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Religion, Confucian Ethics, and Multinational Management

Religion, Confucian Ethics, and Multinational Management. Chapter 3, pages 95 - 100. The Four Largest Religions in the World. Christianity Islam Hinduism Buddhism. Islam. Based on the teachings of Mohammed Five pillars of Islam Submission to the will of Allah (God) Prayer 5 times a day

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Religion, Confucian Ethics, and Multinational Management

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  1. Religion, Confucian Ethics,and Multinational Management Chapter 3, pages 95 - 100

  2. The Four Largest Religionsin the World • Christianity • Islam • Hinduism • Buddhism

  3. Islam • Based on the teachings of Mohammed • Five pillars of Islam • Submission to the will of Allah (God) • Prayer 5 times a day • Almsgiving (charitable donations) • Fasting from sunrise to sunset during Ramadan • Pilgrimage to Mecca • Islamic law is called Shari'ah • Traditional gender roles are observed in some countries.

  4. Monotheistic Religions • Monotheistic religions are based on a belief in one God. • The monotheistic religions are Judaism, Christianity, and Islam. • Muslims believe that the Jewish prophets and Jesus were prophets of Allah. Muslims believe that Mohammed was the last and greatest prophet.

  5. Areas with aLarge Percentage of Muslims • The Middle East • North Africa • Central Asia • Central and West Africa • South Asia: Pakistan, Bangladesh • Southeast Asia: Indonesia, Malaysia • Europe: Albania, Kosovo province of Serbia, Bosnia, and some parts of Russia

  6. Implications of Islamfor Business • Businesses are often expected to make charitable contributions. • Business should not exploit people. • A company should treat employees, investors, and customers fairly. • It is wrong to charge interest for lending money. • Islamic banks do not charge interest but make their profits in other ways. • Some countries have both regular banks and Islamic banks.

  7. How Islamic Banks Can Make Money without Charging Interest • Contracts are negotiated in advance. • The bank can go into partnership with a business or an entrepreneur. • The bank gets a share of the earnings from the partnership • If the partnership is not profitable, the bank makes nothing and can lose its capital. • The bank may or may not have a role in managing the partnership.

  8. How Islamic Banks Can Make Money without Charging Interest (2) • The bank can buy a productive asset and leases it to another business. The lease payments are high enough to let the bank make a profit. • The bank can buy inventory or a productive asset and sell it to the company that needs it. Payment is made at a specified later date. The payment is higher than the price that the bank paid for the asset.

  9. Hinduism • Based on the ancient scriptures of India • People are encouraged to pursue Brahman, the ultimate reality and truth, and "the sacred power that pervades all things". • To find Brahman, look into your atma (soul), and live according to dharma, or righteous principles. • If you live a righteous life, you will be reincarnated to a higher caste after you die. • If you think only about making a lot of money, it is hard to find Brahman.

  10. Hinduism (2) • Caste system – based on the social position of a person's ancestors • Religious teachers (Brahmans) • Rulers, warriors, and government officials • Merchants, farmers, businessmen • Craftsmen, laborers, and servants Each of these has many sub-castes. • The Dalits, once called untouchables, are below all the castes. • India's Constitution forbids discrimination on the basis of caste.

  11. Hinduism (3) • Hindu beliefs include ethical principles by which people should live. • Do your duty. • Respect your parents. • In family businesses, the oldest male in the family makes major decisions. • Countries with large populations of Hindus include India, Malaysia, Nepal, and Sri Lanka. • Multinational companies have been able to find conscientious, creative workers in India.

  12. Buddhism • Based on the teachings of Siddhartha Gautama (Buddha) • Cravings and desires produce suffering. The way to reduce suffering is to reduce your desire. • Emphasizes ethical behavior and compassion • Avoid behavior that hurts other people • Encourages initiative, persistence, and hard work • Achieve a balance between work, family life, and spiritual life. • Practiced mainly in Southeast Asia, Japan, and China

  13. The Confucian Ethic • Originated by K'ung Fu Tzu (Confucius) • Five cardinal relationships • Ruler and subject • Father and son • Husband and wife • Older brother and younger brother • Friend and friend • The older or more powerful person has a duty to guide and to help the younger or less powerful person. The younger or less powerful person has a duty to obey and to be loyal.

  14. The Confucian Ethic (2) • People should advance in their careers by meritorious performance. • Confucius taught that people should humane and virtuous. • People should be taught how to behave by ritual and by example. • Law and punishment were not emphasized.

  15. The Confucian Ethic and Business • Confucian thought has influenced the culture of Japan, China, Taiwan, Korea, and Singapore. • Relationships and connections (Chinese: guanxi) are important for doing business in those countries. In Japan, employees are often expected to socialize with their work mates for several hours after the work day. • Traditionally, the company has a greater duty to "take care of" employees. • Companies seldom fire employees for doing poor work. An effort is made to give the employee another job that he can do or arrange a job for him elsewhere. • Employees are expected to show loyalty by staying with the company.

  16. Religion and Culture in Japan • Traditionally, Japanese have followed more than one religious tradition. • Shinto is an indigenous Japanese religion. Shinto religious practice involves visiting shrines to pay respect to deceased ancestors, important people, and traditional gods. • Most Japanese are also Buddhists. • Many Japanese have a Shinto wedding and a Buddhist funeral. • Confucian ethical principles are widely accepted in Japan.

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