Refining normative stakeholder theory: insights from Judaism, Christianity, and Islam

Abstract

Given the historical and ongoing influence of religion, religious faith traditions might provide a compelling and coherent normative core for stakeholder theory. This paper explores the three Abrahamic faith traditions – Judaism, Christianity, and Islam – and applies principles derived from these traditions to stakeholder theory. Our analysis of these faith traditions yields four elements of a common normative core that is germane to stakeholder theory: (1) the need to place community at the center of human activity, including business activity; (2) skepticism about economic power and its misapplication; (3) a tempering of our commitment to individual liberty as the highest normative good to be achieved by society; and (4) the dignity of the individual person and, with that, an obligation of reciprocity between the individual and society (including businesses). We then identify two current issues in stakeholder research, considering ways that the three faith traditions would advance discussion about them. We conclude by offering implications for future research.

Religiosity and corporate financial reporting: evidence from a European country

“…If we consider that business and ethics cannot reasonably be separated, and if we accept that one driver of individuals' ethical beliefs is their religious beliefs, then it seems clear that an ethically reflective workplace will include discussions of different belief systems and how they relate to the business of doing business (Ray et al 2014).…”

“…Fort (1997) argues that religious thought not only appeals to the many business leaders who follow a particular belief system but also reduces the role of self-interest, enhances moral imagination, and deepens moral wisdom. As described by Ray et al (2014), one point of cohesion among the large majority of religions is an emphasis on the needs of the community, rather than the desires of any one individual or institution within it.…”

“…Hilary and Hui (2009) further state that managerial style, corporate culture, employees' preferences, and investment behavior should all be congruent, and that it would be natural to expect that the culture of an organization is generally aligned with the local environment of the firm. From a theological view point, a key insight from religion is that each firm is considered as a part of a wider community in every place where it operates (Ray et al 2014).…”

Higher education, stakeholder interface and teacher formation for church schools

“…What is significant in his approach, which is primarily still aimed at a business readership, is the broadening of aspects of stakeholder theory into the religious domain. This is also evident in the discussion of stakeholder theory by Ray et al. (2014), who argue that the construction of principles drawn from religious faith traditions offers a compelling normative core to carry into stakeholder relations. In calling for further research, they seek more analysis on how belief systems that are manifest in the commitments of specific denominations, faith communities and religious organizations might further shape stakeholder theory.…”

Employer-Employee Relationships in Islam: A Normative View from the Perspective of Orthodox Islamic Scholars

“…While a section of these studies investigated the influence and role of general religious beliefs on the practices of individuals in workplace settings, other studies tried to understand normative teachings of different religions regarding workplace related issues and investigated the impact of these teachings on the lives of the followers (e.g., Cui et al, 2015;Parboteeah et al, 2015;Carrascoso, 2014;Findley et al, 2014;Martin & Bateman, 2014;Ray et al, 2014;Suki et al, 2014;Cleveland et al, 2013;Wilson & Hollensen, 2013;Ismaeel & Blaim, 2012;Shu et al, 2012;Uygur, 2009;Brammer et al, 2007;Essoo & Dibb, 2004;Weaver & Agle, 2002;Vogel, 2001;Porter, 1998;Dorff, 1997). One prominent section of these studies consists of work carried out to understand the normative teachings of Islam and to understand the importance and influence of these teachings on the behavior of Muslims (e.g., Jusoh et al, 2015;Basah & Yusuf, 2013;William & Zinkin, 2010;Dusuki, 2008;Dusuki & Abdullah, 2007;Farook, 2007;Beekun & Badawi, 2005).…”