Religion and modern day commerce ties

Is it a public holiday for everyone, my associate, based in India inquired. It is the same in South Africa, moderated our CEO, who was taking the call from Johannesburg.

As I kicked back for the rest of the break, I pondered over this issue, wondering just how deeply religion influences trade. One thing is certain.

Most of the public holidays as well as the work week follow the Christian (Gregorian) calendar. Introduced by Pope Gregory XIII in 1582, it does not carry the same meaning across religions.

I rummaged through the internet and was surprised. I expected many but found only a few scholarly, articles tackling the influence of religion on economic growth in Kenya, and on specific aspects of business management, such as marketing.

Perhaps influential philosophers of the 19th and 20th centuries, such as Karl Marx and Max Weber were right. They thought that the role of religion would decline with industrialisation and modernity.

Sceptical, I dug deeper. Religion, it turns out, has remained a macro social force, affecting business and society in fundamental ways. It impacts commerce in critical ways, influencing consumer behavior, business practices, and the overall economic environment. Religious convictions shape ethical considerations in business, impact consumption patterns, and influence investments.

Some religions have specific rules regarding the conduct of commerce, and what constitutes acceptable business practices, thus affecting how businesses operate.

I am not talking about the goings on in your local church, mosque or temple. So, to ensure that we are on the same page, a word about defining religion. In this article, by religion I mean, as Durkheim wrote in 1912, a collective social act that seeks to create a moral community. If you are in a more philosophical mood, perhaps we can settle on religion as the moral visions of how the world should be.

Religious convictions shape consumer choices, with some faiths discouraging or banning certain products or practices, such as alcohol. Religious communities have specific cultural practices and traditions that influence buying habits. During most religious holidays or festivals, retail activity, travel and accommodation are heightened.

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Religion influences how businesses treat employees, suppliers, and customers. Specific guidelines for business transactions, such as Sharia law, determine how returns are structured, thereby impacting investment decisions and business models.

Religious organisations often engage in charitable or social initiatives that impact the business environment, such as supporting local businesses or advocating for social causes.

Religion shapes the overall economic environment. It plays a role in shaping societal values and norms that impact economic development. Such norms include the importance of hard work, saving, or community involvement.

Theories on early economic development in North America see the protestant ethic as an explanatory factor. Religious institutions are important economic actors, providing services such as education, healthcare, and community support, which influence economic growth. Thousands of secondary schools in Kenya are either run, or sponsored by, religious institutions.

Religious openness, as defined by factors such as religious freedom and tolerance, can be positively associated with trade performance.
Religious beliefs can influence what goods and services consumers purchase and how they spend their money. Communities with conservative religious traditions have different buying patterns compared to more secular or liberal communities.

As marketers know, businesses must be aware of religious sensitivities when designing marketing campaigns and advertising to avoid offending or alienating potential customers. Religious beliefs influence consumers' ethical choices, such as purchasing products from companies with responsible labor practices or avoiding products associated with unethical activities.

Religious convictions can instill a strong sense of honesty and trust, which can positively impact business relationships, economic transactions, and approach to ethical questions such as corruption.

Proclamations are not the same as conviction. If they were, corruption would be less in Kenya. Some religious traditions emphasise hard work and diligence, perfect for higher productivity and economic growth.

Religious beliefs can foster behaviors that promote economic growth, such as saving, investing, and engaging in productive activities. In some cases, religious beliefs can reduce the size of the shadow economy, as individuals may be more likely to adhere to ethical and legal standards.

The impact of religion on commerce varies significantly across regions and cultures. Some regions are more influenced by religious beliefs than others, leading to distinct economic patterns.

Ndiritu Muriithi is an economist and partner at Ecocapp Capital.  He is also the chairman of KRA and former governor of Laikipia County. Email: [email protected]