Showing posts with label business ethics. Show all posts
Showing posts with label business ethics. Show all posts

Saturday, April 5, 2025

Hindu Dharmic Leadership

At Harvard’s Bhukti Yoga Conference in 2025, Ed Anobah spoke on dharma (right-acting) leadership as a means of making progress in solving societal problems using Hinduism’s spiritual tradition of bhukti (devotionalism).  Anobah based his talk on the book, Leadership for an Age of Higher Consciousness by D. T. Swami. In the Bhagavad-Gita, Krishna says that what great people do, other people follow. What constitutes healthy, impactful leadership? The ideal leader in Hinduism is also a great sage, like Plato’s notion of a philosopher king. Leadership that deals wholistically with the human condition by exemplifies the character of a leader, which does not mean that only highly educated persons can or should be leaders. Rather, “everyone is a leader,” potentially, and “we are all leading our own life.” Each of us is a leader potentially for other people on the interpersonal level. Each of us can inspire other people. Anobah claimed that certain universal principles of leadership can apply across the board. I submit that this view is vulnerable to being too utopian when it is applied in the business world. Being realistic as to possible practical difficulties and even limitations in applying dharmic leadership in business (and government) is advisable. Even there being different metaphysical assumptions can get in the way, practically speaking, as compassionate leadership runs up against the profit-motive in business. 


The full essay is at "Hindu Dharmic Leadership." 

Sunday, March 16, 2025

Hinduism Applied to Business

Applying a religion such as Hinduism to business is laudatory. Undercutting any benefits of doing so, however, is the advocation of religious principles that are so unrealistic in the business world that they undercut the credibility of the project itself. John D. Rockefeller was a Baptist who taught Sunday school at his church even as he pushed competitors out of business who refused to be bought out by Rockefeller’s refining monopoly, Standard Oil Company. To be sure, after retiring, he gave away about half of his $800 million (1913 dollars), but he did not claim that his personal generosity justified his earlier restraint of trade as a monopolist. Rather, he claimed to be more of a “Christ figure” as a monopolist than he was next as a philanthropist. In my study on Rockefeller, I concluded that he was delusional, yet to some extent well-intended, given the destructive competition that was ravaging small businesses in the refining industry during the 1860s. Rockefeller thought of his giant as saving the otherwise presumably drowning competitors, but Jesus in the Gospels does not drown people who are unwilling to be converted. Clearly, the application of religion to business can be abused, including in being much too idealistic, even utopian, and in being used to justify egregious economic tactics and even greed itself.

Although G.D. Birla, a Hindu industrialist when India was trying to achieve political and economic independence from Britain, sought to integrate religious principles both in the establishment and running of his steel company and his later philanthropy, whereas most Christian titans at the time in the West saw their religious principles as pertaining only to charitable giving after having become rich, the application of Vedic knowledge to business is not without its own drawbacks. Specifically, I contend that lofty sounding principles such as bhakti and dharma can sail right over the real world of business, the former being too high to make a dent in the latter. It does the profane no good if the sacred treats the profane as “fly-over territory” between two coasts.

Speaking at a Bhakti Yoga conference hosted by Harvard University in March, 2025, Rajeev Srivastava, a Hindu entrepreneur, advocated applying the Vedic teachings of being a custodian of wealth and giving back as a form of service, including in making donations to charities. That is, he was asserting that the Vedic teaching of trusteeship includes giving back to society as an integral part of business.  Doing business with a purpose that includes profit, but without greed, is key. Srivastava stressed having a spiritual teacher who can teach a business practitioner how to serve. Presumably serving enables a practitioner to include profitability in one’s business purposes and yet without being motivated by greed.

It is ironic, therefore, that business practitioners who can control pride and greed and are motivated by service to God and humanity and seek mentoring by spiritual teachers are, according to Srivastava, more likely to succeed in work tasks and to have profitable businesses. For example, demonstrating integrity and character facilitates raising capital from investors because it is important to them to be able to trust the people who manage their investments through business strategy and operations.  The following terms are relevant: loka-sangraham means having profit as an outcome but not as the purpose; loka-saudhnyam is wealth as entrusted (trustee-oriented); loka-saumitram is the establishment of relationships of love with all stakeholders; sakhya-priti is caring for stakeholders; and jaget-priti is caring for the planet (i.e., accepting the limits of finite natural resources). Admittedly, the notion that managers of a business would come to love stakeholders, which includes employee union heads and government regulators, as well as the media, is far-fetched.

Once in a business seminar on theory construction, I proposed a theory that includes love. Looking back on the assignment and my presentation years later, I felt utterly embarrassed for having come up with such a ridiculous theory of business; the marketing professor had been very charitable towards me in not checking me into a psyche ward so anti-psychotic medication could be applied. I doubt it would have helped. So, I have some “skin in the game” in being critical when religion applied to business goes too far, for I have committed that very sin.

In applying Hinduism, even jaget-priti seems utterly unrealistic. At the very least, even ethical managers of a business naturally are oriented to profitability; even those who are not greedy are oriented, or compartmentalized, to the practice of management, and thus to its mind-frame.  In fact, being oriented to a firm’s profitability is part of the fiduciary responsibility of a management. Of course, if a majority of the ownership of a business, whether private or publicly-owned, wants to use its wealth to care for, and even love stakeholders, fiduciary duty (assuming the rights of minority stockholders are not impaired) can include diverting resources, attention, and even profits to stakeholder groups. In short, applying religion to the business world should not be so unrealistic that the only real application is for marketing purposes. The term, servant leadership, is commonly bandied about for just such a purpose, as is corporate “social responsibility.”

Also speaking at the Bhakti Yoga conference, Prakash Govindan discussed the application of the business jargon, servant leadership, to Hinduism. He said that three terms apply. Dama is the finding inner balance (emotional mastery, inner resources are infinite); daya refers to the mood of compassion (ontological humility); and dana is the joy of giving. Finding inner balance is more realistic than loving and caring for stakeholders, and finding inner peace may actually result in greater compassion if inner security and stability naturally enable a person to feel compassion deeper and more often. Applying Bhakti Yoga to business practitioners, including CEOs, Govindan said that because “the material world and material life [which includes business] is like banging your head against the wall,” he tried silent meditation focused on his heartbeat. Out of that came an orientation to serve, in part to stay humble and not get entitled. It’s not about how much is given; rather, it is the intention that counts.

In Spiritual Leadership in Business (2017), I argue that by engaging in a regime of regular religious experience, whether in prayer, liturgy, or meditation, a manager may be more inclined to be compassionate at work, even in leading an organization. I reason that the enhanced sensitivity to the world, including suffering, happens naturally from engaging in prayer or meditation because yearning experientially in transcendence beyond the limits of human cognition, perception, and emotionality (sensibility) involves enhanced sensitivity. Even just the residue of it can stay with a person back in the world, meaning that one’s sensitivity generally, and including to other living beings, is greater than without having experienced religious transcendence. This application of spirituality (being practiced regularly) to business is much preferable to dogmatic preaching of religious tenets. In fact, regular religious experience may naturally result in that which the tenets intentionally prescribe. What happens automatically is, I submit, more reliable than what depends on intention. This is not to say, however, that regular religious practice will cause business managers to love stakeholders, but relations could improve by being naturally more sensitive to the other. Smoothing the rough edges rather than turning things upside-down in attempting to instill a utopian dream may be how religion can be relevant in the world of business. For to simply whitewash the profane with the sacred would make heaven a tautology.


Friday, January 11, 2019

Self-Delusion Enabled by Religion: Former U.S. House Minority Leader Tom Delay and Monopolist John D. Rockefeller

It is hardly news that religion, even one based on divine love reaching down to “love thy neighbor,” can be stretched or simply ignored as needed by the desires for power and money. When these two are both engaged, religious rationales may be attempted nonetheless. I have in mind here the cases of former U.S. House Majority Leader Tom DeLay (R-TX) and the monopolist John D. Rockefeller. Just in evoking their Christian faith to justify their sordid conduct in politics and business, respectively, these two men may be seen as astounding cases of the length to which adherents can go in using religion even in spite of obvious hypocrisy.
On January 10, 2011, Tom DeLay was sentenced to three years in prison on charges of money laundering and conspiracy to commit money laundering. He had used a political action committee to illegally send corporate donations to Texas House candidates in 2002. Prosecutors claimed the money had helped Republicans take control of the Texas House. That in turn enabled the Republican majority to push through a Delay-engineered congressional redistricting plan that sent more Texas Republicans to Congress in 2004, strengthening DeLay's political power. In the face of this charge, DeLay simply repeated his longstanding claim that he did nothing wrong. "I can't be remorseful for something I don't think I did," DeLay said in a 10-minute speech to the judge.[i] This statement is not unlike those of John D. Rockefeller, the founder of the monopoly Standard Oil, which was accused in the late nineteenth century of restraint of trade. For his part, Rockefeller saw himself as a Noah or Christ figure in that he was trying to save struggling refiners from ruin by buying them up.
Ida Tarbell, Rockefeller's chief critic, believed the titan was under a sort of self-delusion. For example, Tarbell, whose father was an oil producer who resisted Rockefeller's grasp, pointed out that the titan's "Christ-like" efforts to "save" drowning refiners included ironically drowning those who refused to come aboard Standard Oil. Did Noah kill any animals who refused to come on the ark? Did Christ drown any people who refused to be saved? Clearly not. Rockefeller's application of religion to his monopolization is thus suspect in terms of his actions. It is possible that Delay suffered from a similar rationalization or state of denial.
Just as Rockefeller, who attended Church more than once a week through his 90s insisted that things are right between him and his God, DeLay pointed to his faith in Jesus as, in effect, rendering the verdict nugatory in terms of what really mattered. To be sure, DeLay probably did view himself as innocent of criminal conduct. "This criminalization of politics is very dangerous" he charged, "It's dangerous to our system. Just because somebody disagrees with you they got to put you in jail, bankrupt you, destroy your family."[2]  Antithetically, Gary Cobb, the lead prosecutor, averred that DeLay had "put his principles, ideals and beliefs above the laws of Texas." Particularly when one's religious beliefs are invoked along with a criminal defense (i.e., that it was politics that was being criminalized), one should be on guard against the possibility of self-delusion. 
Both Rockefeller and DeLay had immense power, and their respective views of non-culpability bore on their use of power. The ends justifying the means rationale allows for a slippery slope, which in turn can enable delusion with regard to culpability. Of course, in DeLay's case, an investigator could have simply looked at the money exchanges and compare them to the law. According to The New York Times, "a jury determined that he conspired with two associates to use his Texas-based political action committee to send $190,000 in corporate money to an arm of the Washington-based Republican National Committee. The RNC then sent the same amount to seven Texas House candidates. Under Texas law, corporate money can't go directly to political campaigns."[3] Yet as clear as this sounds, it is surprising how divergent DeLay and Cobb were with respect to their respective interpretations. If we take the verdict as correct, we might find it troubling that DeLay not only denied any culpability after the verdict, but also went on to invoke his salubrious condition in virtue of his religious faith. Such an invocation can easily turn into a justification, with the result being that great wrongs, such as the Crusades, can be done in the name of a religion of love. Followers of Jesus, who says not to lift a sword, have done just that in droves through history. DeLay invoked his religious faith and yet acted like one of the money-changers in the Temple. Rockefeller drowned struggling rivals who refused to be bought by Standard Oil, the great “combination” that Rockefeller himself designed as an alternative to destructive competition. Clearly, religion can be manipulated or ignored by even its adherents. Yet it is also possible that religion itself, being pliable on account of the presence of interpretation, support or enable its role in hypocrisy.

For more on John D. Rockefeller's use (or exploitation?) of religion, see God's Gold, available at Amazon. 



1. James C. McKinley, “DeLay Sentenced to 3 Years in Conspiracy and Money-Laundering Case,” The New York Times, January 10, 2011.
2. Ibid.
3. Ibid.

Thursday, March 29, 2018

Is Greed Implicit in Christian Theology?

In Business Ethics for Dummies (p. 123), greed is defined as a basic desire for more. The authors posit a “reasonable greed,” which in business “fuels growth,” which in turn “creates jobs and adds value to a society [and] economy” (p. 124). The authors conclude that “in terms of this social and economic growth at least, greed is a good thing” (p. 124). This sounds like a partial affirmation of Gordon Gekko’s claim that “greed, for lack of a better word, is good” (Wall Street). As long as greed proffers good consequences—the greatest good for the greatest number—the desire for more is ethical, or “reasonable.”

In terms of Christianity even where the religious thought has allowed for profit-seeking and the holding of wealth (e.g., for the virtues of liberality and magnificence), greed itself has been excoriated as sin. That is to say, even though Christianity contains different takes on the relationship between wealth and greed, the religion has never approved of the desire for more.

Theologians have typically assumed that the fundamental desire for more is for lower goods, such as wealth, rather than for higher ones, such as God. Greed thus represents misordered concupiscence: the placing of a lower good over a higher one. Such greed is thus desire in excess to what the object deserves. According to Business Ethics for Dummies, the Merriam-Webster Dictionary defines greed as “a selfish and excessive desire for more of something than is needed” (p. 316). The desire is thus sordid in that it is selfish and excessive, regardless of the object being desired or any beneficial consequences for others.

Undoubtedly, the basic desire for more can be directed to many objects. According to Business Ethics for Dummies, people can be greedy “for power, status, influence, or anything else they desire in excess” (p. 316). One might ask whether a desire for God can possibly be selfish and in excess.

Augustine, for instance, writes of his yearning for God as though a lover pining after a beloved. His language evinces an obsession of sorts, hence possibly capable of excess. “You are my God, and I sigh for you day and night,” Augustine declares in Confessions (7.10.171). “You have sent forth fragrance, and I have drawn in my breath, and I pant after you. I have tasted you and I hunger and I thirst for you. You have touched me and I have burned for your peace” (Confessions, 10.27.254-55). If it is the limitless nature of the desire for more that is responsible for Christianity’s long-held aversion to greed, then what of Augustine’s sighing and burning for God?  If Augustine’s higher passion is akin to lust, is not selfishness and excess possible? Augustine’s more may be higher, but it is still more, and he wants the object without limit.

To be sure, God is without limit, being omnipotent and omniscient as well as omnipresent, so it could be argued that a desire for God can be unlimited without being excessive (given the nature of the object). If so, Augustine’s sublimated eros being directed to God can be carved out as an exception and labeled as “holy greed” to distinguish it from the commercial “reasonable greed” that issues in economic growth and jobs. The nature of the object and beneficial consequences are the respective justifiers of these two manifestations of greed. However, this path of carving out exceptions can lead to greed itself being deemed good in itself.

I contend that the desire for more is troubling even if the desire evinces a proclivity to vindicate more and more of itself. In being selfish and subject to excess, the desire for more can be said to resemble an addiction, regardless of the object and unintentional beneficial impacts on others.

In terms of excess, the desire innately sets aside any possible restraints such as a desire for equilibrium (e.g., “enough is enough!”). Furthermore, in being self-centered, the desire warps one’s perception to enable still more. For instance, something just ascertained is suddenly viewed as a given, and thus to be augmented rather than accepted as sufficient. If the amount gained had been a good deal, this is taken for granted as an even better deal is sought. Hence, the desire does not diminish out of a sense that enough has been gained. Lest a declining marginal utility arrest the desire in terms of consumption, still more is desired in terms of savings either because 1) you can never be certain that you won’t be able to use the still more or 2) the addiction to more is too captivating. The question is perhaps whether the human desire for more is itself subject to declining marginal utility as a motivation.  Does one become tired of feeling it or is it self-perpetuating?

Even though the desire is innate and self-perpetuating, it need not dominate a person’s motivation and behavior. I suspect that the key to setting aside the desire for still more is seeing it for what it is—that is, being able to recognize it as one is in its grip. A person noticing the cycle can instantly see that the good deal one has just achieved as sufficient. In other words, once the desire is recognized, a bracketing counter-motive can be applied. The promise of freedom from the otherwise all-consuming desire for more is superior to even “reasonable” and “holy” greed.  

Source:

Norman Bowie and Meg Schneider, Business Ethics for Dummies (Hoboken, NJ: Wiley, 2011).

Related book: God's Gold  The text goes through the history of Christian thought on how greed is related to wealth and profit-seeking, and proffers an explanation for why the historical shift was from anti-wealth to a pro-wealth dominant stance. 

An Interfaith Declaration of Business (Ethics)

Released in 1994, “An Interfaith Declaration: A Code of Ethics on International Business for Christians, Muslims, and Jews” is comprised of two parts: principles and guidelines. The four principles (justice, mutual respect/love, stewardship and honesty) are described predominantly in religious terms, devoid of any connection to business. In contrast, the guidelines invoke the principles in their ethical sense, devoid of any religious connotation. The disconnect in applying religious ethics to business is not merely in books; the heavenly and earthly cities are as though separated by a great ocean of time.

 Are these religions applicable to business?    Wikipedia

The full essay is at "An Interfaith Declaration of Business."

Source:


Related paper: "Religion in Strategic Leadership: A Positivistic, Normative/Theological and Strategic Analysis," Journal of Business Ethics (2005) 57: 221-239.

Related book: God's Gold  The text goes through the history of Christian thought on how greed is related to wealth and profit-seeking, and proffers an explanation for why the historical shift was from anti-wealth to a pro-wealth dominant stance. 

Tuesday, August 8, 2017

Christianity and “Social Capitalism”

The SEC charged Ephren Taylor with a fraudulent $11 million Ponzi scheme in April 2012. According to Reuters, “Taylor fraudulently sold $7 million of notes said to bear 12 percent to 20 percent annual interest rates, to fund small businesses such as laundries, juice bars and gas stations.” He “had conducted a multi-city ‘Building Wealth Tour’ in which he spoke to congregations” on the importance of “giving back.” He called himself a “social capitalist.” In actuality, he used the money on himself and his wife’s attempt to become a singer.

The full essay is at "Christianity and 'Social Capitalism'"


See: God's Gold, available in print and as an ebook at Amazon.

Source:
Jonathan Stempel, “SEC Charges Ephren Taylor II ForAllegedly Bilking Churchgoers In $11 Million Ponzi Scheme,” The Huffington Post, April 12, 2012.





Friday, June 9, 2017

Spiritual Leadership in Business: Transcending the Ethical

In this essay, I provide a synopsis of my booklet on spiritual leadership in business. In the text, I suggest that while it may convenient in the business world to conceptualize spiritual leadership as being essentially ethical in nature, this convenient tactic does not do justice to the distinctly religious basis and connotations of spirituality. By religion, I do not mean only theism, or even just organized religion (i.e., religious organizations); rather, I have in mind religious experience—whether through prayer, meditation, worship, or another means that is oriented to yearning beyond the limits of cognition, sentiment, and perception—as if an inherently limited human brain were nonetheless “hard-wired” for beyondness itself whether or not a transcendent religious object (e.g., a deity) exists. Rather than expunging spiritual from its native terrain and reconfiguring it to fit within a secular context as ethics, we can relate the religious sense of spirituality to the secular world of business with due deference to their respective natures rather than muddling them into something murky.[1]

The full essay is at "Spiritual Leadership in Business."


The booklet, Spiritual Leadership in Business: Transcending the Ethical, is available at Amazon in print and as an ebook.




1. By analogy, the notion that Jesus Christ is fully human and fully divine—a theory coined at the Council of Nicea in 325 C.E.—involves taking the human as human and the divine as divine rather than reconfiguring one term to suit the other. Just as one essence, or ousia, has a human element and a divine element, spiritual leadership can be reckoned as having a religious and a secular element. One essence can contain a notion of spirituality that is religious in nature and a theory of leadership that is been derived in a secular context. 

Monday, May 8, 2017

Spirituality as Distinctively Religious


To be at its fullest, the notion of spiritual leadership applied to business should not shirk the religious basis of spirituality to make it somehow more fitting to business-or a certain rendition of business. Many of Gilbert Fairholm’s descriptions of spirituality risk embalming spirituality in a secular tomb in keeping with the bias typically found in the business world against anything religious. Fortunately, some of his other characterizations of the term provide an alternative basis for an invigorated notion of spiritual leadership applied even in the business world.

Material from this essay has been incorporated into Spiritual Leadership in Business: Transcending the Ethical, which is available at Amazon in print and as an ebook. 

See The Essence of Leadership, which is available at Amazon in print and as an ebook. Taoist, Buddhist, and Judeo-Christian principles relevant to leadership comprise part two of the book. 







1. Gilbert W. Fairholm, Capturing the Heart of Leadership: Spirituality and Community in the New American Workplace (Westport, CT: Praeger, 1997).

Friday, October 3, 2014

Religion and Business Clash at a Church’s Food Pantry

The sacred and the profane are like oil and water—oil for anointing and water for cleaning. The viability or value of the sacred does not depend on denigrating that which is exogenous to it. In other words, praising the sacred does not require trashing the world. Being in the world but not of it does not imply that the world is necessarily bad. From this perspective, the sacred and profane can both be viewed as viable in their own rights, respectively. The inevitable distance that distinguishes them so starkly is breached only with great difficulty, even if pressed out of sheer practicality. For example, a theological interpretation undergirding a religious organization’s food pantry can clash with a business calculus such as would be held by an auditor pouring over the numbers and procedures. As theology and business enjoy their own, sui generis (i.e., of its own genus or type) bases of justifications or rationales, unraveling a clash can be notoriously difficult for want of a common denominator.

The full essay is at "Religion and Business Clash."


Thursday, August 28, 2014

Servant Leadership Christianized

Although servanthood is a very important biblical concept for leadership, according to Richard Higginson, the role of servant “is not reserved only for those who are leaders. Christians in general are “servants of God” and are expected to serve other people.”[1] Moreover, to be ethical in a servant style is not distinctly Christian; leaders who are not Christian can nonetheless operate as servants. The term servant does not in itself have a religious connotation. Yet under theological auspices, a distinctly theological sense of servant leadership can be understood and practiced. I contend that such servant leadership is something more than the notion that has been popularized.

The complete essay is at “Servant Leadership Christianized”



[1] Richard Higginson, Transforming Leadership: A Christian Approach to Management (SPEK: London, 1996), p. 48.

Tuesday, August 12, 2014

Religious Sources of Business Ethics: How Far Along Are We?

If Business Ethics for Dummies is any indication, the topic of religious sources for business ethics must have gained steam through the first decade of the twenty-first century. Increasing interest in such a topic in the midst of modernity is ironic, or counter-intuitive. For philosophers without any degrees in religion, the temptation might be to dilettante over to this topic in order to proffer an opinion. The result for the rest of us could well be a false sense of the extent of knowledge on the topic.
In Business Ethics for Dummies, Norman Bowie—a philosopher assisted by a journalist who has written other for Dummies books—discusses topics in several religions to demonstrate how they can be relevant to business ethics. With regard to Christianity, Bowie starts out on most solid ground in pointing to how Goldman Sachs has violated the Golden Rule. Specifically, the bank sold mortgage-based bonds (e.g. Timberwolf) that the bankers admitted internally were “crap” and shorted in proprietary trading even as Goldman sales people were selling the securities to clients. It is unlikely that the people at Goldman would have relished being misled on something they were sold.
In terms of the Ten Commandments, Bowie wonders whether it is for Jews only. He concludes that not stealing, lying, or envying others’ possessions is consistent with business ethics. It is questionable how useful such a platitude might be to actual business practitioners.
On the topic of Biblical teachings on wealth, Bowie opines that “the ethical teachings in the [Bible] can and should be consistent with normal business practices” (p. 27). To get to this conclusion, he suggests that Abraham established the concept of private property by purchasing a burial site for his wife, Sarah. Bowie even suggests that the exchanged evinces the essence of all business transactions.
Regarding the rich man getting through the eye of the needle, Bowie discounts the typical conclusion that Jesus was pointing to a dichotomy between being wealthy and being saved by interpreting Jesus’ statement—“With God all things are possible”—as meaning that the rich can indeed enter the Kingdom of God. Bowie will only admit that the Bible “discourages greed and the excessive accumulation of wealth and encourages generosity” (p. 28). The philosopher sidesteps the tension or outright contradiction between the rich man getting through the eye of the needle (a view that was salient in early Christianity) and the virtues of liberality and magnificence (which were salient in the Renaissance). Such tension, which is discussed in my book, God's Gold, assumes that the two virtues require continued wealth (to be given away in on-going philanthropy) rather than simply involving a once-and-for-all getting rid of all of one’s possessions before following Christ. That the “eye of the needle” story and the Christian virtues requiring wealth have each been dominant at different points in the history of Christian thought is missed by Bowie’s blanket statement on a definitive Biblical position on greed, excessive wealth, and generosity.
With regard to polytheistic religions, including Buddhism and Hinduism, Bowie claims that because they “believe in more than one god,” they “place more emphasis on individual actions and thoughts in the quest for enlightenment or elevation to the next plane of existence” (p. 32). Would not having more gods to call on reduce the reliance on the human’s actions and thoughts? I can find no credible basis for Bowie’s assertion.
In terms of Buddhism in particular, Bowie brackets Theravada Buddhism wherein only poor monks can be enlightened and concludes that for the lay Buddhists having wealth sans attachment is consistent with enlightenment. However, by including hoarding in attachment, Bowie implicates wealth itself.
Turning to Hinduism, Bowie contends that the religion is relevant in being reduced to its non-dualist (i.e., monist) Advaita Vedanta school’s “all in one, one in all” principle.  “Hinduism teaches that all beings and things are both themselves and all other beings and things. Thus, the rationale for treating others well is really one of self-interest; if you hurt someone else, you hurt yourself. Because everything is made of the same essence, you are everything in the world and everything in the world is you” (p. 33). Bowie concludes that business and profit-making are not considered bad according to Hindu teachings.
Bowie succumbs to a fallacy, however, in assuming that something else is me just because it has the same substance. A cat and I am both made out of Brahman, but this is not to say that I am the cat or that I’m hurt when the cat is hurt. In other words, everything in the world is made of the same stuff, but that does not mean that the specific entity that is me extends to the world. There is a difference between saying that everything is made of the same thing and that everything is me. Compassion in Hinduism stems from the former rather than the latter. Furthermore, Bowie over-extends the business term of self-interest in applying it to his misconception of the Hindu monist teaching that Atman (soul) is Brahman.
Generally speaking, uncovering possible religious sources of business ethics cannot be made easier by re-casting those sources in business terms, nor should the task be compromised by glossing over religious teachings from the exterior vantage-point of philosophy.
To be sure, dilettantism is not unusual in the field of business ethics. Management scholars tend to become philosophers (sometimes even without a single course in ethical theory) and both management and philosophy scholars may become political scientists as the field of business & government (e.g. regulation) is typically lumped in with business ethics. Furthermore, sociology is often “picked up” on the cuff as social norms are salient in the field of business & society (e.g., CSR), which is also lumped in with business ethics. It is as if getting a doctorate in management, philosophy, political science, or sociology (and now religious studies) gives the holder a pass in any of these other disciplines under the cover of “multidisciplinary.” The proof is in the pudding, however, as evinced in the shoddy writing of “scholars” who venture too far from their native fauna. Perhaps even more than intelligence, self-restraint is necessary for solid scholarship.

Source:

Norman Bowie and Meg Schneider, Business Ethics for Dummies (New York: Wiley, 2011).

See Skip Worden, God's Gold, Christianized Ethical Leadership, and Spiritual Leadership in Business, both available at Amazon.

Saturday, February 22, 2014

Pope Francis on Factory Wages in Bangladesh: A Theological Basis of Corporate Social Responsibility

If what Pope Francis said during a private Mass in April 2013 takes hold as a theme in his papacy, the corporate social responsibility (CSR) movement will have gained a new public advocate on the world stage. Besides the fact that the pope is the spiritual leader to well over a billion Roman Catholics around the world, his remarks are significant in the that they proffer theology as an alternative foundation for CSR. As with the more established bases, theology applied to CSR has its advantages and shortcomings.

Scholars of CSR have long debated the salience of ethical principles as the basis of the movement/theory, as against the alternative basis in cultural norms. On the ethics side, the word responsibility is said to connote ought (i.e., prescriptive duty) rationally applied to conduct. To whit, businesses ought to be more responsible.

However, basis of CSR could also be a desired shift in corporate values and norms toward  a greater degree of fit with extant social norms held societally. In other words, the CSR agenda can be characterized as moving one set of values/norms closer to a more widely-held set. While prescriptive in nature--wayward corporate norms should be changed--the emphasis here is on norms and values that already exist rather than ought to exist. The goal is to get corporate norms to reflect, or at least not be in conflict with societal norms so the corporation will not suffer a loss in reputational capital and long-term profit from being out of sync with society.

Put even more academically, the question is whether CSR is founded in philosophy (ethics being a sub-discipline) or sociology/anthropology. If Pope Francis’s theological rationale can be reckoned as an alternative, theology or religious studies (i.e., widening out to other religions)  could be reconized as CSR's basic academic displine. That is to say, CSR could be studied by adding study of theology (or religious studies) to management. The opportunity cost would be the foregone study in ethics and sociology. As there is a cost, it is worthwhile to investigate the pope's rationale, including its context.

The pope’s homiletical comments came in the wake of a major industrial accident in India. On April 24, 2013 in Bangladesh, India, an eight-story building containing (among other things) five garment factories collapsed. As of this writing, more than 1100 people had already been found dead in the rubble. This made the accident the worst of its kind in history.

It is as if the sheer magnitude of the disaster shook people's confidence in the power of the ethical principle of duty and relevant societal norms to resist or even push back the countervailing force of greed fueled by the ubiquitous profit-motive. In other words, the standing of human nature itself took a hit. It makes sense then that a religious leader would preach an alternative basis that obviates the new-found lack of balance in human nature by transcending it and even our very realm of existence.

I now turn to the pope’s rationale to consider how his theological approach might apply to the five manufacturers in the disaster and the clothing retailers that buy the output. Furthermore, a bit can be said about relevant public policy. In short, how far does the sinning against God extend?

In his homily, Pope Francis said he was shocked to learn that the workers who died had been earning a paltry 38 euros (about $50) a month. Granted the standard of living is relatively low in Bangladesh as compared to North America and Western Europe, but that a day's pay is just enough to buy a dozen eggs gives some indication of the ongoing hardship being endured by the typical factory laborer in Bangladesh. Rather than focus only on the immediate tragedy, the pope used it to focus attention on the ongoing suffering endured by the working poor, some of whom even in Bangladesh are Christian and thus of particular concern to the pope.

The Pope excoriated the garment companies’ wage policies as being equivalent to slave labor. Speaking in the second decade of the twenty-first century, the pope said, “Today in the world this slavery is being committed against something beautiful that God has given us.” That something is “the capacity to create, to work, to have dignity.” God created human beings as being able to survive without having to compromise or sacrifice human dignity.

Of course, it could be argued that creating, working, and having dignity can be of value without any mention of a divine being. The three values could simply be social norms that are highly valued, as in Europe and North America. Even so, the tragedy sent a message around the world that organizational and societal values may not be sufficient to counter the force of greed in human nature, particularly when that nature finds itself in positions of power.

Therefore, I want to flesh out a  distinctly theological rationale that could have been behind the pope’s remarks. I turn next to what it might be.

 "God giving life to Adam" by Michelangelo.     source: fotopedia.com      
In all three Abrahamic faiths, work is punishment for Adam's original sin. In their respective poems on cycles, both Hesiod and Ovid place laboring with buried treasures in the Iron Age, which is the furtherest (and lowest) from the prestine Golden Age. At least with respect to antiquity, toil did not have much of a positive connotation.

Yet in the Renaissance and later in Calvinism, industriousness made its way as a Christian virtue. Working hard to fashion God's gold as good stewards and dispensing some of the output as charity (neighbor-love being caritas in Latin) could give work a positive theological significance.

Furthermore, creating things and having dignity could be based on mankind being made in the image of God. Creativity can be associated with God being the Creator. Human dignity can be thought of from the standpoint of Leibniz’s point that human beings have a share of the perfection that is sourced in God as the perfect being. God's being perfect is inclusive of other divine attributes, such as omnipotence (all-powerful), benevolentia (having a good will), omnipresence (being everywhere), and omniscience (knowing all). Being made in the image of God, we have a certain dignity in that we exist. Our being, or existance, has a share of ultimate being, which is perfection in God. In short, we have dignity because we exist as created by God in His image.

Trampling on the divine image in other people by paying them a humiliating wage to do mundane, repetitive work is like putting a light under a bushel even though one knows that the radiance from the light belongs out in the open rather than weighed down and hidden. “Not paying fairly, not giving a job because you are only looking at balance sheets, only looking at how to make a profit. That goes against God!” Francis said. He could easily have pointed to Jesus’s saying, “What you do to the least of mine, you do to me.” This is fundamental to Jesus’s message that God is to be loved by loving one’s neighbor—even one’s enemies. Leibniz puts this as caritas seu benevolentia universalis, or love, that is, universal benevolence, in the Codex.

In summary, sinning clothing manufacturers, including their owners and managers, deny God’s divine attributes by weighing down those created in God's image by paying them hardship wages. There is no neighbor-love in that, and thus no God. To get a fuller sense of how theology can serve as a basis for CSR, this theological rationale can be extended beyond the garment manufacturers themselves to those stakeholders who can be said to have played an indirect role in the tragedy.

The pope could have pointed to the fact that the building’s owner, Mohammed Rana, had ignored huge cracks and the consequent police evacuation order in assuring tenants that the building was safe. After the collapse, he was arrested for negligence, illegal construction (he had permission to build five stories), and forcing workers to join work.

Similarly, the pontiff could have pointed to the managers of the five factories, who, after having been informed of the evacuation order, ordered their workers to report to work. That a bank and some shops in the building did not open after the evacuation order suggests that the building’s owner and the factory managers must have known they were subjecting their employees to considerable risk of being killed.

In answer to Rana and the five factory managers who knew of the unsafe condition of the building, the pope could have given a homily on how the squalid cocktail of selfish greed, obstinate presumptuousness (i.e., “I can’t be wrong) and abuse of power can smother other people to death--pushing their lights under a bushel to be hidden forever. To knowingly put others at risk is to deny the inherent value in  not only the share of perfection that they have merely in existing, but also the font of perfection itself, which is God as perfect being.

The theological denunciations against paying the factory workers paltry wages and  forcing them to work in unsafe conditions can be extended to include the indirect culprits, such as the apparel retailers that had contracted with the five manufacturers and even any retailer that contracts with a sweatshop. The question relevant to corporate theological responsibility is whether indirectly enabling low wages and unsafe working conditions rather than acting to curtail them is included in the sin against God mentioned by the pope.

Specifically, by paying such low prices for the factory output, do the retailers keep the factory workers hungry? Were there not the contracts, would the workers be doing creative work elsewhere? Finally, do the retailers enable the factory managers to keep treating the workers in ways that violate any sort of dignity in the worker? If so, then Jesus's command to love one's neighbor as oneself is being violated not only by the manufacturers, but also by the more distant, yet contributory retailers.

The executives of retail clothing companies like JC Penney and the Gap surely know that contracting with a sweatshop allows them the advantage of paying less for the factory output because of the below-poverty wages and lack of safety upkeep. Rather than worrying about possible unsafe factory conditions or whether the factory workers can support a family, those executives are calculating that the low price they get to pay more than makes up for the additional shipping costs. 

Approaching CSR alternatively by looking at social norms, the disjuncture between the executives' values and societal values concerning sustenance would be the focal point. CSR would be oriented to change the executives' values so they are in line with the societal values, perhaps by showing the executives that their respective companies can make more money that way, or at least have a better reputation.  

In approaching CSR by means of ethics, the question would be whether the executives' motives, actions, or consequences thereof violates an ethical principle. Are those executives violating the social contract wherein the rights a company enjoys come with certain obligations? Are those executives enabling people to be treated only as other peoples' means, or also as ends in themselves? Do the low wages and unsafe conditions go along with the greatest happiness for the greatest number of people? Especially if the answers to these three questions all point to unethical conduct, the retailers' policies ought to be changed.

Adding insult to injury, the apparel retailers extend very little flexibility to the sweatshops. American Apparel CEO Dov Charney explains that in the apparel industry, “it’s all about deadline. You’ve got to get these sweatshirts or this swimwear by a certain day, or you’re nailed, and you’re out of business.” Strict cutoff dates and the lack of cooperation from retailers pushed factories in developing countries to their limits, forcing them to do whatever it takes to get the job done on time. This may explain why the managers of the five factories chose to ignore the evacuation order. If so, the relevant retailers bear some of the blame for pressuring the managers to do whatever it takes to finish an order on time, even if doing so involves risking the lives of the workers.

Beyond the managers and companies involved, the Indian society itself, particularly as it is reflected in public policy on the state and federal levels in India, may also be culpable theologically for having been negligent toward worker safety. The societal norm allowing for corruption in India allows building owners, construction companies, and manufacturers to get away with a lot. In the U.S., the Occupational Health and Safety Administration and a watchful media provide sufficient scrutiny that manufacturers cannot easily get away with whatever they want. Accordingly, Charney, whose factory is located in the U.S., declares, “If there’s something unsafe at my factory I’m shutting that thing down. If not, one wrong move and it’s all exposed. That’s a good thing. That’s not a bad thing.” He may be drawing too stark a contrast so the Indian government will be forced to increase the minimum wage in the low-cost factories. For our purposes here, the relevant point is that the failure of the Indian government to enact and enforce more rigorous regulations oriented to worker safety and wages may also be within the sin against God.



More generally, legislators and government officials who do not do enough in enacting public policy oriented to achieving full employment may be sinning against God. “There are many people who want to work but cannot,” the Pope said. “When a society is organised in a way that not everyone is given the chance to work, that society is not just.” The justice to which the Pope undoubtedly was referring is divine justice, which also stems from God’s attributes—in particular, omnipotence (all-powerful) and omniscience (all-knowing). According to Leibniz, that justice is essentially love manifesting as universal benevolence. Simply put, having a share of God’s perfection, each person is due benevolence from others.  To violate that justice, such as by selfishly paying another person only enough to keep him as a means rather than as having value in being made in the image of God, is to sin against God.




In summary, managers (and their companies) who are not theologically responsible to the workers are not merely unethical and acting contrary to societal norms. From the theological perspective, the fundamental flaw in running a company centers on sinning against God. Prideful selfishness and sordid greed slight God by replacing neighbor-love with exploitation. This is not to say that God, being omnipotent, is confined to our social norms or even our ethical systems. A theological perspective can mandate conduct that is unethical or against a society’s norms. So the theological perspective does not reduce to either that of ethics or sociology. There are, however, at least two problems in going with the theological grounding.




First, it is debatable whether a theological rationale for CSR can or should be recognized as valid beyond the safe confines of the believers who subscribe to the theological doctrines. For example, it might not be fair to apply criteria from Christianity to the people of India, whose people are predominantly Hindus, Jains, and Sikhs. In his homily during Midnight Mass in 2010, Pope Benedict XVI cited Origen, a theologian in Early Christianity, who saw paganism such as Hinduism as "a lack of feeling." Paganism, the pope said quoting from Origen, "means a heart of stone that is incapable of loving and perceiving God's love." In other words, a Hindu married couple is incapable of loving each other. "Lacking feeling and reason, [pagans] are transformed into stones and wood." A Hindu manager would likely ask why he should apply a pope's theological criteria to anything. If the Hindu manager is "lacking feeling and reason," how could he apply any criterion?

It could be argued that the extent of corruption allowed and the consequent laxity in regulation and wage-support in India should be critiqued by Hindu rather than Christian principles, though non-Hindus in India would doubtlessly object to even that solution. It is not clear, therefore, whether religious claims from any religion, including Christianity, are universal enough to be applicable beyond the members of the particular religion. If so, it might be difficult to treat religious belief as an alternative to ethical principles and social norms on which to base CSR.



Second, the Pope’s theological rationale can be put in secular terms without much if any change in the resulting prescription. For example, trampling on creatures made in the image of God bears a resemblance to Kant’s ethical categorical imperative that rational beings should be treated not only as a means to one’s own interests, but also as an end in themselves. Exploiting workers, whether by paying them an insufficient wage or mandating that they work in an unsafe building, involves treating them as a means only. How much more of a rationale need be added in terms of theology? In other words, is the Pope’s rationale redundant, practically speaking? If not, perhaps theological (or religious) corporate responsibility should be developed. 


Sources:
Agence France Presse, “Pope Francis Condemns ‘Slave Labor’ in Bangladesh: ‘Goes Against God’,” The Huffington Post, May 1, 2013.  
Farid Hossain, “Bangladesh Building Collaspe Death Toll Rises To 430, Many Still Missing,” the Huffington Post, May 2, 2013.   
Syed Zain AL-Mahmoud, “Bangladesh Factory Toll Surpasses 800,” The Wall Street Journal, May 8, 2013.
Pope Benedict XVI, "Midnight Mass Homily," The Vatican, December 24, 2009.




Pope Francis Urges an Ethical Basis for Markets: Taking on the Prosperity Gospel?

Going after the “profit-at-all-cost mentality . . . behind Europe’s economic crisis,” Pope Francis told reporters travelling with him to the Church's Youth Day 2011that morals and ethics must play a greater role in future regulatory policies. “The economy doesn’t function with market self-regulation," the Pope claimed. Like Adam Smith who had situated his own theory of perfect competitive on a foundation of moral sentiments to keep markets from going to excess and thus self-destructing, Pope Francis asserted that a market needs "an ethical reason to work for mankind.” He added that the moral dimension is “interior and fundamental” to economic problems.

The Pope's appeal to the ethical dimension as the foundation of a market begs the question: What would a theological, or distinctly Christian, basis look like? The prosperity gospel would not stand a very good chance of being chosen, for it holds that God rewards true believers with earthly wealth rather than only with salvation. The basis for this interpretation is well represented in the Old Testament. During the years leading up to the financial crisis of 2008, a significant number of subprime mortgage borrowers were convinced that their Christological belief qualifies as true belief and, furthermore, that God would provide, even miraculously if necessary, so said borrowers would be able to make even the higher (ARM) mortgage payments on houses beyond the borrowers' own financial means. Viewing God as the font of earthly treasure is to leave Christianity impotent in acting as a constraint against greed and wealth.

Facing the headwinds of deregulation and a Wall Street government, religious Americans weary of the excesses of uninhibited greed in the financial sector may want to press the Roman Catholic Pope to provide a constraining theologically-based ethic capable of counterpoising the hegemony of the prosperity gospel. Historically, the first three or four centuries of Christianity sported many anti-wealth theologians whose arguments could be appropriated to fill the gap left open by insufficient regulation.

Source:

David Roman, “Pope Visits Spain, Says Ethics Should Guide Economics,” The Wall Street Journal, August 19, 2011.