Religion Applied to the Economy : The Relevance of Religious Principles to Contemporary Economic Issues

Economic policy and business strategy are largely developed in a secular context with little or no reference to religious principles. There are few organisations, apart from those facilitating worship, that pay much attention to religious principles. This chapter shows that religious principles are still relevant for contemporary economic decision-making, as they can improve moral and ethical conditions, can increase social harmony and can reduce inequality. Six different principles are discussed that apply equally to Christian religions and the Islam, e.g. beware of materialism and greed, help the poor and guard the environment. Several examples are provided to illustrate their application to not only government policy, but also to the behaviour of citizens and corporations. Historical experiences have often demonstrated a relation between religiosity and economic prosperity: religion that stimulated hard work, trust and cooperation and investment in human capital, and was tolerant to other religions had a positive impact. However, religion played also an unfortunate role in the economic exploitation of the excluded and initiated wars and inquisitions