitted to cause damage intending to then pay for it, inthose cases where prevention would he more expensive than compensation. Certainindustries and professions through the pollution, noise and human traffic associatedwith them steal another's quiet, health, peace and fresh air, and therefore, are forbid-den or restricted to certain areas.

When zoning laws or environmental restrictions conflict with economic develop-ment, the issue goes beyond mere protection of the property rights of others. It isnecessary to adjudicate between the benefits society enjoys from the employment andincreased wealth resulting from economic growth and the environmental damage suf-fered. It is this conflict which is in reality the environmental problem facing allsocieties. Judaism views human economic development as positive, and nature issubservient to this. However, within the legitimate but restricted framework for eco-nomic activity described above, the growth will be of necessity limited. The needs offuture generations will have to be considered; after all humankind are the guardiansof God's world. Waste of natural resources, whether privately owned or nationallyowned is forbidden. The rabbis compared it to idolatry, since it rejected the Divineorigin of those resources. Nobody is allowed to place themselves in danger and weare commanded to take great care to avoid physical and medical danger. So industrieswhich cause health problems must either perfect technologies to prevent the problemor may not be operable in a Jewish system. One solution to the environmental issueTraditional Judaism cannot accept, is population control in order to limit the pressureon economic resources. It is interesting to note that two thousand years ago the rab-bis taught that the people of the generation of the flood sought out birth control, andnon-procreative forms of sex to protect themselves against environmental damage.

2. Charity:"And thy brother shall live with thee..."2i

Not only is wealth to be earned in a moral way, but society—^both collectively and asindividuals—has rights with regard to private property. Judaism not only accepts theidea of private property rights, but teaches that any system rejecting it, is contrary tohuman nature. A system without property rights is either not viable or gives rise tocorruption. At the same time, Judaism cannot accept the concept that people are thesole masters of their property. The rabbis of the Talmud, reflecting the thoughtprocess which was already hundreds of years old, claimed that the sin of Sodom wasits inability to share its wealth with strangers, the weak and the poor.25 Society hasby right a stake or share in the property of the "haves," since it was given to them par-tially for the purpose of assisting others. It is the fulfillment of the stewardshipconcept of wealth discussed previously. Paying for charitable and social purposes isan obligation enforceable by rabbinic courts and a fiscal obligation which societycannot evade. It is no coincidence that the Hebrew word of "charity" flows from thesame root as that of "justice." What is given to the poor is not an act of mercy orrighteousness, nor is it an entitlement, but an act of justice, devolving on the posses-

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sor of wealth. Since the community has an obligation to provide food, shelter andbasic economic goods for the needy, it has a moral right and duty to tax its membersfor this purpose. In line with this duty, it may have to regulate markets, prices andcompetition, to protect the interest of its weakest members. Judaism does not distin-guish between deserving and non-deserving poor. Its protection extends even to thosesuffering through their own faults.

This sharing requirement includes non-monetary acts as well, since not all humanproblems and suffering can be solved economically. Recipients of charity may not betreated callously or insulted, so the Jewish charitable system nurtures respect and con-sideration. For example, the biblical gift of Pe'ah, the comer of the field leftunharvested for gleaners, was made available at different times of the day for the con-venience of early risers, the women with children, and the elderly who usually onlyarrived later in the day. Charity in Judaism is not given but done, involving more thanthe mere transfer of wealth. So too, one is not allowed to verbally oppress the con-vert, the widow, the orphan or the stranger by reminding them of their specialsituation. A creditor is not allowed to intrude on the privacy of the debtor even whenhe is collecting his debts. Neither is he allowed to take as security items essential forthe sustenance of the debtor or for the earning of a livelihood.^* Furthermore, thehalakhah produced the concept of "beyond the boundary," obliging us to waive, wher-ever possible, our legal rights. This concept educates and trains Jews to forego,voluntarily, economic gains which are legally theirs, in order to allow weak or lessermembers of society to maintain themselves. For example, many famous rabbinic per-sonalities closed their stores after a few hours of trading so as to prevent gross unfaircompetition against their less learned competitors. So too, trespassing that benefitspeople, yet which does not harm the owner of the property, is quite legal.

The duties and obligations imposed by the code towards one's neighbors gobeyond the scope of charity to include acts of righteousness, acts understood inJewish thought to be given to those who are undeserving of them.

There is, an additional injunction to grant interest-free loans; separate from theobligation to give charity. It is an act of righteousness, granted both to the rich per-son who is temporarily in financial straits and to the poor person trying to improve hisor her economic situation.^?

Another example of such acts of righteousness is the law that a person whose landand property adjoins that of another person, automatically has the right of first refusalshould it be offered for sale (concept of "Bar-Metzrah"). Since the purchase is to beat the market price, the seller suffers no loss. Yet at the same time, the buyer gains,since the enlargement of his property is often an economic consideration. This princi-ple of "one loses nothing and the other gains,"28 dictates that where one may do so atno loss to oneself one is obligated to consider the benefit and convenience of others.

So a system is built introducing the demands of charity and welfare in its widestsense into the Jewish economic philosophy. These demands often lead to a deliberatedistortion of the market mechanism^s by the introduction of price control, byrestraints on competition which are to the detriment of society and by limitations onconsumption in order to achieve modesty in standards of living. In many communi-ties these limitations on consumption were linked to the status of each individual as atax payer.

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3. The legal system as codified ethicsIt seems to be more correct to talk about permitted and forbidden actions in

Judaism than ethics. Since Jewish law derives from Divine Revelation, this law mustbe moral and just. Indeed, a cardinal tenet of Judaism is the centrality of justice as anattribute of God. His justice is displayed in His conduct of the world and its activepursuit is enjoined on mankind. The establishment of a legal system and courts of lawis one of the Seven Noachide Laws seen in Judaism as binding on all peoples; theJewish system being an extended system obligatory only on Jews. Most authoritiesrule that all the laws of monetary matters apply to Jews and non-Jews alike.3o Thisdivine justice knows no class difference, favoring neither rich or powerful, nor dis-torting itself for the poor or the weak. So judges are not allowed to fear the wealthynor favor the poor or succumb to bribery in all its varied and ingenious forms.

The centrality of justice provides the stable legal system which is an essential pre-requisite for any economic activity. There is, however, far more than just such a legalframework contained in the Jewish concept of justice in the economic world. Thisjustice is perfectly reciprocal. Creditors have an obligation to lend interest-freemoney; but the debtor has an obligation to repay the debt and not to waste the loansgiven to him. Employees have the right to receive prompt payment of their wages,they also have an obligation from the same source, to perform their work properly.^i

There is, however, a clear demarcation between justice, on the one hand, and mercyand charity, on the other, which has important implications for the modern welfarestate. This demarcation would propose charity with all its negative connotations ofshame or means tests, providing only essential and minimalist assistance. There is noprovision of any sort of "average" standard of living. This demarcation militatesagainst the creation of a welfare mentality and reduces fraud. The demarcation wouldalso work against taxation as a means of achieving an egalitarian society. The ethicalissues in bankruptcy can perhaps best serve to illustrate this demarcation.

Consider the case of a debtor who cannot repay his interest-free loan. One couldargue that since the lender is presumably wealthier, he should forego his claim as a cred-itor. This would be an act of charity and so would seem to be the desired way to act.

Such charity, however, distorts justice. It ignores the obligations of the debtor andfoists onto the creditor, society's moral and social obligation, simply because he com-mitted a praiseworthy act by making the interest-free loan in the first place. As a resultof this, the moral basis of the debtor and creditor alike are distorted. The borrower onthe one hand could tend to make his investments casually and "wastefully," knowingthat he could simply be reinforcing the uneconomic behavior of the borrower. This isa pattern often found not only in welfare states but also in economies where subsidizedpublic sector funds are made available to entrepreneurs in order to achieve socio-polit-ical aims. The main creditor, the State, is often prepared to waive its debts or assumethe debts of the defaulting corporations. This leads to uneconomic investments andtheir perpetuation and also to a willful and immoral management of public funds.

Protection of the debtor at the expense of the creditors is also the philosophy behindChapter 11 in the USA and the leniency introduced in bankruptcy law in England.

The halakhic view is that the debtor has to meet his obhgation through the sale bythe rabbinic courts of his property.^^ Now the debtor has become poor. Sometimesother people, such as employees, suffer when the firm becomes insolvent, and some-

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times other creditors are unable to sustain the loss of the debtor firm and so also col-lapse. Who is to shoulder this new social responsibility? The halakhah places thison the community as an obligation in which the creditor shares as a member.

It has been pointed out to the author, that in effect, the shifting of the obligationfrom the creditors to society means that that obligation will be unfilled, resulting inthe human suffering and waste associated with bankruptcy and unemployment.However, from a Jewish perspective, as has been pointed out, society has real eco-nomic rights in private property. Taxes and economic policy to assist theunemployed, bankrupt or even the displaced business man, are not only permissible,but even obligatory on the community. Entrepreneurs and corporations are requiredas acts of charity to assist in the provision of interest-free loans for the establishmentof new enterprises by the unemployed or the bankrupt debtor, the provision of infor-mation regarding alternative job possibilities and retraining, etc. Beyond this charity,however, the obligation of society remains.

It is important to note that the Jewish legal system keeps a clear demarcationbetween crimes against property and capital crimes. In the legal institutions ofancient Judaism, murder, adultery and idolatry were punishable by death, without anypossibility of a monetary settlement. On the other hand, no prisons existed fordebtors, and no jail sentences were imposed for theft of embezzlement; punishmentwas limited to restitution and fines by the rabbinic court. Coital punishment, ban-ishment or bodily mutilation for theft were never recognized. While private propertyhas rights, which must be equitably and strongly enforced, they were never consid-ered sacred or holy. 3

There are cases where economic damage cannot be compensated for through thelegal system, either for technical reasons or because of lack of evidence.Nevertheless, a moral society still requires some protection against injustice. Thereare, therefore, actions that halakhah forbids even though tbere is no legal redress.There is a concept of "not liable, but forbidden." So, even if damage from nuclearwaste were to be suffered only a thousand years later, when courts could not levy apunishment, such damage is still forbidden. Rabbinic courts have the right to preventsuch damage since they can force a Jew to desist from behavior forbidden by theTorah. Almost all white-collar crime is conducted secretly and sometimes even with-in the loopholes of the law. However, God is all-seeing and all-knowing; there are,therefore, no secret crimes. The same God, moreover, is siire to punish even thatwhich human courts cannot or will not.

Perhaps the best expression of this balance is the treatment of unfulfilled contracts.In those cases where financial loss is incurred as a result of one party defaulting on acontract, written or verbal, the rabbinic courts force the defaulter to make restitutionfor the loss. There is, however, a spiritual dimension to such default in that one hasnot kept one's word, considered in Judaism to be a lack of faith in God, who witnessesall our actions and speech. This spiritual problem exists even where no financial lossis incurred as a result of the default. Therefore, the rabbis instituted a ceremony inthe synagogue that clearly demonstrated public disapproval of non-fulfillment of con-tracts. In the presence of his family, the defaulter stood in the synagogue while thecourt pronounced, "He, God who demanded payment for the sins from the Generationof the Flood, from the Builders of the Tower of Babel and from the people of Sodom,

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will sure hold responsible one who does not keep his word." This ceremony was onlyone of the ways in which public disapproval of economic immorality is expressed.This disapproval was a major force in preventing unethical business behavior as itdemonstrates society's moral parameters.

E. Conclusion

The two main sources of economic immorality may be considered to be greed andthe fear of uncertainty. Traditional Judaism provides both a legal system and a spiri-tual education minimizing the immoral effects of both of these causes.Economic activity is legitimate for it is essential for the existence of human beings.This activity is limited both by the Sabbath and Festivals, but also by the obligationto study Torah; all these leave less time for economic activity. Greed is limited by aramified and enforceable code of divinely revealed law, providing a normative eco-nomic morality. Such a morality depends for its spiritual underpinnings on the ideathat all wealth originates with God, who grants it to mankind as trustees, yet at thesame time provides for all their needs. Belief in this divine providence enables peo-ple to operate within conditions of morality while acknowledgment of the divinesource of wealth forbids unethical means of earning that wealth.

The existence of a divinely revealed law predicates a ramified network of forbid-den—and permitted—actions, rather than the concept of the ethical and unethical.Such actions preclude fraud in all its forms and protects the ignorant, weak, poor ordisadvantaged. At the same time, there exists a spiritual dimension that prohibits cer-tain acts and insists that God punishes even those actions that human courts are unableor unwilling to punish.

References (no ital indicated on hard copy)

'Talmud Bavli, B'rachot 35b.ZMishnah Torah, Hilchot De'ot Chapter 5; Hilchot Talmud Torah Chapter 1; Maimonides's

Letter to his son.3Mishnah Torah, Hilchot De'ot.tNachmanides's Commentary on the Torah, Leviticus Chapter 19; S. R. Hirsch, Horeb,

Section V, 480.5Genesis 49:25-26; Leviticus 26:3-13; Deuteronomy 28:1-13.^Deuteronomy 28:16-53.Tsalms 128.STalmud Bavli, Baba Bathra 175b.^Psalms 24.lOExodus 23:11; Leviticus 25:2-5; Commentary of Sepher HaChinuch and K'lei Yakar."Sepher HaChinuch, Mitzvah 506.i^Deuteronomy 6:18.i^Maimomdes, Sh'moneh P'rakim, Chapter 6.i4Exodus 20; Commentary ofthe Malbim.l4isshulchan Arukh Hilchot G'neivah, Section 348; also Mishnah Baba Bathra, Chapter 10,

Mishnah 9.i^Shulchan Arukh Hilchot Ona'ah, Section 228.

56 BUSINESS ETHICS QUARTERLY

i7Mishnah Baba Bathra, Chapter 5, Mishnah 11; also Shulchan Arukh Hilchot Ona'ah 231.Baba Metziah, Chapter 6, Mishnah 11; also Shulchan Arukh Hilchot Ona'ah 228.3:4-9; Leviticus 19:9-10, 33-34; Leviticus 25:25; Exodus 22:20-21; Talmud Bavli,

Gitten 52a.zoLeviticus 19:14.2iCommentary of Rashi on above verse, also Mishnah, Avoda Zarah, Chapter 1, Mishnah 6.22Talmud Bavli, Baba Metzia 14a.

Baba Kama, Chapter 2, Mishnah 6.25:36.

25Malbim on Genesis 18:20; also Talmud Ketuboth 103a and Baba Bathra 12b.^SExodus 22:25-27; Deuteronomy 24:10-14.27Sepher HaChinuch, Mitzvah 66; Shulchan Arukh 97:1.28Mishnah Torah, Hilchot Sh'cheinim, Chapter 12:4, 13,14.

. Tamari, "Competition, Prices and Profits," Bar Ilan University (Hebrew)., Genesis 34:13.

Arukh, Hilchot Ona'ah, Section 227.32Shulchan AruMi 97:23.331. Herzog, "The Main Institutions of Jewish Law," Vol. 1, Law of Property.