ETHICS

By:Jay Parekh(138)
Rohan Raut (141)
Vivek Rawat(142)
Vaibhav Shah(152)
Kunal Parikh(164)

Corporate Ethics &

Religious Belief
Systems

Ethics
In simple words it defines The rules and principles that define right
and wrong conduct
Ethics refers to well-founded standards of right and wrong that
prescribe what humans ought to do.

Business Ethics
It is the study of standards of business behavior which promote
human welfare and the good.
Ethics in the workplaces helps ensure that when leaders and
managers are struggling in times of crises and confusion, they retain
a strong moral compass.

Religion and Business Ethics

Religions, through the values they embody, often build the basis for
what is considered right and wrong
Religion produces both formal and informal norms and provides
people with a freedom/constraint duality by prescribing behaviors
within some acceptable boundaries and such norms, values, and
beliefs are often codified into a religious code such as the Gita,Bible
or the Koran
Such values often provide guides for what are considered ethical
behaviors for most of the worlds religions

Importance
It is important for employers to recognise that employees do not leave
their religious beliefs at the entrance to their place of work
It is the aim of board of directors to create and maintain ethical work
culture throughout the organisation
They have to be aware that those from different religious traditions
may have dissimilar ways of behaving and these may be in conflict
with currently drafted corporate policy and guideline

Islam and Business:

Conflict and Collaboration

Islam and business

Conditions are set on business behaviour, it must not
Be greedy
Seek monopoly or manipulate the market
Exploit the poor
Trade in forbidden goods and services

Alcohol / drugs / tobacco

Gambling
Deal in pork products
Engage in usury

Islam and charity

Charitable giving is one of the five pillars of Islam

It binds the community together
Zakat tax is the means of re-distribution
2.5% of capital assets above a minimum payable once a year
Usually collected by governments e.g Saudi Arabia
Nowadays left to individual believer
Vast majority of firms are family firms
The role of corporate giving as opposed to individual giving is
unclear and needs definition 1% of profits is a minimum

Islamic Banking

Famous Jewish banks prospered

Islam prohibits charging of interest
Banks to work as partner in a clients business
The Indian Connection
India has second largest population in the world
Muslims in India do not use banking sector
India has substantial need for inward investment
UAE has meagre 1% share of FDI in India, so permitting Islamic
Finance can fulfill a sizeable portion of Indias investment needs.

Judaism
Judaism originated in the Middle East over 3500 years ago
According to information published by The Jewish People Policy
Planning Institute, there were around 13.9 million Jewish people in
the world in 2013, most residing in the USA and Israel.
Jews believe that God appointed the Jews to be his chosen people in
order to set an example of holiness and ethical behavior to the world.

Kabbalat Shabbat Jewish holy day

Kabbalat (Reception of the Shabbat) Shabbat (related to Hebrew
verb cease, rest)
Every week religious Jews observe the Sabbath, the Jewish holy day,
and keep its laws and customs.
Sabbath starts a few minutes before sunset on Friday and runs until
an hour after sunset on Saturday, so it lasts about 25 hours.
The idea of a day of rest comes from the Bible story of the Creation:
God rested from creating the universe on the seventh day of that first
week, so Jews rest from work on the Sabbath.

Kabbalat Shabbat Jewish holy day

Shabbat is a time with no television, no rushing to the demands of the
telephone or a busy work schedule.
People don't think about work or other stressful things.
In order to avoid work and to ensure that the Sabbath is special, all
activities like shopping, cleaning, and cooking for the Sabbath must
be finished before sunset on Friday.

Case study Malden Mills

December 11, 1995 Massive fire completely destroyed three
buildings at Malden Mills in Lawrence
$300 million insurance money
Company president Aaron Feuerstein announced that he would
rebuild in Lawrence, and he promised to keep his employees on the
payroll during the time it would take to reconstruct the plant
Feuerstein, a devout Orthodox Jew, explained that he drew on Jewish
tradition when faced with the crisis: When all is moral chaos, this is
the time for you to be mensch Where there is no one to be
mensch, a responsible leader, then you be one

Case study Malden Mills

$25 million to keep his employees on the payroll
$100 million in addition to the insurance settlement to build a textile
factory
Feuerstein struggled to maintain family control of the company. He
needed to raise $92 million by August of 2003 to satisfy his creditors
We insist the business must be profitable, but we also insist a
business must have responsibility for its workers, for the community
and the environment.
He lost control of the company in July of 2004

Impact of Hinduism on businesses

Hinduism is a cluster of religious traditions that evolved in India

between 3,000 and 1,500 B.C.

One of the central doctrines of Hinduism is Karma

Five yamas mentioned in yogasutras are

1. Ahimsa
2. Satya
3. Asteya
4. Brahmacarya
5. Aparigraha
.

Positive attitude towards businesses & wealth, yet it is not the

ultimate goal

Impact of Hinduism on businesses

Deities are regarded as legal entities who can fight their case through
the trustees or managing board
Many devotees in India keep deities as partners in their businesses
Many businesses are in names of deities & gods (Although
businesses arent named after god if they deal in items which are
prohibited in religion)

Impact of Hinduism on businesses

People with high religious morale dont invest in shares which are into
tobacco, cigarettes, liquor and non-veg hotels
Eg.
1. ENAM securities offloaded shares of RIL when it acquired stake in
EIH Ltd.
2. Reliance retail ditched its plans to enter into chicken restaurant
business

Impact of Hinduism on businesses

Impact on work places

Separate veg cafeteria
Holidays
Prayers

Companies like McD, KFC, Pizza hut had to change their menu in
India

Christianity and Business:

Christianity and business

Some important principles outlined in the Old Testament and the New
Testament of the Bible
One should not desire to get anothers goods or labour for less than
its worth
One must not try to obtain a good price for his own wares by extortion
If buying from the poor, purchaser must pay the full price that the
goods are worth to him

Christianity and Companies

Several companies are openly in support of Christianity
Incorporate Christian ethics related practices:
Examples:

Providing cards printed with Bible quotes with every meal on board

Keeping closed on Sundays for employees to spend time with family

and attend prayers at Church

Fashion retail outlet

Founded by Chang family
Owners are devout Christians
Print John 3:16 on the bottom of their shopping bags
Provoked criticism when it released a slew of religious-themed
tees emblazoned with slogans such as:
"Jesus You
"Holy
"Three Words to Live by: Prayer, faith, and trust

Conclusion
Like it or not, good or bad but religion highly impacts our society & it impacts
the ways in which businesses are run