The Protestant ethic — a moral code stressing hard work, rigorous self-discipline, and the organization of one's life in the service of God — was made famous by sociologist and political economist Max Weber. In this brilliant study (his best-known and most controversial), he opposes the Marxist concept of dialectical materialism and its view that change takes place through "the struggle of opposites." Instead, he relates the rise of a capitalist economy to the Puritan determination to work out anxiety over (...) salvation or damnation by performing good deeds — an effort that ultimately discouraged belief in predestination and encouraged capitalism. Weber's classic study has long been required reading in college and advanced high school social studies classrooms. (shrink)

Using a sample of Chinese listed firms in polluting industries for the period of 2008–2010, we empirically investigate whether and how Buddhism, China’s most influential religion, affects corporate environmental responsibility (CER). In this study, we measure Buddhist variables as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses. In addition, we hand-collect corporate environmental disclosure scores based on the Global Reporting Initiative (GRI) sustainability reporting guidelines. Using hand-collected Buddhism data and corporate environmental disclosure scores, (...) we provide strong and robust evidence that Buddhism is significantly positively associated with CER. This finding is consistent with the following view: Buddhism can serve as social norms to evoke the consciousness of social responsibility, and thereof strengthen CER. Our findings also reveal that the positive association between Buddhism and CER is attenuated for firms with higher law enforcement index. The results are robust to various measures of Buddhism and a variety of sensitivity tests. (shrink)

We examine the relationship between corporate governance and the extent of corporate social responsibility (CSR) disclosures in the annual reports of Bangladeshi companies. A legitimacy theory framework is adopted to understand the extent to which corporate governance characteristics, such as managerial ownership, public ownership, foreign ownership, board independence, CEO duality and presence of audit committee influence organisational response to various stakeholder groups. Our results suggest that although CSR disclosures generally have a negative association with managerial ownership, such relationship becomes significant (...) and positive for export-oriented industries. We also find public ownership, foreign ownership, board independence and presence of audit committee to have positive significant impacts on CSR disclosures. However, we fail to find any significant impact of CEO duality. Thus, our results suggest that pressures exerted by external stakeholder groups and corporate governance mechanisms involving independent outsiders may allay some concerns relating to family influence on CSR disclosure practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organisational legitimacy through CSR disclosures. The findings of our study should be of interest to regulators and policy makers in countries which share similar corporate ownership and regulatory structures. (shrink)

Research on management with regard to religion became a growing field of interest in the last decades. Nevertheless, the impact of religion on actor's economic behavior is also an old research topic, as the writings of Max Weber (The protestant ethic and the spirit of capitalism, Allen and Unwin, London, 1930) underline. The purpose of this contribution is to highlight the developments of this topic and to guide scholars to identify possible gaps. The structuring and investigation on this topic will (...) help us to advance and better understand past research, while leading to some further reflections. We conduct a citation analysis of 215 articles and 7,968 cited references to examine the citation structure and make out the most-influential publications that have shaped research most so far. On the basis of the analysis it is to be assumed that three research streams affect progress: Best practices regarding performance issues, religion at work as well as religion, and personal ethics. Finally, the publications that each topic-clusters contains are reflected and discussed to achieve a structural overview of the state of the art of research. (shrink)

This study investigates the pattern of institutional shareholding in the U.K. and its relationship with socially responsible behavior by companies within a sample of over 500 UK companies. We estimate a set of ownership models that distinguish between long- and short-term investors and their largest components and which incorporate both aggregated and disaggregated measures of corporate social performance (CSP). The results suggest that long-term institutional investment is positively related to CSP providing further support for earlier studies by Johnson and Greening (...) (1999, Academy of Management Journal 42, 564–576) and Graves and Waddock (1994, Academy of Management Journal 37, 1034–1046). Disaggregation of CSP into its constituent components suggests that the pattern of institutional investment is also related to the form which CSP takes. Investigation of the impact of investment screens on the selection of stocks suggests that long-term institutional investors select primarily through exclusion, rejecting those firms which have the worst CSP. (shrink)

Previous studies argue that religious firms are more ethical and thus engage less in accrual earnings management. At odds with the ethical view, we use a sample of Chinese listed firms and show that firms in religious regions use more real earnings management. We postulate that besides ethics, religion also proxies for risk aversion, which motivates firms to substitute accrual earnings management with real earnings management. Consistent with this view, we show that the positive association between religiosity and real earnings (...) management is more pronounced for firms with lower litigation risk and for firms with less reputable auditors. In addition, we use a mediation model introduced by Baron and Kenny :1173–1182, 1986) to show that religiosity affects earnings management through the channel of risk aversion. We conclude that firms choose real earnings management over accrual-based earnings management because of risk aversion, rather than ethical reasons. (shrink)

In the Chinese stock market, controlling shareholders often use inter-corporate loans to expropriate a great amount of cash from listed firms, through a process called “tunneling.” Using a sample of 10,170 firm-year observations from the Chinese stock market for the period of 2001–2010, I examine whether and how Buddhism, China’s most influential religion, can mitigate tunneling. In particular, using firm-level Buddhism data, measured as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses, this study (...) provides strong evidence that Buddhism intensity is significantly negatively associated with tunneling. This finding is consistent with the view that Buddhism has important influence on corporate behavior and can serve as a set of social norms and/or an alternative mechanism to mitigate controlling shareholders’ unethical tunneling behavior. In addition, my findings also reveal that the negative association between Buddhism intensity and tunneling is attenuated for firms that have high analyst coverage. The results are robust to various measures of Buddhism intensity and a variety of sensitivity tests. (shrink)

This article reviews the element of consciousness from a Buddhist and a non-Buddhist (Western) perspective. Within the Buddhist perspective, two practices toward attaining expanded and purified consciousness will be included: the Seven-Point Mind Training and Vipassana. Within the Western perspective, David Hawkins’ works on consciousness will be used as a main guide. In addition, a number of important concepts that contribute to expanded and purified consciousness will be presented. Among these concepts are impermanence, karma, non-harming (ahimsa), ethics, kindness and compassion, (...) mindfulness, right livelihood, charity, interdependence, wholesome view, collaboration, and fairness. This article may be of use to students and workforce members who consider a transdisciplinary approach on human wellbeing in personal and professional environments. (shrink)

Prior research suggests that ownership structure is associated to corporate social responsibility (CSR) in developed countries. This article examines whether and how ownership structure affects CSR in emerging markets using Chinese firms' social responsibility ranking. Our empirical evidences show that for non-state-owned firms, corporate ownership dispersion is positively associated to CSR. However, for state-owned firms, whose controlling shareholder is the state, this relation is reversed. We attribute the reversed relationship to political interferences and further test this hypothesis by demonstrating that (...) regional economic development is negatively related to CSR for state-owned firms due to decreased political interference in more developed areas. This study is the first to directly examine the relationship between the dispersion of corporate ownership and CSR in emerging markets, and our results depict that it is important to consider ownership type in assessing CSR in emerging market where state ownership is still prevalent such as China. The results also reveal that firm size, profitability, employee power, leverage, and growth opportunity affect CSR in China. (shrink)

Previous studies argue that religious firms are more ethical and thus engage less in accrual earnings management. At odds with the ethical view, we use a sample of Chinese listed firms and show that firms in religious regions use more real earnings management. We postulate that besides ethics, religion also proxies for risk aversion, which motivates firms to substitute accrual earnings management with real earnings management. Consistent with this view, we show that the positive association between religiosity and real earnings (...) management is more pronounced for firms with lower litigation risk and for firms with less reputable auditors. In addition, we use a mediation model introduced by Baron and Kenny :1173–1182, 1986) to show that religiosity affects earnings management through the channel of risk aversion. We conclude that firms choose real earnings management over accrual-based earnings management because of risk aversion, rather than ethical reasons. (shrink)

The last twenty years have been characterised by a significant shift inattitudes towards enterprise, entrepreneurship and small business.However though valued, entrepreneurs and small businesses are underincreasing pressure to be mindful of the social and moral implicationsof their activities. These developments have given the question ofbusiness ethics a central place in organisational research. Much of thisattention has been directed at the large organisation, despite the factthat the majority of businesses are small firms.A significant amount of the research in the area of (...) business ethicsis prescriptive in orientation with an underlying assumption thatenterprise and ethics are mutually exclusive, with a key aim being tobring them together. In looking at the question of ethics and enterprise(understood here as small business activity) this paper will argue thata prescriptive approach should be avoided and an alternative will beoutlined. With reference to the concept of Lebensfuhrung,translated in Weber''s The Protestant Ethic and the Spirit ofCapitalism as the "manner of leading one''s life", this paper willargue that rather than conceiving of enterprise as an activity whichneeds an infusion of ethics, enterprise is by its very nature ethical.It is ethical in the sense of advocating a particular way by which oneshould live one''s life or in the case of small business owners,presenting an account of how a small business should be owned, nurturedand developed. (shrink)

Both the spirituality in organizations and managerial issues have been addressed through different religion-based beliefs. In this article, one intends to enlarge it through the perspective of the Spiritist Doctrine (SD). Thus, it reviews the SD literature, as well as spirituality in organizations theory to find common views. In addition, it (1) argued that SD tenets, codified by Allan Kardec, also bring helpful contributions to work settings that differ from the traditional religion approaches and (2) discussed its implications to managers' (...) spiritual development. It is posited that the SD tenets, while building on and expanding Jesus Christ's teachings, disclose us some severe implications related to our future. In a broader view, SD tenets provide important warnings that encompass people work lives as well. Finally, we depict a framework that embraces corporate life coupled with some factors that may likely build and enhances one's spiritual progress, the potential spiritual rewards derived from these factors, and the loci where the rewards are enjoyed. (shrink)