Profit and More: Catholic Social Teaching and the Purpose of the Firm

The empirical findings in Collins and Porras' study of visionary companies, Built to Last, and the normative claims about the purpose of the business firm in Centesimus Annus are found to be complementary in understanding the purpose of the business firm. A summary of the methodology and findings of Built to Lastand a short overview of Catholic Social Teaching are provided. It is shown that Centesimus Annus' claim that the purpose of the firm is broader than just profit is consistent with Collins and Porras empirical finding that firms which set a broader objective tend to be more successful than those which pursue only the maximization of profits. It is noted however that a related finding in Collins and Porras, namely that the content of the firm's objective is not as important as internalizing some objective beyond just profit maximization, can lead to ethical myopia. Two examples are provided of this: the Walt Disney Company and Philip Morris. Centesimus Annus offers a way to expose such myopia, by providing guidance as to what the purpose of the firm is, and therefore as to what kinds of objectives are appropriate to the firm.     

Catholic Social Teaching: A communitarian democratic capitalism for the new world order

Catholic Social Teaching has taken a remarkable turn with the May 1991 document on economic ethics,Centesimus Annus. During their one hundred year history, church documents were notable for their courageous championing of the rights of the least advantaged; they were much less distinguished for their understanding of how markets and incentives function in capitalism. Most business leaders admired church teaching for its compassion but had little respect for its competence. With this most recent document, however, there is a growing conviction that the church may have come of age in economic ethics. Even theWall Street Journal has celebratedCentesimus Annus. The article outlines the highlights of the document and its points of continuity with the tradition. Responses from business and the academy are also briefly considered.Oliver F. Williams is a member of the faculty and serves as Associate Provost of the University of Notre Dame. A Catholic priest, Father Williams has a doctorate and other degrees in theology and chemical engineering. He has published and lectured extensively in the field of business ethics.This article includes an updated version of some material previously published. For more elaboration on the history of Catholic social teaching, see articles by Williams, O. F. in Houck, J. W. and Williams, O. F. (eds.): 1984,Catholic Social Teaching and the U.S. Economy: Working Papers for a Bishops' Pastoral (University Press of America, Washington, DC) and in Williams, O. F. and Houck, J. (eds.): 1982,The Judeo-Christian Vision and the Modern Corporation (University of Notre Dame Press, Notre Dame, IN).     

Culture and the limits of Catholicism: A Chinese response toCentesimus Annus

However much the Catholic Church may wish to free the peoples of the world from the excessive atheistic rationalism of the Englihtenment that has pitted science against religion, it is still in most other ways solidly on the side of modernity.Centesimus Annus endorses aform of democracy, akind of capitalism, asort of technological development, all of which are strongly undergirded by a resolute belief in human beings as rights-bearing individuals possessed of individual autonomy and a legitimate appetite for private property. The themes of liberal democracy, capitalist free enterprise, and the proliferation of rational technologies form the common focus of both the Enlightenment and Anti-Enlightenment sensibilities. From a Chinese perspective, these culturally alien themes are viewed with suspicion. The Chinese are increasingly troubled by the corrosive effects upon their culture and social fabric associated with and embedded in the modernizing impulse. But, for a variety of reasons, it certainly seems that China will have little choice but to accommodate modernity in some sense, whatever the risks. The serious question is: “Will China remainChinese under the conditions of modernization?”     

Centesimus Annus: A critical Jewish perspective

The author reviews a series of deep affinities between the Catholic social teaching embodied in Pope John Paul II's recent encyclical,Centesimus Annus, and traditional Jewish teachings about economic justice. At the same time, the author maintains that from a Jewish perspective there is a disquieting feature to this recent papal letter. It presents twentieth century history in ways that mute or conceal the role some earlier papal teaching played in the rise of corporatist states, with their authoritarian regimes and xenophobic nationalism.Centesimus annus thus obscures the complex contribution Catholic social teaching made to the events leading up to the Holocaust of European Jewry.Ronald M. Green is the John Phillips Professor of Religion in the Department of Religion, Dartmouth College and Adjunct Professor of Business Ethics at Dartmouth's Amos Tuck School of Business Administration. The author of four books, Professor Green is currently working on a textbook in business ethics entitledThe Ethical Manager to be published by Macmillian.     

Religions's moral compass and a just economic order: Reflections on Pope John Paul II's encyclicalCentesimus Annus

The purpose of Pope John Paul's encyclicalCentesimus Annus (CA) is to propound the foundations of a just economic order and to sketch its essential characteristics. As such he essentially provides an orientation or moral compass for the political economy rather than a precise road map. This article first reviews the principal components of CA and then analyzes and evaluates its central contentions on both cultural and economic grounds.S. Prakash Sethi is a Professor of Management and Associate Director of the Center for Management, Baruch College, The City University of New York. He has published twenty books and over 130 articles in scholarly and professional journals in such diverse areas as business and public policy, corporate strategy, and international business.Paul Steidlmeier is associate professor at the School of Management of Binghamton University in the State University of New York system. He has written a number of articles in leading journals and has publishedPeople and Profits: The Ethics of Capitalism (Prentice Hall, 1992). Recent work has focused upon institutionalist aspects of Business and Society issues and problems of intellectual property and the social responsibility of business in developing countries (China).     

Religion,humanism, marketing,and the consumption of socially responsible products,services, and ideas: Introduction to a special topic section

This introduction to the special issue provides an overview and brief summary of the eight articles that follow and take up the issue's theme. Despite the fact that religion and religious world views exert considerable influence on consumer attitudes and behavior, mainstream business journals have presented little research that explores the relationship between religion and marketing. Articles featured in this special issue examine three themes of interest: (1) the influence of strongly held religious or non-religious world views on the marketing of socially responsible behaviors; (2) how religious world views influence the conduct of marketing; and (3) what marketing scholars can learn from the marketing practices of various religious organizations. The authors extend a note of appreciation to the reviewers of the many papers submitted to the issue and to the editor-in-chief of the Journal of Business Research, Arch Woodside.     

Brands and religious labels: a spillover perspective

Abstract

With different religions mixing in many societies, religious consumer groups receive increasing attention as target segments. Trying to appeal to such religious segments, companies differentiate food products by adding religious labels (e.g. kosher or halal) to packaging. But while this makes the products more attractive to the consumers of the focal religion, adding a religious label may also impact the brand evaluation by consumers with no religious beliefs or a different religious orientation. Drawing upon social identity theory to explain the psychological basis of inter-group discrimination, and taking account of information integration theory to analyse how religious labels affect product and brand evaluations, this article aims to assess the spillover effects between religion and brand among consumers who are not part of the religious communities addressed by these labels. The findings indicate that the perception of religious labels on food packaging is influenced by the attitudes towards the religion and the brand, while the relative importance of both antecedents is dependent upon several consumer characteristics. The theoretical and managerial implications of our findings, the limitations of our work and directions for future research are discussed.     

ἐμπάθɛια (Empatheia) and Caritas: The Role of Religion in Fair Trade Consumption

There is much still to learn about the nature of fair trade consumers. In light of the Pope’s encyclical Caritas in Veritate, this article sought to advance the current understanding by investigating the role of religion in fair trade consumption. In this study, fair trade consumers and non-consumers across many religions as well as the non-religious described their consumption of fair trade products as well as the use of their religious beliefs in their purchase behavior. It appears that the non-religious are slightly more inclined toward buying fair trade products. Of the religious observers studied, Buddhists have a greater propensity to buy fair trade. The relationship between religion and fair trade consumption is complex in that religious affiliation – group membership – alone is not enough to encourage members to buy fair trade; rather, it is the use of religious beliefs as a criterion in consumption behavior that linked religion to fair trade consumption.     

Business Dilemmas and Religious Belief: An Explorative Study among Dutch Executives

This paper explores the relationship between religious belief and the dilemmas Dutch executives confront in daily business practice. We find that the frequency with which dilemmas arise is directly related to various aspects of religious belief, such as the belief in a transcendental being and the intensity of religious practice. Despite this relationship, only 17% of the dilemmas examined involve a religious standard. Most dilemmas originate from a conflict between moral and practical standards. We also find that 79% of the identified dilemmas stem from a conflict between two or more internalized standards of the executive.Johan Graafland is a Professor of Economics, Business and Ethics at Tilburg University and Director of the Centre for Corporate Social Responsibility at the Department of Philosophy of Tilburg University. He has published articles in The Journal of Business Ethics, Business Ethics: A European Review, Philosophia Reformatica, Journal of Corporate Citizenship, Applied Economics, Economics Letters, Oxford Bulletin of Economics and Statistics, Empirical Economics, Journal of Policy Modelling, Public Finances/Finances Publique, Economic Modeling, Journal of Public Economics and others. His current research interests are corporate social responsibility and philosophy of economics.Muel Kaptein is a Professor of Business Ethics and Integrity Management at the RSM Erasmus University, where he chairs the Department of Business-Society Management. Muel is also a Director at KPMG Integrity and Investigation Services. He has published articles in a number of journals, including The Journal of Business Ethics, Business & Society Review, Organization Studies, Academy of Management Review and European Management Journal. His most recent books are The Six Principles of Managing with Integrity (Spiro Press) and The Balanced Company (Oxford University Press). His research interests include the management of ethics, the measurement of ethics and the ethics of management. Muel is a Section Editor of the Journal of Business Ethics.Corrie Mazereeuw-van der Duijn Schouten is a senior researcher at the Centre for Corporate Social Responsibility at Tilburg University, the Netherlands. She has several years of experience as business consultant in the field of organizational change and group processes within organizations. Her research interests include leadership, religion and corporate social responsibility. She is currently working on a PhD thesis on religion and leadership.     

Acknowledging religious diversity: Opportunities and challenges

Because federal law protects an employee's right to religious accommodation, managers cannot ignore the issue of religious diversity. The matter is far broader than simple legal compliance, though. Certainly, managers need to better understand the laws protecting employees’ rights for accommodation and prohibiting disparate treatment, religious harassment, and retaliation. However, they also need to understand the various opportunities and challenges associated with acknowledging religious diversity. Concerning opportunities, research suggests that allowing employees to express aspects of their religion can enhance their work lives and, thus, the value they place on the organization. Furthermore, respect for religious diversity can encourage a useful mindset for communicating with other stakeholders in areas from advertising to the sports interests of salespeople. Since learning more about a range of faiths can lead to greater skills in working with diverse groups, we offer information on Prothero's God Is Not One: The Eight Rival Religions That Run the World—and Why Their Differences Matter and on different religions’ practices associated with death-related issues. In conclusion, we provide insight regarding the benefits of acknowledging religious diversity while respecting those who identify with no religion, and we do so without opening the door to proselytizing.     

Religious Influences on Shopping Behaviour: An Exploratory Study

The significance of religious value systems has long been recognized in sociology and psychology but is not yet fully acknowledged in consumer research. Studies in the marketing literature suggest that religion is a key element of culture, influencing both behaviour and purchasing decisions. This paper examines the influence of religion on consumer choice and is based on the proposition that adherence to a particular religious faith significantly influences shopping behaviour. Using the purchase of a television as the basis, the research examines the contrasting shopping behaviour of Hindus, Muslims and Catholics. The results suggest that religious affiliation should be included in future cross-cultural research and that there is considerable potential for extending research into the influence of religious affiliation on consumer behaviour.     

Consumer transits and religious identities: towards a syncretic consumer

ABSTRACT

The majority of research on religious consumption assumes stable, singular and exclusive preferences, an individual is an adherent to one religion at a time and conversion is a radical break in identity. In examining a context where individuals can simultaneously practice multiple religions despite seemingly theologically incompatible beliefs, we introduce the concept of religious transit, allowing for a more processual understanding of religious identity. To do so, we draw on theories of religious capital, foregrounding the flexibility of this resource in enabling multifarious religious consumption. This is made possible by the religious leaders themselves; in highlighting shared rituals and discourses, they downplay any cognitive incongruences to allow for easy, market-mediated accessibility. By conceptualising four types of religious consumption, we theorise the dynamics of consumer mobility.     

Does Religious Similarity Matter in International Trade in Services?

Impacts of religion on trade in services were examined using gravity models with two estimation methods: Poisson pseudo‐maximum likelihood (PPML), to correct for heteroscedasticity and bias due to the exclusion of zero trade flow, and standard Heckman correction to compensate for sample selection bias. We found that religious similarity contributes to increased international trade in services by establishing ‘trust‐related institutions’. Second, religious pluralism (variety) fosters trade even more than religious similarity, suggesting that in facilitating trade, religious openness matters more than religious similarity. Third, a strong dominant religion discourages trade in services, whereas the presence of religious minorities encourages trade in services. A highly significant inverse Mill's ratio (IMR) result indicated the presence of sample selection bias, indicating that controls are necessary to prevent estimation bias. This study concluded that religion is an important determining factor for trade in services, positively affecting interpersonal trust and thereby reducing institutional distance between countries.     

How does religion discipline the consumer subject? Negotiating the paradoxical tension between consumer desire and the social order

ABSTRACT

In this article, we revisit Russell Belk, Guliz Ger and Soren Askegaard’s study on consumer desire. We do so in an effort to further advance the extant understanding of desire in consumer research. Specifically, informed by Lacanian psychoanalytic thought and sharing much affinity with Foucault’s central argument in The History of Sexuality, we consider how the institution of religion functions as a disciplining force by which to mediate the (potential) conflict between human desire and the social order. For the purposes of this article, we focus our analytical gaze on how consumption practices have the disciplinary effect of regulating desire. That is to say, we illuminate how religion (and religious ideology) dictates certain consumption practices, which ultimately perform to ensure that the pursuit of desire does not contravene the pre-existing social order that structures society and organises social relating. To animate our theoretical claims, we draw on a qualitative study of the Tablighi Jamaat, an Islamic sub-culture originating in South Asia. This article builds on extant sociological and anthropological studies that have captured the nexus between religion and the workings of the marketplace. However, unlike past studies, the question posited at the crux of this article concerns desire and, particularly, how desire becomes subjected to the discourses pertaining to religiously prescribed consumption practices.     

Faith at Work Scale (FWS): Justification,Development, and Validation of a Measure of Judaeo-Christian Religion in the Workplace

Workplace spirituality research has sidestepped religion by focusing on the function of belief rather than its substance. Although establishing a unified foundation for research, the functional approach cannot shed light on issues of workplace pluralism, individual or institutional faith-work integration, or the institutional roles of religion in economic activity. To remedy this, we revisit definitions of spirituality and argue for the place of a belief-based approach to workplace religion. Additionally, we describe the construction of a 15-item measure of workplace religion informed by Judaism and Christianity – the Faith at Work Scale (FWS). A stratified random sample (n = 234) of managers and professionals assisted in refining the FWS which exhibits a single factor structure (Eigenvalue = 8.88; variance accounted for = 59.22%) that is internally consistent (Cronbach’s α = 0.77) and demonstrates convergent validity with the Faith Maturity Scale (r = 0.81, p > 0.0001). The scale shows lower skew and kurtosis with Mainline and Catholic adherents than with Mormons and Evangelicals. Validation of the scale among Jewish and diverse Christian adherants would extend research in workplace religion.     

Religious Intensity,Evangelical Christianity,and Business Ethics: An Empirical Study

Research on the relationship between religious commitment and business ethics has produced widely varying results and made the impact of such commitment unclear. This study presents an empirical investigation based on a questionnaire survey of business managers and professionals in the United States yielding a database of 1234 respondents. Respondents evaluated the ethical acceptability of 16 business decisions. Findings varied with the way in which the religion variable was measured. Little relationship between religious commitment and ethical judgment was found when responses were compared on the basis of broad faith categories – Catholic, Protestant, Jewish, other religions, and no religion. However, respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations. Evangelical Christians also showed a higher level of ethical judgment.     

Taboo on TV: gender,religion, and sexual taboos in transnationally marketed Turkish soap operas

ABSTRACT

This study illuminates the ways in which men and women consume soap operas as a means of reflecting on and discussing sociocultural taboos. Through interpretive research we examine the ways in which religion, sexuality and gender relations are depicted in popular Turkish soap operas and how these depictions are consumed in the Balkans and the Middle East. This study challenges the assumption that consumption of taboo discourses leads to active identity modification or public defiance. Instead, in-depth interviews and online ethnography reveal that consumption of soap operas that challenge local religious and gender norms provide a liminal space for discussing taboo topics. Firstly, the findings indicate that talking about taboo topics seen in soap operas enables consumers to speak about what they expect gender and religious norms to be. Secondly, consumers get their mediated understandings of what religion is through soap operas. Thus, rather than simply offering escape, soap opera consumption facilitates the discussion of taboo topics.     

Religious institutions and entrepreneurship

This article focuses on the impact of religious institutions on entrepreneurship. We find clear evidence that different religious institutions have a significantly different impact on the tendency to become an entrepreneur. Our article makes important contributions to the research of both religion and entrepreneurship. First, it proposes empirical evidence in which the country’s main religion significantly affects its level of entrepreneurship at the macro level. Second, it adds to our theoretical understanding of the mechanisms that characterize the effects of religion on entrepreneurship. We suggest that macro effects of religion as part of the country’s culture and institutions affect the country’s level of entrepreneurship beyond the direct effects of religion on the behavior of the religion’s members in the society.     

Predicting Customer Satisfaction from ATMs: A Cross Country Study

ABSTRACT

In recent years, churches and religious organizations have come to recognize they are involved in marketing activities. A review of the religion journals found 17 articles on marketing issues published since 1976. Reasons for religious organization resistance, as well as gradual acceptance of marketing, are discussed. Opportunities for future research are considered.