Religion, Confucian Ethics, and Multinational Management

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.