Concept of Religious Freedom: Analytical Essay

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Abstract

This paper analyzes how religion can result as a cultural stabilizer for international management and business. To understand the reasoning behind this, it is important to understand the basics of religion and culture in order to understand how its affects international activity. Countries with religious restrictions are shown to have more corruption and violence. Religious freedom, on the other hand, has a significant impact on how business is conducted and the forming of relationships between countries. Having freedom of religion provides many opportunities for religion to stabilize global trading. Lastly discussed are the top five world religions which helps which understanding of business practices in different counties and cultures.

Introduction

People see religion as a way to conduct their life by beliefs or a belief system. This created a moral code in how they viewed what is right and what is wrong. People started to create social groups to practice their faith. Over time these groups created communities linking them together by a common belief system and ethical values. Each community created their own set of ideas, religious views, morals, values, and even formed political views to live by. As these custom beliefs expanded, it created the diversity of mankind. Over the years, society’s viewpoints and perspectives on various aspects of life have changed. However, the one aspect of life that has stayed constant has been religion. Religion tells us how to behave and how a person lives their life. This is not just between people, but with conducting business locally and internationally. All religions tell us how to treat each other. It has been known as a stabilizer for the economy as well as international business.

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Framework behind Religion

Religion has been a major influencer on the world and the forming of society. The individual person is at the origin of all economic activity. (Merriam-Webster) defines religion as “a personal set or institutionalized system of religious attitudes, beliefs, and practices.” Religion is sought to give daily life meaning and hope that there is a better after life. Religion tells people how to behave, how to treat others, and forms our prospective on what is right or wrong. This is not just between people, but among businesses and other countries. When religion tells us how to treat each other, this also affects how each countries conducts business.

Besides individual differences among people, culture is shown to be the main driving force that separates humans into groups. Culture and religion are similar. Most cultures practice similar religions or beliefs. Culture is known to be the way of life of a group of people. (Helble) tells us that culture includes “language, ideas, beliefs, customs, codes, institutions, tools, techniques, works of art, rituals, and ceremonies, among other elements (Britannica 2005).” Over time, a culture forms traditions that is passed down from generation to generation. Many studies have shown how religious beliefs have a strong influence on culture and have molded many cultures based on religious practices. When many people in the same culture strongly believe in a specific set of beliefs or religion, it can have an enormous impact on their culture. Overtime, people’s decisions and actions are based on what they believe in creating religion to shape culture. Culture and religion can take credit for forming values and behaviors.

Religion has formed the identity of many people and the way our society has transformed over time. Even though there are not many studies, there is a lot of discussion on how religion affects international business and relationships. According to Pew Research Center (2012) more than 230 countries, “more than eight-in-ten people identify with a religious group.

Religious Hostility

When religion is restricted, it creates social hostilities. Government restrictions on religion continued to strongly and significantly forecast religious hostilities. Many events in history show the violence and hostility that has swept the globe through conflict of religious beliefs. Wars in Afghanistan and Iraq made it clear that even a few religious extremisms can lead to wars and disruption of the economy. Religious freedom can be restricted in two general ways. “(1) restrictions that arise from governmental suppression or persecution of religion and (2) restrictions that arise from social hostilities involving religion” according to (Assouad and Parboteeah 2018). Countries who act on religious restrictions show an outcome of more violence than countries who give freedom of religion. “The number of people living with high government restrictions increased from 58 percent of the world’s population in 2007 to 64 percent in 2012” (Pew Research Center 2014). From the lack of government respect, religious hostility can push away local and foreign investment, development, and big impacts on the economy. For example, in Egypt, religious hostility greatly affected tourism. Another example involves Islamic finance. One side of the law makers make a particular document acceptable while another does not making it hard to interpret Islamic law on this stock exchange. Other examples include the banning of Hollywood films for religious reasons along with anti-blasphemy laws that attacks business competition. The most noteworthy is the affect it may have on future economic growth with young entrepreneurs being fearful of the restrictions and may go elsewhere. If religion is such a distinct part of who human beings are, the reason for religious hostility stands for itself.

Religious Freedom

Religious freedom has grown in importance over the years. Religious freedom can be defined as a basic civil liberty. This basic right measures freedom of worship, freedom from religious persecution, freedom of religious press, freedom of religious expression, and freedom of religious organization and affiliation. The presence of freedom on religion contributes to better business and economic outcomes in many ways. (Assouad and Parboteeah 2018). Research has shown “that religious freedom is not only important in its own right but also correlates with a host of other goods like civil and political liberties, freedom of the press, democratic longevity, better health care and economic prosperity.” Religious freedom has the ability to promote stability. When stability between countries is formed, there is more opportunity for investment and less stressful interactions. “International businesses should be concerned about religious freedom because it affects the general business environment, political relationships among countries, and consumer sentiment of companies doing business in countries that suppress religious freedom” (IIan and Gregory 2005).

Religious freedom is a key factor for peace and stability. When religious people can practice their faith openly and freely from governmental restrictions, it can shape social and political life. When practiced freely, it also permits people of faith or religion based organizations to provide a social service for people with grief. When people are able to help others in needs, this creates peace from both parties. Practicing free exercise of religion works against any future control or order over personal freedom. In other words, maintaining a free society. “If more states respect the religious rights of their citizens, domestic and international peace and stability will increase as well” (Saiya 2015). Removing obstacles to religious freedom can have significant correlation and economic outcomes (i.e. better health care and higher incomes for women.)

Religious freedom can also foster respect and multiply trust. For example, Abercrombie & Fitch lost a case due to religious discrimination where by a Muslim girl was fired for wearing a scarf because of the company’s dress code policy. This caused the company a lot of negative publicity and a loss financially. If the company would have been tolerating to her religious beliefs, there would not have been any conflict resolution needed. When doing business internationally, religious freedom ensures both parties that there is equal rights and equal opportunity regardless of their beliefs or nonbelief’s. When there is mutual respect, it provides a common ground to put aside religious differences and to share the same interest. This can give each party a competitive advantage. It has also been shown that it can multiply trust by effecting the company’s bottom line. When there is a shared vision of growth stability, this can deliver lasting benefits.

Religious Freedom also reduces corruption. History, as well as the present time, shows that the countries with very high governmental restrictions on religion result in having higher levels of corruption. Many ethical and religious tenets see corruption as wrong doing including dishonesty, theft, illegal activities, and abuse of others. While studies have not established a firm link between religion and corruption, it does suggest that religion can be a significant influencer. In support of Catholic beliefs God is represented as light by all world faiths, however, corruption is denoted by darkness. The Bible also states in Hosea 9:9, “They have sunk deep into corruption, as in the days of Gibeah. God will remember their wickedness and punish them for their sins” (Holy Bible). Many religions are strongly against corruption actions. In conclusion, religious freedom gives people the right to govern their business based on their own religious values and moral teachings. Religious freedom contributes to “better economic and business outcomes, advances in religious freedom are in the self-interest of businesses, governments and societies” (Grim 2014).

World Religion

Religion has played a key role in workplace cultural diversity. Many employees want their religious beliefs and practices to be accommodated. Failing to recognize different religions and respecting their beliefs can result in troubling situations. The same goes for conducting international business. In order to help people from different cultures work together, it is essential to understand and be aware of the difference between religions. World religions are “characterized by a unique emphasis on extended prosociality, restricted sociosexuality, delayed gratification and the belief that these specific behaviours are sanctioned by some kind of supernatural justice” (Baumard and Chevallier 2015).

An individual’s cultural traits tells him how to act and what to invest in economically. The number of goods being traded continues to grow causing more inter-cultural relationships. Language and religion (Helble) are distinguishable between cultures. Language encompasses communication, ideas, customs and values, while religion often gives us specific ways to run our daily life.

Beliefs often influence behavior in several different ways. Two countries who share the same beliefs often have more trust between trading partners. Religions who share the same beliefs can enhance trust and distinguish respect quickly. Countries who share the same beliefs often have a higher trade volume. On the other hand, some countries feel trading is an ethical guideline while others view it as a “value creating activity” (Helble). Therefore, it is imperative to understand the different views on religion in international trading. Below, is an overview of the five main world religions.

Christianity

Pew Research Center (2012) tells us that their global wide study shows 84% of the world is religious and Christianity make up 32%. Christianity is known as the number one religion worldwide. Christianity remains the largest religion and is based on the Bible. Economic decisions oftern come from ideas that are stressed as “obligation of the rich toward the poor,” and “material necessity of life” (Helble). The Bible does not inhibit acquisition of wealth as long as there is worship. Early Christians were opposed to trading due to comparing it to greediness and wrong doing.

St. Thomas Aquinas was influential in identifying the role of markets with the exchange of money as long as it was completed fairly. The price of the good should reflect the value and the beliefs of both parties. Christianity ethics play a defining role with economic limitation and successes. Both Islamic and Christianity religions recognize trading in their basic beliefs as stated in the Bible and the Koran. However, Christianity does not concern itself with the equity in trade dealings.

Islam

The second largest religion in the world is Islam. Muslims, who are people who follow or practice Islam, make up 23.2% of the religion. From the Middle East to Southeast Asia, Islam has a big effect on how and when business is done. Business with Muslims must be done at certain times. The Sharia law is the ultimate legal authority which acts as the Islamic religious law. These laws provide very specific guidance. Muslims need time and setting for daily prayer. When it comes to trade, Islam views differ from Christians. There is much more concern about economic life than the Bible. The Koran, which is comparable to the Christian bible, favors trading as instrumental as producing. It inhibits deception or cheating during trade dealings. There is consensus between the Bible and Koran that material items should not come from these dealings. Parties “who wish to deal on Islamic principles should adopt choice of law provisions that incorporate the law of a country that most closely gives effect to the Sharia principles with which they are concerned” (Chuah 2006).

Hinduism

Hinduism follows behind Islam as the third largest religion in the world. It a religion based in India and follows the scriptures of Veddas which also has similarities of the Bible and Koran regarding production and other economic dealings. Hinduism declares to follow four goals of life, dharma, artha, kama, and moksha. These are interpreted as “righteousness, economic well- being, pleasure, and salvation” (Helble). The dharma is similar to the Ten Commandments. The dharma is known to change throughout a person’s life. The caste system is a structure determined by birth. Once you are born into a certain caste, it is difficult to change. If you are born poor, you will remain poor. Each caste has its own set of rules which provides the right to trade within certain groups. If these guidelines are not followed, it can effect the country as a whole. Other religions may find it hard to trade with this religion due to difficulties finding the correct traders for specific goods.

Judaism

Judaism’s origin comes from the Middle East and is one of the oldest world religions. At the center of Judaism is Torah. Torah consist of five books and is written in Hebrew, which is one of the oldest of Jewish languages. Jewish societies have always been surrounded by neighbors with different views. The Torah, however, provides framework on how to conduct business with non-Jews. In the Jewish way of life, doing business internationally has always played an important role. The Ten Commandments establishes the most imperative guidance to practical life. One rule states not to work on Sabbath or work on the seventh day. This might be interpreted as a religious duty to worship on Sunday. Two other commandments concern economic matters. One is not to steal, and the other not to take a neighbor’s possessions. In summary, Judaism does not discriminate against non-Jews and provide a strong relation for trading.

Buddhism

Buddhism marks the fourth largest religion making up 7% of the world’s religion. Buddhism began is India around “525 BC by Siddhartha Gautama, called the Buddha.” (Helble) Buddhism is more accepting of others customs and believes in coming together for the good of the people. It adapts easily to other customs which has the effect of causing many different sub-Buddhism groups to form. It does not have specific rules for economic interactions. However, they would not allow the church to collect money as a donation, but rather required the individual to give on their own in exchange for worship.

Christianity and Buddhism differ in the belief that individuals should not stand alone, but rather part of the group that sustains all beings. It is acceptable to gain wealth as long as it benefits all individuals involved to some degree. Due to many sub-Buddhism religions, there may be concerns with trusting their actions during trading.

Hindu communities do not trade much with India or Nepal. Jewish communities are biased toward Israel. Christians often trade more with Christens. It was found that sharing a religion may not outweigh a higher cost for the transaction (Helble). For Christian’s the shared belief does not always promote trading. Muslins were found to trade regardless of association except when it is regarding differential goods (Helble). Trust towards the same religion appears to be the #1 factor during trading in all cultures and religions as does religious openness (Helble). It demonstrates how our government should be open to many religions and should include cultureal aspects in order to improve overall understanding between cultures. All evidence points to that a common religion may be favored but many should be represented (Helble).

Conclusion

As discussed, religion has been shown to be a cultural stabilizer for international business and management. It is important to understand how religion operates because it is how people conduct their life. The countries who have restrictions on religion show signs of negative effects for economic growth. However, religious freedom plays a crucial role in stabilizing the relationship between trading and culture. It has also been shown that understanding each religion strengthens the relationship between countries and creates respect for their beliefs. When looking at the connection between the major religions, it is safe to argue that all religions have a set of ethical beliefs. Each religion gives its followers instructions for how human beings should act. Each religion also has rituals that are performed on a more or less of a regular basis. Christianity, Islam, and Judaism are all people of the book. All three religions were born in the Middle East and are all inseparably linked to one another. Christianity was born within the Jewish tradition while Islam developed from both Christianity and Judaism. Christians, Muslims, and Jews have similar rules and practices. Buddhist and Hindus strongly agree on reincarnation. This is an endless cycle of births and deaths that must be broken. Both religions also believe meditation is highly regarded because real spirituality is inward, not outward. When trading internationally, it is important to to stay within the the things both parties believe in. If each individual respects your Gods and your rules, there will be trust and good mutual relationship.

Citations

  1. Alon, I., & Chase, G. (2005). RELIGIOUS FREEDOM AND ECONOMIC PROSPERITY.Cato Journal, 25(2), 399-406. Retrieved from https://login.proxy.tamuc.edu/login?url=https://search-proquest-com.proxy.tamuc.edu/docview/195594463?accountid=7083
  2. Assouad, A., & Parboteeah, K. P. (2018). Religion and innovation. A country institutional approach. Journal of Management, Spirituality & Religion, 15(1), 20-37. doi:10.1080/14766086.2017.1378589
  3. Baumard, N., & Chevallier, C. (2015). The nature and dynamics of world religions: a life-history approach. Proceedings. Biological sciences, 282(1818), 20151593. doi:10.1098/rspb.2015.1593
  4. Chuah, J. C. T. (2006). Islamic principles governing international trade financing instruments: A study of the morabaha in english law. Northwestern Journal of International Law & Business, 27(1), 137.
  5. Grim, B. (2014, May 26). 7 Reasons Why Religious Freedom is Good for Business. Retrieved April 28, 2019, from https://religiousfreedomandbusiness.org/2/post/2014/05/7-reasons-why-religious-freedom-is-good-for-business.html
  6. Religion. (n.d.). Retrieved April 28, 2018, from https://www.merriam-webster.com/dictionary/religion
  7. Saiya, N. (2015). The religious freedom peace. The International Journal of Human Rights, 19(3), 369-382. doi:10.1080/13642987.2015.1032268
  8. The Global Religious Landscape. (2018, September 27). Retrieved from https://www.pewforum.org/2012/12/18/global-religious-landscape-exec/
  9. Holy Bible, New International Version, [https://www.biblegateway.com/passage/?search=Hosea+9%3A9&version=NIV], accessed 28 April 2019.
  10. Helble, M. On the influence of world religions on international trade. Retrieved from https://jpia.princeton.edu/sites/jpia/files/2006-11.pdf

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