Examining Influence of Religiosity on Ethical Attitude Towards Business: Evidence from India and China

Abstract

The primary purpose of the paper is to examine how religiosity influences ethical attitude towards business and to compare and contrast this relationship for two populous Asian countries: India and China. The socio-cultural setting of both the countries resonates strongly weaved religious values and traditional ideology, though with a disparate political system. Using Attitude towards Business Ethics Questionnaire (ATBEQ) and 10-item Religious Commitment Inventory (RCI-10), data from 231, i.e., n(India)=122 and n(China)=109, respondents is collected, and research variables are compared based on gender and country of origin. Men demonstrate a higher ethical attitude towards business, higher religiosity, and higher score on ethical business philosophies than their women counterparts. Additionally, Indians score significantly higher than the Chinese on the three constructs. The results of regression analysis demonstrate that religiosity influences ethical attitude towards business for men, women, and Indians only. The relationship is not supported for China. The study further deconstructs religiosity into two subscales: intra (inner interpretive understanding) and inter (outer demonstrative action) religiosity to examine their influence on ethical attitude towards business. Individuals with higher intrareligiosity have a higher ethical attitude while no such relationship is evidenced for interreligiosity. Even further, items of ATBEQ are mapped to represent four ethical business philosophies and their differences compared on the basis of sub-constructs of religiosity. Variations in ethical business philosophies are shown by intra-religiosity only. Essentially, it is not about preaching religion, it is about practicing a religion that really matters. Freedom to practice religion, religion-based teaching, and ethical values embedded into business practices could help shape new virtue ethics as an inspiring point of reference and guidance for business leaders.