Jewish business ethics

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Jewish business ethics is a form of applied Jewish ethics that examines ethical issues that arise in a business environment. It is noted [1] that in the Torah, there are over 100 Mitzvot concerning the kashrut (fitness) of one's money, many more, in fact, than concerning the kashrut of food. The subject thus receives an extensive treatment in Rabbinic literature, both from an ethical ( Mussar ) and a legal ( Halakha ) point of view.

Contents

Ethical perspective

The general gravity with which business ethics are treated in Jewish thought is illustrated by the widely quoted [2] Talmudic tradition (Shabbat 31a [3] ) that in one's judgement in the next world the first question asked is: "were you honest in business?" Similarly, the punishment to be received for dishonest business practice is held to be more severe than for other categories of sin. [4]

In the Book of Sirach, verses 26:29-27:3 offer a "remarkably sceptical" view of business:

As a stake is driven firmly into a fissure between stones, so sin is wedged in between selling and buying. [5] [6]

In addition to these, and numerous other Talmudic passages, the Mussar and Chassidic literature also discuss business ethics at great length. Examples follow by genre.

"The Mezzuzah that we affix to the doorpost is connected to the things that we bring in and take out of our houses. We gather into our homes the wealth that G-d has bestowed upon us. All should therefore be in truth and in faith as befits a house on which the Law of G-d is inscribed on the door posts. This is the secret of conducting one's business in faithfulness. In other words, what one brings into the house, that is what one earns, should be in faithfulness. What we take out, what we spend our money on should also be in faith."

There are over 100 Mitzvot (commandments) concerning commercial and business conduct – a few examples are discussed in the following sub-sections.

The principles relating to these commandments are developed and expanded upon in the Mishnah and the Talmud (particularly in Order Nezikin ). The detailed laws are then delineated in the major codes of Jewish law (e.g. Mishneh Torah , particularly books 11. Nezikin, 12. Kinyan and 13. Mishpatim; and Shulhan Arukh , particularly Choshen Mishpat ). Further, specific questions here, numbering in the thousands, have been discussed in various responsa over the centuries.

For a general survey, see "The Challenge of Wealth," [14] by Dr. Meir Tamari. Also see Michael S. Perry's "Labor Rights in the Jewish Tradition". [15] And for an overview of ""The Challenge of Wealth as well as the resources listed at; [16] for discussion relating to specific contemporary issues see [17] and below; for a more holistic Halachic discussion, with detailed references, see the works by Marburger and Wagschal in references.

Requirement of accurate weights and measures

According to the Book of Leviticus (19:35-36): "You shall not falsify measures of length, weight, or capacity. You shall have an honest balance, an honest weight, an honest ephah, and an honest hin."

Prohibition of monetary deception (ona'at mamon)

Leviticus 25:14 teaches: "When you sell anything to your neighbor or buy anything from your neighbor, you shall not deceive one another." The Talmud (Bava Metzia 49b and 50b) and later codes (Rambam, Mekhira, Chapter 12) expand on this verse to create a series of specific laws prohibiting ona'ah , monetary deception. The prohibition is on the sale of an article at so much more, or to the purchase of an article at so much less, than its market value that fraud or the taking of an undue advantage is presumed. A discrepancy of one-sixth enables the wronged party to secure the cancelation of the sale or purchase; that is, an article worth six money-units in the market may not be sold for seven or bought for five (B. M. 49b). It seems that overcharge by the merchant selling to the consumer was the most frequent instance in which the application of the rule was called for; the claim had to be made as soon as the buyer had had an opportunity to show his purchase to a merchant or to one of his friends. It is said that R. Ṭarfon taught at Lydda that the discrepancy must amount to one-third to justify an action, whereupon the merchants rejoiced; but when he extended the time for rescission to the whole day they demanded the restoration of the old rule. [18]

Either seller or purchaser, whether merchant or one in private life, may make the complaint, notwithstanding the opinion to the contrary of R. Judah ben Ilai. The purchaser imposed upon may ask either for rescission of the transaction or for the return of the excess paid by him. [18]

In the case of changing money it was suggested that a lack in weight of even one in twelve should be sufficient ground for complaint, but the prevailing opinion fixed here also the ratio of one in six. Within a great city the time for complaint extends until the money in question can be shown to a money-changer; in villages, where no money-changer is to be found, until the eve of the Sabbath, when the party deceived is apt to tender the coin in payment for his purchases. [18]

Prohibition of verbal deception (ona'at devarim)

Leviticus 25:17 teaches: "Do not deceive one another, but fear your God, for I the Lord am your God." Since Leviticus 25:14 was understood as referring to monetary deception, the Talmud concludes that Leviticus 25:17 refers to verbal deception, "ona'at devarim."

In Baba Metziah (iv. 10), the Mishnah proceeds: "As there is 'wronging' in buying and selling, so there is 'wronging' in words; a man may not ask, 'What is this article worth?' when he has no intention of buying; to one who is a repentant sinner it may not be said, 'Remember thy former conduct'; to him who is the son of proselytes one may not exclaim, 'Remember the conduct of thy forefathers'; for it is said, 'Thou shalt neither vex a stranger, nor oppress him'" (Ex. xxii. 21). In a baraita (B. M. 58b) which follows this section the subject is further developed. "When a proselyte comes to study the Law one should not say, 'He that ate the meat of fallen or torn beasts, of unclean and creeping things, now comes to study the Law that was spoken by the mouth of Omnipotence!' When trouble or sickness comes upon a man, or when he has to bury his children, none should say to him, as Job's friends said to Job, 'Where is thy fear of God, thy trust, thy hope, and the innocence of thy ways?'" The baraita forbids also practical jokes. "If ass-drivers come to one for fodder, one may not send them to N. N. to buy it, knowing that N. N. never sold hay or grain in his life." [18]

On the authority of R. Simeon ben Yoḥai, it was said that wronging by words is worse than wronging in trade, for the Scripture as to the former, but not as to the latter, commands, "Thou shalt fear thy God": R. Eleazar says, because one injures the man himself, the other affects only his property; R. Samuel b. Naḥman says, because in one case there is opportunity for restoration, in the other there is not. The Talmud then dwells upon the unpardonable sin of "blanching the face of one's neighbor in public," and closes with the admonition that under all circumstances a man should beware of "wronging" his wife, because her tears are ever ready to accuse him before the throne of God. [18]

Geneivat da’at ("stealing a person’s mind")

Geneivat da'at, literally "stealing of the mind/knowledge", refers to a kind of dishonest misrepresentation or deception. The prohibition on geneivat da'at is attributed to the Talmudic sage Samuel of Nehardea in Talmud Chullin (94a): "It is forbidden to mislead people, even a non-Jew." One Midrash states that geneivat da'at is the worst type of theft because it directly harms the person, not merely their money. [19] [20] In rabbinic exegesis, the law is associated with Gen. 31:26 and II Samuel 15:6.

Rabbi David Golinkin has explained the principle's application to business ethics as follows:

We would call it false packaging or false labeling. The Talmud gives a number of specific examples: One should not sift the beans at the top of the bushel because he is "deceiving the eye" by making the customer think that the entire bushel has been sifted. It is forbidden to paint animals or utensils in order to improve their appearance or cover up their defects (Bava Metzia 60a-b).

We are all familiar with this kind of ruse. A wholesaler takes an inferior brand of shirt and puts on Pierre Cardin labels. You buy a box of perfect-looking tomatoes or strawberries, only to discover upon opening the box at home that they were packaged with the bad spots facing down. And we all know how used cars are touched up and polished for the sole purpose of overcharging the customer. Such behavior is clearly forbidden by Jewish law. [21]

Putting a stumbling block before the blind

A statement in the Torah (Leviticus 19:14) prohibits "placing a stumbling block before the blind." Jewish tradition sees this as a figuratively expressed prohibition against misleading people. When it comes to business ethics, Rabbi David Golinkin has pointed to the following examples of what this principle prohibits:

"A real estate agent should not dupe a young couple into buying a home with structural faults simply in order to make a fast buck. A stockbroker should not sell his client a bad investment just to collect the commission. A salesman should not convince his customer to buy an expensive item he really has no use for." [21]

Contemporary applications

There are numerous published responsa dealing with specific contemporary issues; a few of many examples are discussed below. [17]

Treatment of workers

The Jewish Labor Committee prepared a list of articles, books and other items, by over 60 authors, entitled "Readings on Traditional Jewish texts on Labor and Worker Rights". [22]

Rabbi Michael Feinberg's article "Wage Theft Study Guide: A Jewish Perspective" is also online. [23]

Rabbi Jill Jacobs authored a responsum in 2008, approved by Conservative Judaism's Committee on Jewish Law and Standards, which argued that Jews are obligated to pay their workers on time, strive to pay their workers a living wage,[ clarification needed ] and "to treat their workers with dignity and respect." The responsum prohibited "publicly yelling at, mocking, or otherwise embarrassing workers; forbidding employees from speaking their native languages at work; banning all bathroom breaks; changing work hours or adding shifts without advance notice; or making improper sexual comments or advances toward workers." [24] [25] Enforcing laws regarding the proper treatment of workers in the food industry has been central to the efforts of Conservative Judaism's Hekhsher Tzedek commission.

Not wasting time at work

It is important not to steal company time. Rabbis had often noted the importance of working hard, such as the Biblical Jacob, who worked very hard for many years, despite being deceived by Jacob's father-in-law. Therefore, employees should avoid spending too much time on-line (e.g., Facebook) or other diversions when at their job. [26]

Whistleblowing

Rabbi Barry Leff authored a responsum in 2007, approved by Conservative Judaism's Committee on Jewish Law and Standards, regarding an employee's obligation to report wrongdoing on the part of his or her employer. He concluded that "In any case of wrongdoing, there is an obligation to rebuke the person doing wrong if it can be assumed there is a reasonable chance the rebuke will be listened to, and the rebuke can be administered without substantial personal cost to the reporter." [27]

Education

Institutions including Harvard University, [28] Brooklyn College, [29] and The Rohr Jewish Learning Institute teach courses on Jewish Business Ethics for students and professionals. [30] [31] [32] [33] [34] [35] [36] [37] [38]

See also

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References

  1. ↑ Dr. Meir Tamari The Challenge of Wealth - Introduction Archived 2014-02-24 at the Wayback Machine
  2. ↑ Mentioned, for example, in the popular Halachik work Kitzur Shulchan Aruch (ch 62 Archived 2012-03-23 at the Wayback Machine ).
  3. ↑ 31a
  4. ↑ Maimonides, Mishneh Torah, Hilchos Genevah 7:12
  5. ↑ Sirach 27:3: New Revised Standard Version
  6. ↑ Collins, J. J., 44. Ecclesiasticus, or The Wisdom of Jesus Son of Sirach, in Barton, J. and Muddiman, J. (2001), The Oxford Bible Commentary, p. 686
  7. ↑ 86:B
  8. ↑ Avot D’rabi Natan, ed. Schechter, version B, Chap. 31, p. 68
  9. ↑ Bava Batra 90b; Sanhedrin 25b
  10. ↑ Chofetz Chaim, Sfat Tamim, chapter 5
  11. ↑ chabad.org : Business Ethics
  12. ↑ The Rohr Jewish Learning Institute: Money Matters: Jewish Business Ethics
  13. ↑ Tzvi Freeman: The Kabbalah of Making Money.
  14. ↑ Meir Tamari. "Challenge of Wealth". Goodreads. Retrieved 31 March 2016.
  15. ↑ http://www.jewishlaborcommittee.org/LaborRightsInTheJewishTradition.pdf [ bare URL PDF ]
  16. ↑ "Besr.org". Archived from the original on 28 July 2013. Retrieved 31 March 2016.
  17. 1 2 Yeshivat Darche Noam Judaism in the Workplace: Professional Ethics & Halakha Archived 2013-03-20 at the Wayback Machine
  18. 1 2 3 4 5 "ONA'AH - JewishEncyclopedia.com" . Retrieved 31 March 2016.
  19. ↑ Encyclopedia Talmudit 6:225-231. On the ranking of theft, see Mekhilta Mishpatim 13, Tosefta BK 7, Hilchot De'ot 2:6. On the exception for honoring a person, such as a guest, see Hullin 94b and Tur HM 228.
  20. ↑ Resnicoff, Steven H. "Ends and means in Jewish law" JLA v.15, 2004, p.151, states that geneivat da'at is more "blameworthy... because the injury to the person is more personal and direct; it is not merely a financial injury...."
  21. 1 2 Some Basic Principles of Jewish Business Ethics Archived 2004-08-12 at the Wayback Machine
  22. ↑ "Jewish Labor Committee" . Retrieved 31 March 2016.
  23. ↑ "Wage Theft Study Guide: A Jewish Perspective | Interfaith Worker Justice". Archived from the original on September 11, 2015. Retrieved May 27, 2015.
  24. ↑ Dispatches from the Workplace: Rabbis for Worker Justice
  25. ↑ "Archived copy" (PDF). Archived from the original (PDF) on November 27, 2010. Retrieved October 20, 2010.{{cite web}}: CS1 maint: archived copy as title (link)
  26. ↑ Business Ethics of our Fathers
  27. ↑ http://www.rabbinicalassembly.org/docs/Whistleblowing.pdf [ bare URL PDF ]
  28. ↑ "Jewish Law and Marketplace Ethics". BUSINESS ACROSS RELIGIOUS TRADITIONS, Harvard Divinity School. January 31, 2008. The legal dimension of the Jewish religious tradition emerged as an all-encompassing system of law that did not conceive of anything outside its purview. Thus, the tradition is replete with reflections on, and regulations governing, business practices of all kinds, from the credit markets to the labor markets. This discussion focused on a passage of Talmud—the primary source of almost all Jewish law—that deals with many aspects of unjust enrichment and ill-gotten gains. In the process, participants learned about the tradition's views on pricing, interest, wages, and the ethics of the marketplace more generally. The seminar also afforded the opportunity to focus on the patterns of reasoning that produce some startling conclusions. This led, in turn, to a broader conversation regarding the religious framework for regulating human behavior and its effectiveness (or lack of same).
  29. ↑ Friedman, Hershey H. "Business Practices and the Jewish Tradition (Jud 20.5/Business 50.6)". Brooklyn CUNY. Archived from the original on 3 September 2014. Retrieved 27 January 2015.
  30. ↑ "Jewish business ethics to be topic for course". Toledo, Ohio: The Blade. January 29, 2012. The recent failures in the financial industry have drastically changed the way we think about business," said Rabbi Yossi Shemtov, JLI instructor and rabbi at Toledo's Chabad House-Lubavitch. "At JLI, we deeply believe that business should be a force for good and that's why we're presenting students with timeless Talmudic insights into real-world ethical dilemmas.
  31. ↑ "Economic crisis from a Jewish perspective". The Naperville Sun (Chicago Tribune). The Sun - Naperville (IL). January 27, 2012. Archived from the original on March 29, 2015. Money Matters has been developed by the Rohr Jewish Learning Institute and will be taught in 300 locations throughout the world
  32. ↑ "Chabad plans courses on Judaism's relevance today, business ethics". St. Louis Jewish Light. St. Louis, Missouri.
  33. ↑ "Faith Briefs". Thousand Oaks, California: THE THOUSAND OAKS ACORN. J.Bee NP Publishing, Ltd. January 26, 2012. Archived from the original on April 8, 2016. Retrieved January 27, 2015. Chabad offers course on biz ethics The Rohr Jewish Learning Institute will present a new course, "Money Matters: Jewish Business Ethics,"
  34. ↑ "Wisdom of the Ages for Today's Economic Dilemmas". Jewish St Louis. Original Article at Jewishinstlouis.org. January 23, 2012. Chabad 's Jewish Learning Institute (JLI) will be partnering with the Jewish Community Center to present a new accredited six-session course, Money Matters: Jewish Business Ethics
  35. ↑ "Little Star students shine on big stage at Eltingville Jewish preschool performance". Staten Island, New York: SILive.com., Advance Digital. Staten Island Advance. January 20, 2012. The Rohr Jewish Learning Institute (JLI) will present a new course, "Money Matters: Jewish Business Ethics," led by Rabbi Shmuli Bendet of Chabad Lubavitch of Staten Island,
  36. ↑ "Jewish Learning Institute presents course on business ethics". San Francisco, California: San Francisco Jewish Community Publications Inc. Jewish News Weekly of Northern California. January 19, 2012. Local chapters of the Jewish Learning Institute will present a six-part course, "Money Matters: Jewish Business Ethics," later this month.
  37. ↑ Brackman, Benjy. "Capitalism, Socialism….Judaism?". Boulder, Colorado. Boulder Jewish News. Retrieved 31 December 2014. one of JLI's (Jewish Learning Institute) most exciting courses, Money Matters.
  38. ↑ "Chabad of East Boca Raton To Offer Business Ethics Course". BOCA RATON, Florida. Boca News Now, A Division Of MetroDesk Media LLC. January 9, 2012. The Rohr Jewish Learning Institute (JLI) will present the new course Money Matters: Jewish Business Ethics. Rabbi Ruvi New of Chabad of East Boca....Spanning a wide range of intriguing subjects, Money Matters discusses the personal ethics of bankruptcy and freeloading asking questions such as: After purchasing a ticket for a ball game, can you move to an unoccupied, higher-priced seat? If you ever have the money are you morally obliged to repay discharged debt? Questions regarding topics in social ethics such as living wages, insider trading, CEO compensation, and collective bargaining are also addressed.

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