London:
The business world tends to prioritize concepts of profit maximization, economies of scale and the importance of shareholder value. As the industry has evolved over the centuries, these concepts have become deeply embedded in global financial systems.
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But some companies in certain parts of the world operate on the basis of respect all sentient beings, not just humans – especially in countries that adhere to dharmic religions such as Jainism and Hinduism (mainly in the Indian subcontinent, Southeast and Central Asia). Learning about such ways of working could help global business become more sustainable and tackle the climate crisis.
Research shows that nature has long been treated as a resource or something “outside” the economic system, which exists for the benefit of humans. But the fact that the rate of species extinction due to human activity is at least 1,000 times higher than the natural rate shows how interdependent humans and nature are. The effects of doing business on our climate are also clear: 71% of global fossil fuel emissions come from just 100 multinational companies.
Addressing this attitude towards nature in much of the business world would require a change in economic theory and belief systems to recognize the consciousness of nature all life on Earth and the need to protect other living things. This would require profound behavioral and cultural transformation to meet the environmental challenges the world is currently facing.
But economics and finance professionals often take this issue out of their equations, adding to the social and environmental devastation. The growing global green finance movement is certainly a step in the right direction, but more radical changes in financial theory are needed to address the environmental crisis and make all businesses more sustainable.
Religious inspiration
My research shows how finance can draw on certain ancient religious traditions to encourage such behavioral and cultural shifts. Indeed, there are many belief systems that do not separate nature from humanity, but rather encourage its conservation. Companies can follow such doctrines and still be successful.
Dharma, for example, is commonly understood as moral virtue and outlines a path to sustainable living. India’s dharmic religions — the Hindu, Sikh, Buddhist, and Jain belief systems — have never separated man from animals and nature. These belief systems were never anthropocentric (with humans at the center of life on Earth). Their traditions go back thousands of years and were formed long before humanity faced the existential crises we are experiencing today.
What’s even more prescient about these ancient religions, especially to the world of business and finance, is that their enduring practices are actually hiding in plain sight. Their leaders are already doing business sustainably simply because they have always seen it as the right way to go – their motivations are driven by culture, faith and tradition.
Jains, for example, have believed for thousands of years in respect for all living things, including plants and animals. The central philosophy of Jainism – one of the oldest religions in the world – is called Ahimsa and is based on non-violence in thought, word and deed.
During my research, I interviewed several prominent Jain business leaders who follow this mindset, including Vallabh Bhanshali, co-founder of Indian investment firm Enam Securities Group and Abhay Firodia, chairman of Indian automaker Force Motors and whose father is Asia’s most popular affordable means of transportation. has invented vehicle, the auto rickshaw.
For many Jains, as well as those of other Dharmic religions such as Sikhs and Hindus, philanthropy is “a duty, not a choice”. They strive to work within the nature and confines of money to practice a compassionate form of capitalism.
But this attitude is not limited to dharmic religions. Research shows that before colonization many parts of Africa benefited from strong social and communal networks of shared ownership.
And Swedish bank Handelsbanken was founded in 1871 to work organically by building trust and relationships that are local and sustainable. It provides essential financing to smaller businesses that may be neglected by big big banks.
Beyond finance
Finance has often been a destructive force in communities, society and nature. It promotes individualism and can lead to inequality rather than cooperation and income equality.
Ignorance of the variety of capitals beyond finance – culture, relationships, trust, leadership, spirituality and community capital – and their importance in building contented and harmonious societies could be addressed by looking at these other, ancient traditions. Learning about these other types of capital can help revive and increase their importance in the business world.
Faith was central to finance for thousands of years – even the City of London had 104 churches before the world wars – but it is often ignored in contemporary financial research and education. By making corporate training much more inclusive of diverse cultures and wisdoms, more industry leaders can learn to work with conscience, satisfaction and responsibility.
(Writer:Atul K. Shah, Professor, Accounting and Finance, City, University of London)
(Disclosure statement: Atul K. Shah does not work for, consult with, own shares in, or receive funding from any company or organization that would benefit from this article, and has not disclosed relevant ties outside of their academic tenure)
This article is republished from The Conversation under a Creative Commons license. Read the original article.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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