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 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 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 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 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. 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. 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. 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. Hinduism (2) 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. 1. The Dalits, once called untouchables, are below all the castes. India's Constitution forbids discrimination on the basis of caste. 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. 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 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. 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. 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. 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.