HINDUISM BUSINESS AND

ECONOMY

Roxana Darjan

The Agenda

Introduction: India and Hinduism The Four Goals of Life The Caste System Hinduism and Business Joint Family Ventures The effects of Hinduism on India’s

business DO’s and DON’Ts Comparison Across Religions Mc Donald’s and Hindu culture

„ A man in this world without learning is as a beast of the field.”

Why Learning?

It’s a jungle out there…..

Competition is strong, and the way we present ourselves is under closer examination more than ever before.

1 Billion people call India home. It is primarily

rural, with 80% of people living in more than

550,000 villages.

Hindus comprise almost 85 % of the population

of India.

Unlike many religions which are traced to a

particular founder, Hinduism grew out of

Indian mythology.

Hinduism is the religion of experience. It is not

based on dogmas and creeds to be accepted

with blind faith, but is based on self-

realization. For a Hindu, God is in daily life.

India and Hinduism

Concerning the human activity,Hinduism identifies 4 legitimate goals: Dharma ( virtue )

Artha ( success )

Kama ( pleasure )

Moksa ( release )

The Four Goals of Life

The Caste System

Hinduism - polytheistic religion that believes in the transmigration of the soul.

You do good deeds all your life => you will be rewarded by socially moving up in your next life = Caste System

Caste System - defines people’s roles, status and social order

Hindu ideology of rank : humans of the purest caste are not the most powerful.

Western ideologies of aristocracy : the monarch is both the most powerful of humans and the closest to God and therefore rules by divine right.

U.S.A. : “Born to Run” - metaphorical. Hindu area : people are to be born to lead, others born

to craft gold, others born to fishsome - non-metaphorically

If this notion is understood, the international manager can understand Hindu ideas that restrict individual mobility but specify duties appropriate to castes.

Business relationships - based on personal

relationships.

With : 14 major languages & 300 minor ones

- English has become a unifying force in

India. Generally, you will be able to conduct

business in English.

Dress code - business casual. For women -

pant-suits or long skirts, which cover the

knees.

Date is written differently. First, day is

written, then month, then year (December

3, 2011 is written 3.12.11).

Hinduism and Business

Indians- want to know everything at the first

meeting -- don't be offended. It is to find out

personal preferences.

India - a medium tolerance for change and

risk.

Failure - causes a long-term loss of

confidence by the individual as well as by

others.

Manager - makes decisions

Indians - relaxed attitude towards time.

"time is money" - alien to most Indians.

Hinduism and Business

A joint family ethos promotes :

pooling of resources

collaboration of talent

training and induction of younger family members.

Business schools - studying Hindu' business culture

- Hindu family ventures as global leaders.

Advantages : Disadvantages : Ease of formation Confined to Joint Hindu families Continuity of operations Relatively limited capital Limited managerial talents Unlimited liability of the Karta

 

Joint Family Ventures

The effects of Hinduism on India’s business

Slows growth

Dampens Ambition

Promotes Specialization

Inefficient Implementation

High Power Distance

DO wait for a female business colleague to initiate the greeting. Indian men do not generally shake hands with women out of respect.

DO to keep in mind that each person has a very distinct role within the organization, and maintaining that role helps to keep order.

DO propose business lunches, because they are preferred to dinners.

DON’T take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands.

DON’T refuse any food or drink offered to you during business meetings as this may cause offence. In addition, it is useful to bear in mind that traditionally, Indians are vegetarians and do not drink alcohol.

DON’T appear over legalistic in negotiations; in general, Indians do not trust the legal system and someone’s word is sufficient to reach an agreement.

Do’s and Don’ts

Comparison Across Religions

Hinduism Buddhism Confucianism

Personal Satisfaction

Have what you want, but good sense and not injure

Selfishness is illness, strive for cure

Focus on important collective well being, not self well-

Profit taking Chance to give to society

Make money to do more for others

Accept costs to maintain moral values

Business as a career

A path to being, knowing, joy

Wisdom, morality Integrity and trust

Authority and power based on trust

Ethical leadership

Learn, act, think Trust and integrity

Wisdom, reasoning, morality Integrity and trust

Authority and power based on trust

Business in society

Source of being, knowing and joy

Life is mandala , a circle mandala,

Jen care for, respect, love others –

Mc Donald’s and Hindu culture 150 - 200 million middle class population attracted

McDonald's.

India's Hindu culture - do not eat the meat of the scared cow.

McDonald's - created Indian version of burgers (mutton and chicken) .

All foods - vegetarian and non-vegetarian, due to many Hindus are vegetarians.

McDonald's - "fraudulently concealing the existence of beef in MD’s French fries.

McDonald's settled the suit for $10 million and issued an apology.

Hindu nationalists - vandalized McDonald's restaurant ($45,000 of damage) , called on India's prime minister to close McDonald's 27 stores in the country.

धन्यवा�द !

Thank You For Your Attention !