Towards an ethical and responsible business!

Legha MomtazianSeptember 2013PhD researcherUniversity of Sheffield

Based on the Baha’i principles

Objectives: To explore the impact of religious beliefs

on business, historical review To explore how Baha’i principles are

similar and different with Islam, Christianity and Judaism

To investigate the spirit of service in business context

To study how consultation has been referred to and practiced in business

The impact of religious beliefs on business

Weberian (Protestant) perspective

Marx and Engels

The recent (empirical) studies of the effect of religion on business and workplace show a variety of impacts on motives, attitudes and behaviour including on business ethics and creating values in the workplace

Weberian(Protestant) perspective

Industriousness

Rational economic behavior

Motivation to work

Formation of enterprise

Capitalism

Work as a means of grace from God (a “calling”)

Religion

Religion, an illusionary source of happiness The tool to bring obedience for masters

Business

Marx and Engels perspective

The impact of religious beliefs on business

Weberian (Protestant) perspective

Marx and Engels

The recent (empirical) studies of the effect of religion on business and workplace show a variety of impacts on motives, attitudes and behaviour including on business ethics and creating values in the workplace

In Baha’i principles:

“Work done in the spirit of service is the highest form of

worship.”

The Baha'i faith in relation to  Islam, Christianity and Judaism• Noble and sacred Human Beings (in Baha’i principles,

man regarded as a mine “rich in gems of inestimable value”)

• Notion of doing the right thing and Legitimate Earning (the noble man, has been specialized with supreme bestowals to “to make him the manifestation of divine virtues, a radiant light in the world of creation, a source of life and the agency of constructiveness in the infinite fields of existence.” )

• Love of God (In Baha’i principles it is referred to as Application of the Science of Love of God in business. It is also mentioned: “Observe My commandments, for the love of My beauty”)

The Baha'i faith in relation to  Islam, Christianity and Judaism Justice and Fairness through Golden Rule

(equality and brotherhood contributing to preservation of he rights of mankind --> prefer others to oneself and sacrifice ones life and property for others)

Honesty and Trustworthiness Sharing (“ready willingness to share” in

Baha’i principles) Stewardship and Concern for Poor (Poor as

the trust of God among riches) Care for Animals and the Environment

Uniquely discussed in Baha’i principles: Spirit of service (work as worship, if “done in

the spirit of service”) Cease to War Expenditure (the enormous

resources wasted on war to be utilised towards betterment of human life.

Consultation (people of a village, members of a profession or in industry and commerce are advised to refer to consultation in order to find the right solution but with its essential characteristics)

Service in literature Corporate social responsibility Social entrepreneurship as a business

model Leadership vs. management Power structures and organizational

structures in comparison with consultation based structure

Employee involvement and responsibility

Spirit of service in Business:

Organization objectives, structures,

strategies, environment/culture

Employee relations

Customer relations

Stockholder relations

External relations with

financial institutions, suppliers, Gov. etc.

Employee involvement and responsibility Decide: Group members play their role as the sources of

information but the leader makes the decision without explaining his/her rationale to the group.

Consult (individual): The leader asks each group member’s opinion separately and decides based on individually obtained information.

Consult (group): Leader comes to a decision in consultation with the entire group at once.

Facilitate: The leader collaborates with a group towards a unified and consensual decision, without imposing any solution to the group. Thus the group makes the final decision.

Delegate: The leader passes the problem to the group and supports them while the group itself comes to a decision.

Can it work in?!

Competition?

Self-interest led consultations and no immediate intention for social

good?

Intolerance and disrespect?

Consultation in Baha’i principles

“The shining spark of truth comes forth after the clash of

differing opinions”

Objectives of consultation To bring forth: The light of awareness and certitude The shining spark of truth Unity Well being, tranquillity and felicity Assurance and solutions to the

problems

The prime requisites to consultation Purity of motive, Radiance of spirit,

Detachment, Attraction, Humility, Patience, Servitude

Utmost love, Harmony and Sincerity

Calmness and Composure

Utmost devotion, Courtesy, Dignity, Care and Moderation to express their views

Significance of unity“If they agree upon a subject, even though it be wrong, it is better than to disagree and be in the right, for this difference will produce the demolition of the divine foundation. Though one of the parties may be in the right and they disagree that will be the cause of a thousand wrongs”. (Abdu’l-Baha, 1976)

“If they agree and both parties are in the wrong, as it is in unity, the truth will be revealed and the wrong made right.” (Abdu’l-Baha, 1976)And unity “will offset any deficiency, and will eventually lead to the righting of the wrong.” (Abdu’l-Baha, 1991)

Empirical research to be doneObjectives: To explore the application of spirit of service in employee relations and related aspects, To explore consultation or other levels and methods employee involvement in decision-making

Design: Case Study research

Method: Multimethods with the focus on qualitative methods: interviews, questionnaire and observation

Summary and conclusion An alternative way to view the business is that

it exists to serve the society through its nature and activities!

This perspectives needs conscious responsibility of every one involved in a business, in their thoughts, decisions and action!

Inclusive Participatory Consultation in a frank and friendly environment may contribute to more responsible and service-oriented decisions. It could contribute to refining organization objectives, values and culture, etc.