Transcript Religion and Multinational Management

Religion, Confucian Ethics,
and Multinational Management
Chapter 3, pages 95 - 100
The Four Largest Religions
in the World
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Christianity
Islam
Hinduism
Buddhism
Islam
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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.
Monotheistic Religions
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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.
Areas with a
Large Percentage of Muslims
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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
Implications of Islam
for Business
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Businesses are often expected to make
charitable contributions.
Business should not exploit people.
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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.
How Islamic Banks Can Make Money
without Charging Interest
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Contracts are negotiated in advance.
The bank can go into partnership with a
business or an entrepreneur.
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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.
How Islamic Banks Can Make Money
without Charging Interest (2)
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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.
Hinduism
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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".
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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.
Hinduism (2)
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Caste system – based on the social position of a
person's ancestors
Religious teachers (Brahmans)
2. Rulers, warriors, and government officials
3. Merchants, farmers, businessmen
4. Craftsmen, laborers, and servants
Each of these has many sub-castes.
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The Dalits, once called untouchables, are below all
the castes.
India's Constitution forbids discrimination on the
basis of caste.
Hinduism (3)
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Hindu beliefs include ethical principles by which
people should live.
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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.
Buddhism
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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
The Confucian Ethic
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Originated by K'ung Fu Tzu (Confucius)
Five cardinal relationships
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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.
The Confucian Ethic (2)
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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.
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Law and punishment were not emphasized.
The Confucian Ethic and Business
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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.
Religion and Culture in Japan
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Traditionally, Japanese have followed more than one
religious tradition.
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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.