13_(227-239) The Impact on Religious.pmd


THE IMPACT ON RELIGIOUS VALUES ON BUSINESS ETHICS

IN THE CHINESE CONTEXT

Stephan Rothlin

University of International Business and Economics, Beijing, China

Abstract

China is showing impressive achievements in economic develop-

ment, especially in the area of poverty alleviation. Yet a major challenge

remains to humanize it and make it beneficial for the common good. This

would be a role for religion. Religions in China are also experiencing an

unprecedented growth in believers. And government officials are recog-

nizing their value. However, religion remains a marginal and isolated phe-

nomenon. Therefore the paper argues that the first duty of the various

religions in China would consist in overcoming a narrow-minded focus

on their own affairs and make an ecumenical, combined effort to address

pressing social issues along with all people who are rooted in religious

traditions. A especially valuable service in the Asian context would be if

religions can reconnect people to their ethical roots. The religions would

be in a unique position to assist the government in order to revive the

tradition of Confucian secular ethics with a special focus of key values of

trustworthiness, honesty, reliability and respect.

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Prajna Vihara, Volume 13, Number 1-2, January-December, 2012, 227-239 227

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Introduction

Business Ethics can be defined as the responsibility of business

enterprises for their impact on society and for the respect of core com-

munity standards. Business Ethics as a subject has been introduced as an

academic discipline in China since the 1980s. Although it is still a rela-

tively new discipline, it is estimated that 39% of Business Schools in China,

including Hong Kong and Macau, offer courses on business ethics.

The present situation in China may sometimes seem far away from

any consideration of ethics and religion. The opening of the economy

thirty years ago and the access to the World Trade Organization pro-

voked an explosive economic growth.

While acknowledging the impressive achievements of such an eco-

nomic development, especially in the area of poverty alleviation, the ma-

jor challenge remains to humanize it and make it beneficial for the com-

mon good. It becomes more and more obvious that there is a widening

gap between the rich and the poor.

In the context of a system of governance which is widely per-

ceived as atheist it may not be appropriate to put too much hope on the

impact of religions. It is true that there is an unprecedented growth in

believers. The official number of about hundred million adherents to the

five officially acknowledged religions has recently been corrected by the

research of the East Normal University in Shanghai to be closer to 300

228  Prajna Vihara
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million. Now most government officials recognize the value of religion.

However, religion remains a marginal phenomenon.

Therefore the paper argues that the first duty of religions in China

would consist in overcoming the narrow minded focus on their own af-

fairs and make an ecumenical, combined effort to address pressing social

issues along with all people who are rooted in religious traditions.

The issues which Business Ethics attempts to address and solve

are certainly major challenges. A unique achievement in the Asian context

would be if religions would use their clout and growing influence to re-

connect people to their ethical roots. Religion would be in a unique posi-

tion to assist the government to revive the tradition of Confucian secular

ethics with a special focus of key values of trustworthiness, honesty, reli-

ability and respect. In reference to important areas of Business Ethics, a

combined ecumenical effort could cause a beneficial impact on society.

An example could be the joint efforts of religious groups in Taiwan in the

area of disaster relief in the aftermath of catastrophes. A significant area

which cries for improvement is the protection of the environment. De-

spite state-of-the-art laws, widespread obsession with short term profits

has led to tendencies to cut corners and abuse natural resources.

Also the phenomenon of corruption, which seems to further en-

croach upon government and society, may ultimately undermine the very

groundwork of a society unless there is a strong combined effort to rec-

ognize the harm inflicted by a corrupt culture and to eradicate it.

The Prejudices about China

Despite a growing awareness about the overall importance of China

as a rising nation eager to take a front seat on the economic and political

world stage, there seems to be still great ignorance lingering about China,

including among academic circles. An indicator about a lack of compre-

hension of China may be recognized in a number of wide spread preju-

dices such as:

a) There is a complete absence of any morals and ethics

in China. Only money and the obsession with material

Stephan Rothlin  209



possessions seem to count;

b) Whoever ventures into China will inevitably be cheated;

c) The given political system has provoked a premature

death of all religious beliefs; and

d) There is no way to bypass widespread corruption.

Given the long isolation of China from the rest of the world it

certainly comes as no surprise that this ignorance and misunderstanding

of China still exists.

In order to break away from past stereotypes, this paper suggests

that both the implementation of the discipline of Economic Ethics as well

as an analysis of the function of religion may not only open a more clear

and original understanding of Chinese realities but may also have some

impact on the continued development of economic ethics and the func-

tion of religion.

The Concept of a State Faith and Religious Faith

As we deal with highly complex issues it seems to be necessary to

attempt to clarify the concept of religion in the context of China. I would

therefore briefly reassume the significant clarification of Prof. He Guanghu

from Renmin University. In the paper he delivered on 16 January 2012,

Prof. He Guanghu compared the concept of a “State Faith” (国家信仰 ,
“Guojia Xinyang”) with the reality in Mainland China. The meaning of

“Religious Faith” seems to be straightforward as the “the belief in a mys-

terious superhuman power”.1  The Concept of “State Faith” poses more

problems even, as He admits, to the point to be dismissed as a false issue.

A logical analysis, says He, would provide three meanings:

a) The first meaning is the State’s Faith, or the faith of

state;

b) The second meaning is the national faith, or the faith

of nationals;

c) Finally, the third meaning is the faith in the state, or

the belief in the state.

230  Prajna Vihara
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In China, ever since the founding of the People’s Republic of China,

the ninety-year old Chinese Communist Party (CCP) has been the custom

to refer to the “faith” or “belief” in Marxism or Communism. In some

limited sense the conclusion would be that Marxism or Communism with

Chinese characteristics (

中国特色社会主义 

, “zhongguo tese shehuizhuiyi”) has

become the State Faith in the last 60 years in the society of Mainland

China. However, Prof. He underlines that the so called “Faith in Marx-

ism-Leninism” or the “Belief in Communism” has been shaken by the

“loss of faith” (

(三心危机 

, “Sanxin Weiji”, i.e. the crisis of faith, trust, and

confidence) through different traumatic events of the recent history in

China such as the disaster of the “Great Proletarian Cultural Revolution”

(1966-1976). Consequently this State Faith has been fading away even if

the rhetoric has still not been abandoned by the higher state authorities.

Actually, such a state faith seems to be approaching its terminal stage.

Therefore it has to be emphasized that such a state faith is not really a

religious faith; however it attempts to regulate and exert strict control

over all the religions which are accepted as “State” religions such as Is-

lam, Buddhism, Taoism, Protestant and Catholic Christian Faith. Along

with the Imperial system inherited over centuries and dynasties, we are

faced with the paradox that the President of the PRC is simultaneously

Iman, Lama, and Pope for all these religions. A specific reason for this

paradox is that any President, who must by State Law be an atheist, and

a member of an Imperial system which promotes the State Faith of Marx-

ism-Leninism, must have control over religion and can never accept the

idea that any foreign religious authorities would have a decisive impact

on the conscience of Chinese citizens.

A remote echo of the characteristics of a state religion could be

recognized in the other remaining Communist countries such as the DPRK

and Cuba including the veneration of the “dear leader”. When it comes to

the highly complex picture of religious faith in today’s China He Guanghu

distinguishes between the religious faith in China such as the five major

religions namely Buddhism, Taoism, Islam, Protestantism, and Catholi-

cism with various folk religions and new religions. Besides the above

mentioned Marxist or Communist faith there is another non-religious faith:

the Confucian faith which is appropriately coined as a “quasi-religious

faith” given the fact that any secular set of principles cannot properly be

Stephan Rothlin  231



considered as a religion in the strict sense of the word, no matter how

zealous its supporters. Theses scholars and supporters who previously

denied its status as a relgion, now insist upon its sacred character. More

importantly, some of these supporters claim copyright over what Confu-

cianism is, when in fact their interpretation is closer to the word “con-

fused”, and bears little resemblance to the ideas of the philosopher.

The Opportunity for Inter-religious Dialogue in China

It is not the purpose of the paper to explore the richness of the

contributions to the education of values of the different religions. How-

ever, it attempts to suggest a few elements of a possible next stage of the

“State-Religion” in China given the fact that the official version of the

Marxist-Leninist version seems to be further fading away. On the other

hand, given the feudal past of China within the framework of “State-

Religions” it may be illusionary to imagine religions completely detached

from the reach of the State. However, as the faith in Marxism-Leninism

declines there is a whole new awakening of a sense for truth, values and

also religious beliefs. According to the research of Rodney Stark and

Byron Johnson (who are distinguished professors of the social sciences)

as well as Carson Mencken (who is professor of sociology at Baylor

University) it seems “entirely credible to estimate that there are about 70

million Chinese Christians in 2011.”2  It is not the place to further discuss

the complexities and reliability of statistical data in China. However, we

are on safe ground, based on multiple other research __ most prominently

by East China Normal University __ that actually all the major religions

have experienced dramatic growth since the opening up of the economy

in China in 1978 and the total number of believers in religion would not

amount to around 100 million, the number usually cited in official statis-

tics, but rather around 300 million.

The paper argues that the dialogue between not only religious

individuals but between different religions, could be extremely beneficial

in some crucial areas of ethics. This is not self evident. The obvious spiri-

tual vacuum in the wake of historic events such as the so called “Great

Proletarian Cultural Revolution” (1966-1976) and other traumatic col-

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lective experiences may also provoke a mere attitude of competition be-

tween various providers of religious insights. It is sometimes striking how

underdeveloped an ecumenical spirit of dialogue is even in liberal societ-

ies like Taiwan which never experienced such restrictions. The various

religious groups, are narrowly focused on their own interests and often

see other groups and movements as competitors. This is all the more

tragic and ironic as the values enshrined in different religious traditions

may have an important contribution to pressing social problems such as

the deterioration of the environment, corruption, unhealthy working con-

ditions, etc.

“State Religion” and the closed and Open Door Policies

It is important to recognize the historical heritage behind the in-

stitutional form of a State Religion in China. The political system of a

given dynasty was always crucial in the question whether or not a religion

was welcome. An example is the gain in popularity of Islam and Chris-

tianity during the Yuan Dynasty of the Mongol Rulers (1278-1368). With

an expanding of trade with other countries came not only the travels of

Marco Polo visiting Kublai Khan but also the beginning of a rule of law

based on universal principles.

The closed door policy in Maoist China between 1949 until 1976

gave way, after the turbulent chaos of the gang of four, to the so-called

“open door policy” with its focus on economic development. According

to the latest recommendations from the World Bank, this approach to

economic development needs to be significantly revised as it became clear

that the price of economic success has been quite often a heavy deteriora-

tion of the natural environment. More specifically shortages of water,

exacerbated by frequent droughts, have become one of the most pressing

problems.

In recent history of China I would like to highlight the aftermath

of the Sichuan earthquake which happened on May 12, 2008. Given the

fact that the catastrophe provoked an unprecedented outpouring of mu-

tual help involving also many NGOs and religious groups, some critical

journals such as Southern Weekend 

南方周末 

 (“Nanfang Zhoumo”) hailed

Stephan Rothlin  233



this event as the beginning of a civil society in China. In fact, never before

have the contributions to charitable institutions so dramatically increased

in China. It is, however, also intriguing to note that these philanthropic

contributions dropped significantly in 2009. Instead of the hope that NGOs

and religious institutions could supplement the remarkable efforts from

the government, it became obvious to the public that most of the contri-

butions ended up in the pockets of the government officials.

The aftermath of the Sichuan earthquake is however only one

event which indicates the emergence of a true civil society in China.3 In

the further development of a civil society the religion may play a signifi-

cant role. It is certainly not without an irony that first missionaries such as

Matteo Ricci (1552-1610) and Johann Adam Schall von Bell (1592-1666)

revealed a face of religion which is precisely not hostile to human reason

but actually complementary to modern science. While missionaries of later

centuries did not find such grace in the eyes of Chinese historians as they

have been portrayed (sometimes unjustly) as puppets of colonial powers,

these earlier pioneers of cultural exchange between Europe and China

are seen in a positive light due to their efforts to enter into dialogue with

Chinese culture and language. Such a view concerning the function of the

historical role religion is in line with some contemporary philosophical

research which has come to see religion as a partner of the Enlighten-

ment.4 Prof. Hermann L?bbe is arguing that the freedom of liberal societ-

ies requires the foundation of a politically and legally free religion. Going

back to the development and specific situation in China we may indeed

argue that it is certainly not appropriate to impose Western political mod-

els on China. However, given the rise of a civil society in China the thorny

question remains: Is it time to adjust the role of the religions to a more

rational approach? Prof. He Guanghu reaches an important conclusion:

“True religious faith should relativise all the worldly things and affairs,

including the state”. (loc.cit., 24). This implies that “State Religion” es-

pecially when related to distorted ideas concerning patriotism, could stag-

nate religion and prevent any potential benefit to society. Therefore the

view adopted during the closed door of the Maoist period, in which reli-

gion has been perceived as incompatible with the state, needs radically to

be changed into a modern understanding where religion within the frame-

work of the state and respecting the laws of the state may become a

234  Prajna Vihara
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trusted partner of the state.

Therefore in order to regain the trust from a partner who has

clearly been an enemy in the past, the cooperation among all the religions

needs to focus on a cooperation in those critical areas where the state is

most vulnerable such as values, education, integrity, honesty, truthful-

ness, respect for the dignity of each person, and the fight against corrup-

tion.

Business Ethics and the Combined Response from Religions

The new academic subject of Business Ethics, with its 50 plus

years of history, has gained growing prominence in business schools in

China including Hong Kong and Macau. The focus of this applied field of

ethics lies in offering analysis and guidance in dilemmas and ethical prob-

lems business people face particularly in situations where the tradition of

law is rather weak. Virtue ethics as an inspiration for sound and good

individual and social behavior seems still largely underdeveloped. Given

the broad impact of ethics not only on the micro- and meso-level but also

on the macro-level of the economy some languages including the Chinese

one prefer the term “Economic Ethics” (

经济伦理学 

 “jingji lunlixue” in Chi-

nese, “Wirtschaftsethik” in German) over “Business Ethics”. The main

areas of this field of applied ethics are the protection of the environment,

a commitment to healthy working conditions, accountability and trans-

parency in governance and financial dealings, the fight against corrup-

tion, and whistle-blowing as a way to voice legitimate grievances. Such a

challenge is often answered with considerable cynicism. Within the popu-

lar cynical world-view corruption seems to be so ingrained, the abuse of

natural resources (in contrast to solemn official declarations to the con-

trary) so rampant, and boundless greed and nonsense so widespread, that

any serious attempt to instill a sense of honesty and decency in the busi-

ness world seems to be a priori doomed to failure. It is still not fully taken

into account that ongoing financial crises may well provoke even much

more devastating consequences for the whole global system.

The Chinese government, including one of its main educational

institutions, the Central Party School, seems to pay greater attention to

Stephan Rothlin  235



Business Ethics. In the wake of the milk and product safety scandals, the

need for a more pragmatic approach to sound and ethical business prac-

tices has been repeatedly raised by the current Prime Minister Wen Jiabao.

The term “Dignity” actually emerged as Chinese equivalent to “Human

Rights”, and involved the commitment of business to make sure that safe

working conditions, regular pay, fair competition, and the fight against

corruption are safeguarded and regularly policed.

In order to enhance a value system that can lead to significant

change in business practices, a renewed ecumenical approach of inter-

religious cooperation is required, one which can overcome the more  pa-

rochial narrow mindedness. Given their strong tradition of shaping uni-

versal human values it would be a significant combined effort which would

focus on reconnecting the Chinese people from different generations wtih

their rich but largely unknown ethical treasures of wisdom, especially

Confucian Ethics. Business Ethics __ not only in the Chinese context __ is

built upon a secular framework of values such as trustworthiness, hon-

esty, and respect.

Apparently the dialogue between Buddhist and Christian tradi-

tions has been fruitful by inspiring a genuine social commitment based on

the shared value of compassion. For example, in the wake of natural di-

sasters religious groups earned much respect by joining hands together in

order to offer concrete help and relief.

Another connotation of “Dignity” in the context of business is the

struggle to recognize in each human being the right to be protected from

any harm. Therefore religious sensitivity for human life (starting from its

very beginning) would be likely to pay a continuous attention to main

issues of Business Ethics which tend to be overlooked: the much needed

drive to make sure that the brutality of working conditions in sweatshops

(the recent string of suicides among factory workers of Foxconn may be

just the tip of the ice-berg), wide spread child labor, human trafficking

etc. will be abolished and give way to a more human approach to an

economics and management. Actually, even after the latest financial cri-

ses, over simplified concepts of “Homo Oeconomicus”, with its obses-

sion with profit maximization and cost-cutting, seem to prevail in most

business education.

Religious groups are able to link like minded business people to-

236  Prajna Vihara
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gether in associations, social groups, and networks which continue to

inspire and support each other to stick to their commitment to a sound

and ethical way to do business.

Based on the author’s empirical evidence, it appears that business

leaders whose values have been shaped by religion are likely to undertake

serious steps to implement Business Ethics principles by developing vi-

able ethical codes in their firms and institutions.

Religions often inspire their adherents to detach themselves from

a culture of lies and struggle to find the truth. This may well lay the ground-

work to shift a business focus from an exclusive concern for its excellent

public image towards an attitude which would be open to a thorough

investigation if there is any evidence that basic ethical principles have

been violated. “The truth will set you free”, a key message of the Gospel

of Saint John in the Christian tradition certainly strongly resonates in the

traditions of Islam, Buddhism, and Taoism. Hence, the search for truth-

fulness and trustworthiness may be a decisive factor to truly implement a

requirement of the Chinese labor law to install a mechanism for “whistle-

blowing” in each firm, which means that each employee would have insti-

tutional channels to share his or her grievances to an ombudsman who

would be entitled to investigate a given case while making sure that the

confidentiality of the whistle-blower is safeguarded.

Given the fact that corruption seems to deteriorate seriously in

China (see the findings of the Anti-Corruption Report by the former Su-

preme Judge, Xiao Yang6 as well as the rankings of the German based

group Transparency International) it appears na?ve to pin all the hopes a

change on compliance only, with occasional crackdowns. The threat of

harsh punishments certainly has limited merit. However, an ever more

decisive source for such a change in human values are the various reli-

gious traditions and what they are ready to offer. The dynamic growth of

different religious traditions in contemporary China may indicate a long-

ing for a certain purity of life not provided by other sources.

The strong ethical tradition in different religions could help shape

a new virtue ethics as an inspiring point of reference and guidance for

business leaders who would like to create pragmatic ethical cultures which

would be a decisive factor for the economic development in China. The

Christian tradition with its focus on solidarity, subsidiarity, and the atten-

Stephan Rothlin  237



tion to the common good may thus not only be a key reference in the

dialogue with other religions but also offer key insights for economic and

human development.

Conclusion

Religion has often been perceived as an enemy of the State. In the

particular case of China, within the framework of a “State Religion”, a

more mature understanding of the character of religion may emerge in

the process of the birth of an authentic civil society in China. This will be

a necessary complement to the efforts to make the economic open door

policy since 1978 more sustainable. The cooperation of different reli-

gions as true partners may lay a necessary further foundation for a further

growth of the rule of law and civil society. China has achieved great

progress in the area of law. This is often not sufficiently acknowledged.

However, the tradition of the rule of law still risks being rather weak in

some layers of the society. Therefore a combined effort of religions may

contribute to shape a new value-driven economy, including a firm com-

mitment against corruption.

Endnotes

1He, G..(2009), “Religion”, in Ren J. (ed.) A Dictionary of Religion, Shang-

hai: Dictionary Press.
2Counting China’s Christians. There are as many Christians in China as

there are members of the Communist Party, article retrieved from www.firstthings.com

on May 29, 2011.
3The civil society in China, report submitted by the Center for International

Business Ethics for the Commission of the European Union, 2010.
4Lü bbe, H. (1986). Religion nach der Aufkl

ä 

rung (“Religion After the En-

lightenment”), Graz, Vienna, Cologne: Styria.
5Xiao, Y. (2009). Anti-Corruption Report, Beijing: Law Press China.

238  Prajna Vihara
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References

He, G..(2009), “Religion”, in Ren J. (ed.) A Dictionary of Religion, Shang-

hai: Dictionary Press.

The civil society in China, report submitted by the Center for Interna-

tional Business Ethics for the Commission of the European Union,

2010

L?bbe, H. (1986). Religion nach der Aufkl

ä 

rung (“Religion After the En-

lightenment”), Graz, Vienna, Cologne: Styria.

Xiao, Y. (2009). Anti-Corruption Report, Beijing: Law Press China

(

反贪报告 

, “fantan baogao”).

Stephan Rothlin  239