Business Ethics: A Eur Rev. 2020;00:1–17. wileyonlinelibrary.com/journal/beer | 1 © 2020 John Wiley & Sons Ltd
1 | INTRODUCTION
Over the years, religion has played a paramount role in most soci-
eties, including in affecting the cultural context, which is strongly
influenced worldwide by religious beliefs and organizations. At the
same time, it may influence ethical practices developed by firms, ei-
ther through individuals' personal values or through its influence on
culture, leading to a set of social norms.
The theoretical base that may link different religions to the inte-
grating approach of businesses may rest on stakeholder theory. As
Retolaza, Aguado, and Alcaniz (2019) hold, this theory pays special
attention to the different social and economic factors that contrib-
ute to society, stressing that corporate management should not be
focused just on shareholders' interests, but must comprise the re-
maining stakeholders' interests, creating value for each stakeholder
in search of the common good (Argandoña, 2015; Freeman, Wicks,
& Parmar, 2004). Therefore, the final aim is to create value for each
stakeholder that contributes to the company, and not only to obtain
economic profit. Consequently, from the perspective of stakeholder
theory, considering the company as an institution that is not only
economic, but also social as well, will encourage ethical practices
inside organizations, and consideration of the impact on their envi-
ronment. In this context, religions, by sharing the same perspective,
also boost a corporate ethical vision which goes beyond purely eco-
nomic objectives and pursues the integral development of individu-
als (Cremers, 2017).
Previous works about the influence of different religions on
business ethics have evidenced that religions are expected to rein-
force ethical decision-making and the implementation of a higher
number of ethical practices. In this sense, religiosity may influ-
ence “an individual's attitudes, views, decisions, and ultimately
behaviors” (Nelson, James, Miles, Morrell, & Sledge, 2017, p. 385).
However, research conducted on the influence of religion on eth-
ical corporate practices (Craft, 2013; Loe, Ferrell, & Mansfield,
2000; O'Fallon & Butterfield, 2005; Vitell, 2009) has not reached
conclusive results, suggesting that religiosity does not directly
imply ethical behavior (Weaver & Agle, 2002). Vitell (2009) con-
cludes that there is evidence to affirm that religious people are
more prone to developing stronger ethical rules and judgments
in the business context compared to those with weaker beliefs.
Therefore, religion can be considered to have a somewhat posi-
tive relationship with corporate ethical decision-making (O'Fallon
Received: 13 September 2019
|
Revised: 10 January 2020
|
Accepted: 24 February 2020
DOI: 10.1111/beer.12277
ORIGINAL ARTICLE
An analysis of business ethics in the cultural contexts of
different religions
Isabel Gallego-Alvarez
1
| Luis Rodríguez-Domínguez
1
| Javier Martín Vallejo
2
1
Facultad de Economía y Empresa,
Department of Business Studies, Instituto
Multidisciplinar de Empresa, Universidad de
Salamanca, Salamanca, Spain
2
Facultad de Medicina, Department
of Statistics, University of Salamanca,
Salamanca, Spain
Correspondence
Luis Rodríguez-Domínguez, Facultad de
Economía y Empresa, Department of
Business Studies, Instituto Multidisciplinar
de Empresa, Universidad de Salamanca,
Campus Miguel de Unamuno, Salamanca
37007, Spain.
Email: lrodomin@usal.es
Abstract
The aim of our research is to analyze how different religions influence business ethics.
We develop an index of practices in the field of business ethics, made up of 19 items
containing practices related to workers, consumers, products, human rights, man-
agement of ethical conflicts, and crime prevention. Also, we consider a wide range
of religion affiliations. To undertake this research, we use a panel data sample com-
posed of 11,956 firm-year observations from 18 countries. Drawing on stakeholder
theory, we posit some hypotheses based on the religions considered. The results
obtained show that a higher percentage of religious adherents in the country where a
company does business usually involve the implementation of more ethical practices
in the corporate field. These findings are obtained for Christian, Islamic, Jewish, and
Hindu religions. In contrast, this does not stand for Buddhist and folk religions. Also,
countries where there is no predominant religion do not show a confluence between
religion and ethical corporate practices.