Assignment# 01

Topic: The Strategic Implications of Religious

Institutions for International Business

Subject: International Business

Submitted to: Prof. Maham Afzal

Submitted by: Muhammad Waseem

Roll No: 17
Class: M.com 4th Semester
The Strategic Implications of Religious Institutions for International
Business:

The impact of religion on international business there are following some of

the most popular religions around the world:

Buddhism:

Gautama Buddha, born as a prince around the six century BC in India, founded
Buddhism. The basic teaching of Buddhism argues that there is no “self” or “I.”
Every person and everything in the world is assumed to be interconnected and the
impact of one’s actions affects others. Today Buddhism is very popular in Europe
and the US, although most of its followers are found in countries such as
Cambodia, China, Japan, Korea, Laos, Sri Lanka, and Thailand. MNCs operating
in Buddhist societies will find that Buddhism has strong influences on the work
environment. Buddhism is based on the philosophy that all beings are
interconnected and interdependent. Such beliefs have important bearings with
regards to how people treat each other. Buddhists see boundless compassion and
love as important goals in life. Furthermore, Buddhism provides actual practical
guidance to living according to such high ethical standards and selflessness.
Multinationals operating in Buddhist environments should be aware of the
consequences of their actions and ensure that decisions are made within such
ethical boundaries. Although Buddhism does not necessarily condemn wealth
creation and profit, multinationals nevertheless need to understand that a company
exists for the betterment of society and other beings. Buddha’s teachings suggest
that the Buddha saw poverty as the major reason for ethical behavior decline in
society. It is also important for multinationals to be aware that Buddhism
emphasizes teamwork and ethical means to achieve success at work. MNCs need
to provide the environment where workers can flourish.
Christianity:

Christianity is a faith based on the life, teachings, death and resurrection of Jesus
and is clearly the most practiced religion around the world. Christians all share the
same belief that Jesus is the incarnation of God who was sent to clean the
sinfulness of humanity. The impact on the development of capitalism of
Protestantism, a branch of Christianity developed by Martin Luther, a German
monk is seen as major evidence of the link between religion and the economic
structuring of societies. Protestantism emphasized wealth and hard work for the
glory of God and allowed the focus on goals attached to economic development
and wealth accumulation. This explained the sustained development of capitalism
in the Western Protestant societies. Multinationals are very likely to have access to
environments that encourage the conduct of business in most Christian countries.

However, despite the general support of international business and profits, MNCs
should respect Christian beliefs and values when operating in Christian countries.

Hinduism:

Hinduism is a broad and inclusive term referring to those individuals who mostly
respect and accept the ancient the quest for Brahman, the ultimate reality and truth
and the “sacred power that pervades and maintains all things” is the ultimate quest
for many Hindus. There are currently around 760 million Hindus residing in India,
Malaysia, Nepal, Surinam, and Sri Lanka. One aspect of Hinduism that is most
likely to have international business implications is the caste system, which refers
to the ordering of Indian society based on four occupational groups. The highest
caste includes the priests, followed by the kings and warriors, and merchants and
farmers. The fourth caste includes the manual laborers and artisans. Unfortunately,
the lower castes have been seriously discriminated against and many people of the
lower caste still live in poverty. A recent survey by the Indian government suggests
that around 70 percent of the Indian population is from the lower castes. MNCs
will need to be aware of caste conflicts when hiring employees.

Islam:

The essence of Islam as described in the Qur’an is the submission to the will of
Allah. Islam is currently the second largest of the world’s religions and has
adherents in countries in Africa, the Middle East, China, Malaysia the Far East. It
continues to grow rapidly in many countries, especially in Europe. Today, the
Muslim lives in a society that is heavily influenced by Islamic standards and
norms. Islam provides encompassing guidance in all spheres of life, both social
and economic. An important aspect of living in an Islamic society is the presence
of Islamic law. Islamic law is based on the Qur’an, Islam’s holy book. The Qur’an
is not necessarily a code of law. Rather, it expresses the Islamic work ethic and the
rules that should guide Muslims as they encounter situations in their daily lives.
Islam has implications for MNCs on many levels.

Judaism:

It represents an evolution of religious tradition starting with the Tanakh called the
Old Testament by Christians culminating in a compilation of Jewish law and lore
in the Talmud. Although it is difficult to discuss central tenets of the Jewish faith
several common themes can be extracted from the Torah namely the concept of
one God and love for God, the sacredness of human life and appreciation of
suffering. Like the other religions Judaism also has important implications for
international business.
Confucianism:

Confucianism refers to the school of thought developed by Chinese philosopher

Kung Fu-tzu based on ancient Chinese beliefs. From these traditional Chinese
roots, Confucius developed a religion that emphasizes moral virtues. It is crucial to
understand Confucianism as it is the dominant religion in many of the
economically advanced Asian nations such as Japan, South Korea and China.
Confucianism is also important in countries with a significant ethnic Chinese
population, such as Singapore. Confucianism has important implications for
international business.