John Paul II And The World Economic Order
By Rafael Termes
Following the line of all his predecessors, Pope John Paul II declared more than once that "the Church does not propose economic and political systems or programs, nor does she show preference for one or the other, provided that human dignity is properly respected and promoted, and provided she herself is allowed the room she needs to exercise her ministry in the world".
"The Church's social doctrine," the Pope concludes, "is not a 'third way' between liberal capitalism and Marxist collectivism, nor even a possible alternative to other solutions less radically opposed to one another: rather, it constitutes a category of its own. Nor is it an ideology, but rather the accurate formulation of the results of a careful reflection on the complex realities of human existence, in society and in the international order, in the light of faith and of the Church's tradition.
"Its main aim is to interpret these realities, determining their conformity with or divergence from the lines of the Gospel teaching on man and his vocation, a vocation which is at once earthly and transcendent; its aim is thus to guide Christian behavior. It therefore belongs to the field, not of ideology, but of theology and particularly of moral theology." And where is this Social Doctrine of the Church to be found? In all its centuries-long Magisterium.
In the encyclical Sollicitudo rei socialis, the Pope addresses the problem of the foreign debt of developing countries, which he regards as one of the specific indicators of underdevelopment. The Pope calls upon the experts to seek solutions to that problem in light of ethical principles.
An equally constant tradition of the Magisterium is that the right to private property, recognized as having a natural character, "is not an absolute right" -in the words of Centesimus Annus- as its limits are inscribed in its very nature as a human right. Yet it was precisely John Paul II who, in Sollicitudo rei socialis, explicated the connection that exists between, on the one hand, the abstract legacy that God, at the origin, granted in favor of all men, by giving them dominion over all the things of the earth, and on the other, the necessary regime of private property.
Another important aspect of John Paul II's thought on economic matters has to do with work. Work is a subject to which he devotes long sections of Laborem Exercens, where, near the beginning, he states, "The Church is convinced that work is a fundamental dimension of man's existence on earth".
But what is new about John Paul II's thought on the subject of work becomes apparent when he makes us realize the difference there is between work in an objective sense and work in a subjective sense. Thus, in section 5 of Laborem Exercens, he tells us, "This universality and, at the same time, this multiplicity of the process of 'subduing the earth' throw light upon human work, because man's dominion over the earth is achieved in and by means of work".
The fact is that, although work in a subjective sense escapes that law and although the one who works, whatever the worth of the things he produces, must be valued as befits the dignity of the human person, there is nothing to stop the product of work from being valued, that is, paid for, according to the criteria that determine the just price of things.
John Paul II concludes, "The key problem of social ethics in this case is that of just remuneration for work done". And he stresses, "wages, that is to say remuneration for work, are still a practical means whereby the vast majority of people can have access to those goods which are intended for common use: both the goods of nature and manufactured goods. [...] Hence, in every case, a just wage is the concrete means of verifying the justice of the whole socioeconomic system".
The conclusion we can draw from these words of John Paul II is that those of us who think that, economically speaking, the free market system is the best of all possible systems must do all we can to rid it of the pernicious effects that, according to John Paul II, would make it unacceptable.
This article, extracted from the speech of the same title given by Rafael Termes on the occasion of the 25th anniversary of John Paul II's papacy, was published in "La Gaceta de los Negocios", 14/04/05 in Spanish.
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Following the line of all his predecessors, Pope John Paul II declared more than once that "the Church does not propose economic and political systems or programs, nor does she show preference for one or the other, provided that human dignity is properly respected and promoted, and provided she herself is allowed the room she needs to exercise her ministry in the world".
"The Church's social doctrine," the Pope concludes, "is not a 'third way' between liberal capitalism and Marxist collectivism, nor even a possible alternative to other solutions less radically opposed to one another: rather, it constitutes a category of its own. Nor is it an ideology, but rather the accurate formulation of the results of a careful reflection on the complex realities of human existence, in society and in the international order, in the light of faith and of the Church's tradition.
"Its main aim is to interpret these realities, determining their conformity with or divergence from the lines of the Gospel teaching on man and his vocation, a vocation which is at once earthly and transcendent; its aim is thus to guide Christian behavior. It therefore belongs to the field, not of ideology, but of theology and particularly of moral theology." And where is this Social Doctrine of the Church to be found? In all its centuries-long Magisterium.
In the encyclical Sollicitudo rei socialis, the Pope addresses the problem of the foreign debt of developing countries, which he regards as one of the specific indicators of underdevelopment. The Pope calls upon the experts to seek solutions to that problem in light of ethical principles.
An equally constant tradition of the Magisterium is that the right to private property, recognized as having a natural character, "is not an absolute right" -in the words of Centesimus Annus- as its limits are inscribed in its very nature as a human right. Yet it was precisely John Paul II who, in Sollicitudo rei socialis, explicated the connection that exists between, on the one hand, the abstract legacy that God, at the origin, granted in favor of all men, by giving them dominion over all the things of the earth, and on the other, the necessary regime of private property.
Another important aspect of John Paul II's thought on economic matters has to do with work. Work is a subject to which he devotes long sections of Laborem Exercens, where, near the beginning, he states, "The Church is convinced that work is a fundamental dimension of man's existence on earth".
But what is new about John Paul II's thought on the subject of work becomes apparent when he makes us realize the difference there is between work in an objective sense and work in a subjective sense. Thus, in section 5 of Laborem Exercens, he tells us, "This universality and, at the same time, this multiplicity of the process of 'subduing the earth' throw light upon human work, because man's dominion over the earth is achieved in and by means of work".
The fact is that, although work in a subjective sense escapes that law and although the one who works, whatever the worth of the things he produces, must be valued as befits the dignity of the human person, there is nothing to stop the product of work from being valued, that is, paid for, according to the criteria that determine the just price of things.
John Paul II concludes, "The key problem of social ethics in this case is that of just remuneration for work done". And he stresses, "wages, that is to say remuneration for work, are still a practical means whereby the vast majority of people can have access to those goods which are intended for common use: both the goods of nature and manufactured goods. [...] Hence, in every case, a just wage is the concrete means of verifying the justice of the whole socioeconomic system".
The conclusion we can draw from these words of John Paul II is that those of us who think that, economically speaking, the free market system is the best of all possible systems must do all we can to rid it of the pernicious effects that, according to John Paul II, would make it unacceptable.
This article, extracted from the speech of the same title given by Rafael Termes on the occasion of the 25th anniversary of John Paul II's papacy, was published in "La Gaceta de los Negocios", 14/04/05 in Spanish.
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Latin America's Work-Family Imbalance
By Santificarnos.com
Contrary to popular belief, companies in Latin America face the same need to help their employees reconcile work and family life as their European and U.S. counterparts. This is the conclusion of the IFREI (IESE Family-Responsible Employer Index) study, prepared by Professor Nuria Chinchilla and researchers Consuelo León and Anaïs Maya Hendriks.
The studied is based on companies in Brazil, Uruguay, Peru, Ecuador, Colombia, Guatemala and Mexico, and was produced in collaboration with the following business schools: Instituto Superior da Empresa (Brazil), Instituto de Alta Dirección Empresarial (Colombia), Instituto de Desarrollo Empresarial (Ecuador), Escuela de Negocios Universidad del Istmo (Guatemala), Instituto Panamericano de Alta Dirección de Empresa (Mexico), Escuela de Dirección de la Universidad de Piura (Peru), and Instituto de Estudios Empresariales de Montevideo (Uruguay)
The responses given by the companies surveyed suggest that the cliché of South American dolce far niente is entirely misleading. In fact, workaholism is widespread. More than half the companies expect employees to take work home with them.
A Heterogeneous World
The countries of Latin America are too heterogeneous to allow sweeping generalizations. The vast territory stretching from Rio Grande to Tierra del Fuego encompasses a wide diversity of habitats, education systems, natural resources and production systems. The proportion of mixed race, indigenous or African-American people in the overall population also varies dramatically from one country to another. It would be a mistake, therefore, to lump them all together.
Brazil is a particularly atypical case. It has 42 percent of the landmass and 33 percent of the population, and boasts a different language from almost all the other nations. Also, though an emerging world power, it carries only a very limited weight in the concert of Latin American nations, many of which languish near the bottom of the world's human development league tables.
Despite their great diversity, the countries of Latin America have two things in common which, beyond geographical proximity, give them a degree of human and cultural cohesion: Roman Catholicism and language. Another affinity is respect for the family, which obviously exerts a significant influence on any effort to balance work and family life. Of the Brazilian companies included in the study, for example, 88 percent cite respect for the family as part of their corporate culture.
The family plays a fundamental role in every society, but in societies with only a rudimentary social safety net, such as many Latin American countries, it is the only institution that can afford protection against unemployment, illness and migration. As an economist might put it, in these countries, the family represents a vital stock of social capital.
Diverse Legislation
And yet, the Latin American family is not immune to the pressures besetting the family in other parts of the world. While the nuclear family still predominates, the number of female single parent households continues to rise. The result is widespread exhaustion among the female population and poverty in society at large.
In Latin America, as elsewhere, women have started to join the paid workforce on a massive scale. Between 1990 and 2002 the female employment rate in urban areas (in the countries studied) rose from 37.9 al 49.7 percent. As almost everywhere, though perhaps more markedly than in Europe, the increase in the number of women taking paid employment outside the home has not been accompanied by a corresponding increase in male participation in domestic chores. As a result, the full burden has fallen on women.
At the same time, work-family reconciliation measures are not yet widely accepted by Latin American companies. There is no comparison to Europe, except on the most basic level, such as statutory maternity leave (which varies from 12 to 16 weeks, with some countries requiring that at least half be taken after the birth). Time off for breast-feeding is guaranteed in all countries, and in Peru the law stipulates that for six months the daily breast-feeding break "may not be replaced with extra pay or compensated in any other way."
Another feature found in the legislation of all the countries is an emphasis on the provision of kindergartens in the workplace. This no doubt has a lot to do with the high birth rate (averaging three times higher than in Spain). Brazil, for instance, requires all companies with more than 29 employees over the age of 16 to have kindergartens; in Guatemala the threshold is 30 employees; and in Ecuador, 50 employees, male or female.
Nevertheless, a great deal remains to be done before work-family measures become universal in Latin American companies. In Brazil and Mexico only 20 percent of companies have work-family policies in place, 15 percent in Uruguay and 13 percent in Colombia. In Ecuador such policies are found in 12 percent of companies, in Guatemala in 9 percent, and in Peru in just 6 percent of companies.
More than half the companies that responded to the surveys say that they have no work-family reconciliation policies, and between 20 and 35 percent say they have such policies, but have not implemented them. What's more, a far from negligible proportion of the companies that have actually implemented work-family measures say that employees do not take advantage of them.
By contrast, the main demands of employees with respect to flexibility policies focus on days off and short vacations or leave for emergencies, time off for training, and flexible working hours.
According to the authors of the IFREI report, Latin America is one of the regions of our planet most likely to see major social changes in the coming decades. Many Latin American countries still need to develop a middle class, which today simply does not exist. Also, career and development opportunities in this continent of almost 600 million inhabitants need to be expanded. Against this background, measures to reconcile work and family life are urgently needed. It would be best to start right now.
Click here to return to homepage
Contrary to popular belief, companies in Latin America face the same need to help their employees reconcile work and family life as their European and U.S. counterparts. This is the conclusion of the IFREI (IESE Family-Responsible Employer Index) study, prepared by Professor Nuria Chinchilla and researchers Consuelo León and Anaïs Maya Hendriks.
The studied is based on companies in Brazil, Uruguay, Peru, Ecuador, Colombia, Guatemala and Mexico, and was produced in collaboration with the following business schools: Instituto Superior da Empresa (Brazil), Instituto de Alta Dirección Empresarial (Colombia), Instituto de Desarrollo Empresarial (Ecuador), Escuela de Negocios Universidad del Istmo (Guatemala), Instituto Panamericano de Alta Dirección de Empresa (Mexico), Escuela de Dirección de la Universidad de Piura (Peru), and Instituto de Estudios Empresariales de Montevideo (Uruguay)
The responses given by the companies surveyed suggest that the cliché of South American dolce far niente is entirely misleading. In fact, workaholism is widespread. More than half the companies expect employees to take work home with them.
A Heterogeneous World
The countries of Latin America are too heterogeneous to allow sweeping generalizations. The vast territory stretching from Rio Grande to Tierra del Fuego encompasses a wide diversity of habitats, education systems, natural resources and production systems. The proportion of mixed race, indigenous or African-American people in the overall population also varies dramatically from one country to another. It would be a mistake, therefore, to lump them all together.
Brazil is a particularly atypical case. It has 42 percent of the landmass and 33 percent of the population, and boasts a different language from almost all the other nations. Also, though an emerging world power, it carries only a very limited weight in the concert of Latin American nations, many of which languish near the bottom of the world's human development league tables.
Despite their great diversity, the countries of Latin America have two things in common which, beyond geographical proximity, give them a degree of human and cultural cohesion: Roman Catholicism and language. Another affinity is respect for the family, which obviously exerts a significant influence on any effort to balance work and family life. Of the Brazilian companies included in the study, for example, 88 percent cite respect for the family as part of their corporate culture.
The family plays a fundamental role in every society, but in societies with only a rudimentary social safety net, such as many Latin American countries, it is the only institution that can afford protection against unemployment, illness and migration. As an economist might put it, in these countries, the family represents a vital stock of social capital.
Diverse Legislation
And yet, the Latin American family is not immune to the pressures besetting the family in other parts of the world. While the nuclear family still predominates, the number of female single parent households continues to rise. The result is widespread exhaustion among the female population and poverty in society at large.
In Latin America, as elsewhere, women have started to join the paid workforce on a massive scale. Between 1990 and 2002 the female employment rate in urban areas (in the countries studied) rose from 37.9 al 49.7 percent. As almost everywhere, though perhaps more markedly than in Europe, the increase in the number of women taking paid employment outside the home has not been accompanied by a corresponding increase in male participation in domestic chores. As a result, the full burden has fallen on women.
At the same time, work-family reconciliation measures are not yet widely accepted by Latin American companies. There is no comparison to Europe, except on the most basic level, such as statutory maternity leave (which varies from 12 to 16 weeks, with some countries requiring that at least half be taken after the birth). Time off for breast-feeding is guaranteed in all countries, and in Peru the law stipulates that for six months the daily breast-feeding break "may not be replaced with extra pay or compensated in any other way."
Another feature found in the legislation of all the countries is an emphasis on the provision of kindergartens in the workplace. This no doubt has a lot to do with the high birth rate (averaging three times higher than in Spain). Brazil, for instance, requires all companies with more than 29 employees over the age of 16 to have kindergartens; in Guatemala the threshold is 30 employees; and in Ecuador, 50 employees, male or female.
Nevertheless, a great deal remains to be done before work-family measures become universal in Latin American companies. In Brazil and Mexico only 20 percent of companies have work-family policies in place, 15 percent in Uruguay and 13 percent in Colombia. In Ecuador such policies are found in 12 percent of companies, in Guatemala in 9 percent, and in Peru in just 6 percent of companies.
More than half the companies that responded to the surveys say that they have no work-family reconciliation policies, and between 20 and 35 percent say they have such policies, but have not implemented them. What's more, a far from negligible proportion of the companies that have actually implemented work-family measures say that employees do not take advantage of them.
By contrast, the main demands of employees with respect to flexibility policies focus on days off and short vacations or leave for emergencies, time off for training, and flexible working hours.
According to the authors of the IFREI report, Latin America is one of the regions of our planet most likely to see major social changes in the coming decades. Many Latin American countries still need to develop a middle class, which today simply does not exist. Also, career and development opportunities in this continent of almost 600 million inhabitants need to be expanded. Against this background, measures to reconcile work and family life are urgently needed. It would be best to start right now.
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How World Religions View Business Ethics
By Santificarnos.com
Judaism, Christianity, Islam, Hinduism, Buddhism, Confucianism, Taoism and Shinto... these are the world's eight major religions. Each has its own organized system of beliefs, ceremonies and worship, and each offers prescriptions for positive endeavor in both life - and in business.
Today, most business ethics textbooks present philosophical - not religious - approaches to business. "This may be because in many countries there is a strongly secularized culture, and religion is considered irrelevant for business in the public sphere," says Prof. Domènec Melé, who is the head of IESE's Business Ethics Department.
Melé argues that it makes good sense to study business ethics' religious roots, for many reasons. For example, centuries before there was any philosophical approach to business, religions had already offered norms of conduct and values to business people. Also, many believers want to know how they can translate their religion's vision into the business environment. Moreover, religious ethics provides a set of consistent and reasonable statements regarding business. It's a different approach that provides new horizons for thinking. Also, in our global world, business means dealing with people of different religions, and ignoring or misinterpreting religious ethical approaches can cause serious problems.
Melé's argus his points in the article "Religious Foundations of Business Ethics," where discussion begins with the three great monotheistic religions: Judaism, Christianity and Islam, in which the relationship between creature and creator is of paramount importance.
Melé then turns to the five religions based on ancient Asian cultures, which "root the way of life in ancient and frequently wise traditions." Prof. Melé briefly describes each religion and its history, and then explores its ethics and, more specifically, business ethics.
Judaism, which has 15 million adherents, started with the original Covenant made between God and Abraham around 1900 B.C. The main source for understanding business ethics in Judaism is the Torah. Writes Melé, "The legitimacy of business activity and profit, conducted within a framework of religious and ethical norms, is one of the guiding principles for business ethics highlighted in the Jewish tradition." In Judaism, work, including manual work, is held in great esteem, like a sort of human partnership with the divine.
Christianity is the religion with the most adherents, at 2 billion (970 million Roman Catholics; 220 million Eastern Orthodox; 385 million Protestants; 275 million others). Jesus of Nazareth, or Jesus Christ, born 2,000 years ago, is the central figure in Christianity. In his parables, Jesus makes positive mention of several businessmen who tried to make profits, but he warns against greed, an excessive anxiety toward future needs, and in serving money instead of serving God. Human dignity and concern and love for persons are crucial in Christianity. This religion also stresses a sense of justice in business, such as the strict observance of contracts, observing regulations and working for the sake of the common good.
Islam, with more than 1 billion practitioners, is the second largest religion in the world and growing. The history of Islam started with Muhammad, who was born in Mecca around A.D. 570. Muhammad believed in one God, Allah, and recorded his divine revelations in the Koran. Several Islam business scholars agree that a central concept of the religion is tawhid, or unity with God. Life is unified because it provides the practical way to pattern all facets of human life in accordance with God's will. Business is included and should be run according to the laws of nature dictated by God.
Hinduism, the first of the five religions based on ancient Asian cultures, is a cluster of religious traditions that evolved in India between 3,000 and 1,500 B.C. Today, there are about 780 million Hindus, mainly living in India. More than a theological system, Hinduism is an approach to the universe. When it comes to business, Melé makes two observations: Hinduism has a positive attitude towards business and creating wealth, yet wealth is not the supreme goal. Ethics (dharma) and salvation (moksha) are more important.
Buddhism, based on the teachings of Siddhartha Gautama, called "Buddha" or "the enlightened one," began in India around 560 B.C., and searches to find relief for human suffering. In business, Buddhists search for the "right livelihood" and are generally against companies that do not care for the environment or that abuse animals.
Confucianism, one of the three traditional religions of China, along with Taoism and Buddhism, is based on the teachings of Confucius during 5th and 6th century B.C. Approximately 5 million people practice the religion. According to Confucius, "A gentleman takes as much trouble to discover what is right as lesser men take to discover what will pay." Profit is acceptable as long as it is acquired with righteousness.
Taoism coexists with Confucianism in China. It seeks to promote the inner peace of individuals and harmony with their surroundings. "Tao" could be translated as "path" or "the way." It's like a force that flows through life and pervades all things. In business, Taoism encourages companies to nourish people, and the aim should not be personal success or gain, but the common good. According to "Tao Te Ching", chapter 9, "Fill your bowl to the brim and it will spill... Do your work, then step back."
Lastly is Shinto, which is inextricably tied to the origin and development of Japan. The word derives from the Chinese words shin tao (the ways of gods). Started in 500 B.C., the religion focuses on the worship of the kami, a host of supernatural and mysterious beings (natural deities) that can be known through forms, such as objects of nature, or abstract creative forces just as justice or remarkable people. In business, Shinto emphasizes benefits for the group, which is like a family.
Understanding how the world's religions approach business ethics encourages tolerance and understanding. Writes Melé, "A deeper knowledge of religious business ethics might bring about a better understanding of people worldwide. It can also facilitate a more intense dialogue between different religions and between religious and philosophical approaches."
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Judaism, Christianity, Islam, Hinduism, Buddhism, Confucianism, Taoism and Shinto... these are the world's eight major religions. Each has its own organized system of beliefs, ceremonies and worship, and each offers prescriptions for positive endeavor in both life - and in business.
Today, most business ethics textbooks present philosophical - not religious - approaches to business. "This may be because in many countries there is a strongly secularized culture, and religion is considered irrelevant for business in the public sphere," says Prof. Domènec Melé, who is the head of IESE's Business Ethics Department.
Melé argues that it makes good sense to study business ethics' religious roots, for many reasons. For example, centuries before there was any philosophical approach to business, religions had already offered norms of conduct and values to business people. Also, many believers want to know how they can translate their religion's vision into the business environment. Moreover, religious ethics provides a set of consistent and reasonable statements regarding business. It's a different approach that provides new horizons for thinking. Also, in our global world, business means dealing with people of different religions, and ignoring or misinterpreting religious ethical approaches can cause serious problems.
Melé's argus his points in the article "Religious Foundations of Business Ethics," where discussion begins with the three great monotheistic religions: Judaism, Christianity and Islam, in which the relationship between creature and creator is of paramount importance.
Melé then turns to the five religions based on ancient Asian cultures, which "root the way of life in ancient and frequently wise traditions." Prof. Melé briefly describes each religion and its history, and then explores its ethics and, more specifically, business ethics.
Judaism, which has 15 million adherents, started with the original Covenant made between God and Abraham around 1900 B.C. The main source for understanding business ethics in Judaism is the Torah. Writes Melé, "The legitimacy of business activity and profit, conducted within a framework of religious and ethical norms, is one of the guiding principles for business ethics highlighted in the Jewish tradition." In Judaism, work, including manual work, is held in great esteem, like a sort of human partnership with the divine.
Christianity is the religion with the most adherents, at 2 billion (970 million Roman Catholics; 220 million Eastern Orthodox; 385 million Protestants; 275 million others). Jesus of Nazareth, or Jesus Christ, born 2,000 years ago, is the central figure in Christianity. In his parables, Jesus makes positive mention of several businessmen who tried to make profits, but he warns against greed, an excessive anxiety toward future needs, and in serving money instead of serving God. Human dignity and concern and love for persons are crucial in Christianity. This religion also stresses a sense of justice in business, such as the strict observance of contracts, observing regulations and working for the sake of the common good.
Islam, with more than 1 billion practitioners, is the second largest religion in the world and growing. The history of Islam started with Muhammad, who was born in Mecca around A.D. 570. Muhammad believed in one God, Allah, and recorded his divine revelations in the Koran. Several Islam business scholars agree that a central concept of the religion is tawhid, or unity with God. Life is unified because it provides the practical way to pattern all facets of human life in accordance with God's will. Business is included and should be run according to the laws of nature dictated by God.
Hinduism, the first of the five religions based on ancient Asian cultures, is a cluster of religious traditions that evolved in India between 3,000 and 1,500 B.C. Today, there are about 780 million Hindus, mainly living in India. More than a theological system, Hinduism is an approach to the universe. When it comes to business, Melé makes two observations: Hinduism has a positive attitude towards business and creating wealth, yet wealth is not the supreme goal. Ethics (dharma) and salvation (moksha) are more important.
Buddhism, based on the teachings of Siddhartha Gautama, called "Buddha" or "the enlightened one," began in India around 560 B.C., and searches to find relief for human suffering. In business, Buddhists search for the "right livelihood" and are generally against companies that do not care for the environment or that abuse animals.
Confucianism, one of the three traditional religions of China, along with Taoism and Buddhism, is based on the teachings of Confucius during 5th and 6th century B.C. Approximately 5 million people practice the religion. According to Confucius, "A gentleman takes as much trouble to discover what is right as lesser men take to discover what will pay." Profit is acceptable as long as it is acquired with righteousness.
Taoism coexists with Confucianism in China. It seeks to promote the inner peace of individuals and harmony with their surroundings. "Tao" could be translated as "path" or "the way." It's like a force that flows through life and pervades all things. In business, Taoism encourages companies to nourish people, and the aim should not be personal success or gain, but the common good. According to "Tao Te Ching", chapter 9, "Fill your bowl to the brim and it will spill... Do your work, then step back."
Lastly is Shinto, which is inextricably tied to the origin and development of Japan. The word derives from the Chinese words shin tao (the ways of gods). Started in 500 B.C., the religion focuses on the worship of the kami, a host of supernatural and mysterious beings (natural deities) that can be known through forms, such as objects of nature, or abstract creative forces just as justice or remarkable people. In business, Shinto emphasizes benefits for the group, which is like a family.
Understanding how the world's religions approach business ethics encourages tolerance and understanding. Writes Melé, "A deeper knowledge of religious business ethics might bring about a better understanding of people worldwide. It can also facilitate a more intense dialogue between different religions and between religious and philosophical approaches."
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Early Retirement? OK, But Easy Does It
By Santificarnos.com
Most of the companies that have implemented an early retirement plan are satisfied with the results, yet reluctant to implement another such plan unless absolutely necessary. That is one of the conclusions to emerge from the survey carried out by Profesor Sandalio Gómez, holder of the SEAT Chair of Labour Relations at IESE, involving eight large Spanish companies that have introduced early retirement in the last decade.
By encouraging early retirement, these companies have obtained economic benefits (86% of respondents), reduced headcount (78%), improved employee welfare while avoiding industrial disputes (71%) and rejuvenated their workforce (38%). At the same time, though, they have lost a significant repository of knowledge and labour capacity, given that, generally speaking, it is the older employees who have left the company.
The fact is that early retirement, particularly if it becomes commonplace, not only affects the annual income statement and those who leave the company, but also helps to create within the company an atmosphere that does nothing to help the smooth running of day-to-day activity. once they reach the age of 45-50, employees start to feel that their working life is nearly over, and that naturally affects their attitude, as they no longer have much incentive to work hard or update their knowledge and skills. In some cases, this attitude can degenerate, leading to an increase in absenteeism and a complete loss of interest that makes it impossible for these workers to make any useful contribution, with the consequent difficulties for the company as a whole.
Among the Spanish companies that have introduced early retirement schemes in recent years there are two groups: those that have done so on the basis of the official redundancy procedure (Expediente de regulación de empleo), which has been used to retire large numbers of workers from the labour force; and selective early retirement, usually of senior or middle managers, which involves much smaller numbers but is qualitatively more significant. The study shows that 57% of the sample companies expect to take similar measures again at some time in the future, but "making the option less attractive".
In contrast to the company point of view, how is this trend towards mass early retirement regarded by the Government and the Social Security system? The answer is: they see it as a very bad thing.
First of all, because it runs counter to the recommendations of the Toledo Pact, signed by all the political parties in Spain, whose aim was to prolong the average working life even beyond the age of 65. Secondly, because early retirement (technically, this term refers to retirement before the age of 58) and pre-retirement (between the ages of 61 and 65) shift part of the costs that previously were borne by companies onto the National Employment Institute (INEM), and thus onto the Social Security system.
The outlook for pension systems - in Spain and throughout much of the developed world - is gloomy on account of the statistical projections of an ageing population and the consequent increase in the economically inactive population combined with a shrinking proportion of economically active workers. At a time like this everything to do with the financing of the public pension system is seen with great suspicion. Bearing in mind that, in this survey, the average age of those who took early retirement was 53, it is worth pointing out that a large proportion of these people will be drawing a pension for 30 years or so. In quite a few cases this will be more than the time they spent working. What´s more, the cost of the pensions that expire is only 63% of the cost of new pensions, which is to say that the "financial commitments" of the system are steadily increasing. Thus, forecasts of the balance of revenue and expenditure of the Social Security system in relation to GDP show a growing deficit.
The financing of pensions in Spain, as in countries like Germany, France and Austria, is based on the pay-as-you-go system, which means that active workers pay the benefits of those who went before them in the labour force. Although in recent years a capitalization fund has been built up in Spain, it remains insufficient to guarantee the future. Widespread early retirement could be the death blow that hastens the end of this system of inter- and intra-generational solidarity.
Lastly, early retirement has some very clear effects on people. The study reveals that, generally speaking, employees receive the news of their early retirement and learn of the content of the plan in an impersonal way, as something inevitable that they cannot prevent. Although they tend to be satisfied with the financial arrangements -which is understandable, as most receive between 60% and 90% of their working salary - the respondents to the survey feel the need for a more personalized treatment, greater recognition of the years given to the company and their achievements, and more decisive help in adapting to their new role in society.
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Most of the companies that have implemented an early retirement plan are satisfied with the results, yet reluctant to implement another such plan unless absolutely necessary. That is one of the conclusions to emerge from the survey carried out by Profesor Sandalio Gómez, holder of the SEAT Chair of Labour Relations at IESE, involving eight large Spanish companies that have introduced early retirement in the last decade.
By encouraging early retirement, these companies have obtained economic benefits (86% of respondents), reduced headcount (78%), improved employee welfare while avoiding industrial disputes (71%) and rejuvenated their workforce (38%). At the same time, though, they have lost a significant repository of knowledge and labour capacity, given that, generally speaking, it is the older employees who have left the company.
The fact is that early retirement, particularly if it becomes commonplace, not only affects the annual income statement and those who leave the company, but also helps to create within the company an atmosphere that does nothing to help the smooth running of day-to-day activity. once they reach the age of 45-50, employees start to feel that their working life is nearly over, and that naturally affects their attitude, as they no longer have much incentive to work hard or update their knowledge and skills. In some cases, this attitude can degenerate, leading to an increase in absenteeism and a complete loss of interest that makes it impossible for these workers to make any useful contribution, with the consequent difficulties for the company as a whole.
Among the Spanish companies that have introduced early retirement schemes in recent years there are two groups: those that have done so on the basis of the official redundancy procedure (Expediente de regulación de empleo), which has been used to retire large numbers of workers from the labour force; and selective early retirement, usually of senior or middle managers, which involves much smaller numbers but is qualitatively more significant. The study shows that 57% of the sample companies expect to take similar measures again at some time in the future, but "making the option less attractive".
In contrast to the company point of view, how is this trend towards mass early retirement regarded by the Government and the Social Security system? The answer is: they see it as a very bad thing.
First of all, because it runs counter to the recommendations of the Toledo Pact, signed by all the political parties in Spain, whose aim was to prolong the average working life even beyond the age of 65. Secondly, because early retirement (technically, this term refers to retirement before the age of 58) and pre-retirement (between the ages of 61 and 65) shift part of the costs that previously were borne by companies onto the National Employment Institute (INEM), and thus onto the Social Security system.
The outlook for pension systems - in Spain and throughout much of the developed world - is gloomy on account of the statistical projections of an ageing population and the consequent increase in the economically inactive population combined with a shrinking proportion of economically active workers. At a time like this everything to do with the financing of the public pension system is seen with great suspicion. Bearing in mind that, in this survey, the average age of those who took early retirement was 53, it is worth pointing out that a large proportion of these people will be drawing a pension for 30 years or so. In quite a few cases this will be more than the time they spent working. What´s more, the cost of the pensions that expire is only 63% of the cost of new pensions, which is to say that the "financial commitments" of the system are steadily increasing. Thus, forecasts of the balance of revenue and expenditure of the Social Security system in relation to GDP show a growing deficit.
The financing of pensions in Spain, as in countries like Germany, France and Austria, is based on the pay-as-you-go system, which means that active workers pay the benefits of those who went before them in the labour force. Although in recent years a capitalization fund has been built up in Spain, it remains insufficient to guarantee the future. Widespread early retirement could be the death blow that hastens the end of this system of inter- and intra-generational solidarity.
Lastly, early retirement has some very clear effects on people. The study reveals that, generally speaking, employees receive the news of their early retirement and learn of the content of the plan in an impersonal way, as something inevitable that they cannot prevent. Although they tend to be satisfied with the financial arrangements -which is understandable, as most receive between 60% and 90% of their working salary - the respondents to the survey feel the need for a more personalized treatment, greater recognition of the years given to the company and their achievements, and more decisive help in adapting to their new role in society.
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How Vacations and Weekends Impact Well-Being and Job Performance
By Santificarnos.com
As millions of people the world over prepare for the height of the summer holiday season, there are several burning questions in the minds of employees and employers alike: Do vacations actually improve well-being and job performance? Just how much time off does it take to rebuild our resources and restore our sense of personal and professional satisfaction? And what's the best way to spend time away from the office - socializing with friends, taking a course or simply relaxing?
According to doctoral candidate Charlotte Fritz of the Technical University of Braunschweig in Germany, vacations and weekends do lower our stress levels and improve our sense of well-being. But watch out: The positive effects of time off fade quickly, making the European system of just one, month-long vacation a bad idea. "We'd be much better off with several short vacations throughout the year," said Fritz.
Along with her colleague Sabine Sonnentag, Fritz has studied three key issues in the field of human resources: the effects of vacations and weekends on well-being and job performance, and the causal relationships between a worker's job and his or her mood. Fritz presented the results of all three papers - "Recovery, Health and Job Performance," "Vacation, Well-Being and Job Performance" and "Causal Relationships Between Mood and Job Performance" - at an IESE seminar organized by IESE Professor of Managing People in Organizations Steven Poelmans.
Let's begin with vacations. According to the results of Fritz and Sonnentag's longitudinal study of over 220 employees from 16 German universities, vacations do significantly decrease exhaustion and health complaints. They appear to replenish resources that can then be reinvested in work. While, surprisingly, participants reported the same level of task performance before and after vacation, they noticed that it took less effort to achieve a task after some time off.
But there's a catch. "We found that negative work reflection during vacation directly impacts health complaints," said Fritz. In other words, having negative thoughts about your job while on vacation can actually prevent you from recharging your batteries. on the flip side, positive reflection about your job during vacation has no significant impact.
Yet, according to Fritz, it won't take long before the euphoria fades. "We tested whether fade-out effects can be found after only two weeks of vacation," said Fritz. "While others have found major fade-out effects at four weeks, we found that some of them begin only two weeks after vacation." Health complaints, in particular, seem to return with a vengeance, said Fritz.
As for what people should do on vacation to optimize their sense of well-being, Fritz said, "Relax." Also, "mastery experiences" - learning new skills, taking a language class, or hiking up a mountain - seem to reduce exhaustion levels and improve job-related well-being when back at the desk. Of course, none of these ideas will work if an employee on vacation is faced with too many "non-work hassles." Flat tires, screaming children and personal conflicts can all prevent the rebuilding of resources. And what will quickly crush a feeling of post-vacation peace is an unwieldy, mountainous pile of work on the desk facing you when you return to the job.
Turning to weekends - those mini-vacations that we enjoy every week - Fritz found that, yes, they do help us recover from stress at work. According to her study of almost 90 German emergency medical service workers, thinking positively about one's job during weekend leisure time increases feelings of job-related health. Also, getting together with family and friends is beneficial. "We found that social activity enhances a person's performance after the weekend," said Fritz. Yet, again, watch out for those nasty "non-work hassles," which can drain instead of build your resources.
Finally, Fritz and Sonnentag looked at how a person's mood relates to his or her job performance. A study of over 170 civil service employees in Germany revealed a relationship between good moods and proactive performance at work. "We found that putting me in a good mood in the morning makes me take charge in the afternoon," said Fritz. Another surprising result: "The more proactive a person is in the morning, the worse his or her state of mind in the afternoon." However, this last result is only true for persons low in recovery. In other words, if we overexert in the morning, we will be exhausted and in a bad mood for the second half of the day.
Fritz and Sonnentag are also interested in what they call "spillover," the interface between conditions at work and at home. For instance, to what degree does a person's home life impact the job and vice versa?
Fritz summarized her findings with some important, practical advice to keep in mind as you pack your holiday suitcase: "While on vacation - whatever you do - don't think negatively about your job."
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