In an effort to assess the latest thinking in the Roman Catholic Church on economic matters, we examine the newest encyclical by Pope Benedict XVI, Caritas in Veritate (Charity in Truth) for guidance concerning marketing and business strategy. Core ethical values, consistent with historical Catholic Social Teachings (CST), are retained. However, some important nuances are added to previous treatments, and, reflecting the mind of the current Pontiff, certain points of emphasis are shifted to account for recent global developments. Key areas (...) of consistency and differences (as we perceive them) are spelled out along with some brief commentary on the evolution of the CST position on matters of importance to business decision makers. We close our analysis with a brief discussion of how the lessons of the encyclical can be applied to selected marketing problems embedded with ethical issues, including some criteria for evaluating marketing programs. Finally, we note some editorial commentary published in the wake of the letter’s release along with our own summation. (shrink)

In contrast to the conventional fund management industry with a profit-oriented logic based on risk and return, ethical and faith-based funds should follow the religious principles of their investment-style philosophy. Islamic funds should obey the theological teachings of the primary sources of Islam, the Quran and Sunnah, as stakeholders expect these religious teachings to influence the investment decisions of fund managers. In practice, Islamic fund managers use Accounting and Auditing Organization for Islamic Financial Institutions ’s screening criteria, based on secondary (...) sources of Islam, which allow investments that are only partially halal to be included in their portfolios. This study finds that a more religious logic in screening practices, although impairing diversification, does not necessarily harm performance. Thus, Islamic investment funds, and the wider ethical fund management industry, should, and could, adopt stricter screening criteria that match their investment mandates and bring more ethical business practices to the industry. (shrink)

Management practices prevailing in business organizations receive considerable criticism for often treating the employee as one of many resources or an instrument to achieve the organization’s goals. As employee reification has so far been largely investigated in the scientific literature from the perspective of neo-Marxist approach, this article seeks to broaden the discussion by showing how social teaching of the Catholic Church can serve to solve the problem of reification. Although there is no doubt that universal norms of business ethics (...) can serve as protection of the employee dignity from the individual’s reification tendencies, moral relativism operating in postmodern life tends to call into question any universal moral norms. Therefore, this article discusses how responses to challenges posed by moral relativism can be obtained by applying methodological approaches proposed by the neo-Marxist classics Lukács, Honneth, and Catholic Social Teaching. The similarities and differences of these approaches are identified, and attention is also drawn to the possibilities and limitations of their application in business ethics practice. It is also demonstrated how understanding of human dignity and the attitude to a virtue, offered by social teaching of the Catholic Church, broadens the discussion on addressing the dangers posed by the person’s reification in organizations. (shrink)

One of the fundamental struggles in corporate social responsibility (CSR) is the uncertainty and inherent contradictions that stem from a company being an individual legal entity and a community of persons. The authors contend that CSR has departed from the essence of “social responsibility.” The paper is a commentary on CSR, presented as two frameworks rooted in individualism—The Merchant Trade (the strategic view of CSR) and The White Man’s Burden (self-righteous CSR heroism that assumes the shackles of responsibility normally offered (...) by others). Both, however, contradict the essence of “social responsibility” pitting individual against community, business against society, and economic needs and realities versus ethical reflection. The authors present a model that advocates a more moderate and realistic approach to CSR that goes back to the essence of social responsibility. (shrink)