ETHICAL PRINCIPLES AND ECONOMIC TRANSFORMATION A BUDDHIST APPROACH
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1 ETHICAL PRINCIPLES AND ECONOMIC TRANSFORMATION A BUDDHIST APPROACH
2 Issues in Business Ethics VOLUME 33 Series Editors: Wim Dubbink, CMO, Centre for Corporate Social Responsibility, Tilburg University, The Netherlands Mollie Painter-Morland, Department of Philosophy, DePaul University, USA Consulting Editor: Pat Werhane, Director, Institute for Business and Professional Ethics, DePaul University, USA Former Series Editors: Brian Harvey, Henk van Luijk, Pat Werhane Editorial Board: Georges Enderle, University of Notre Dame, USA William C. Frederick, University of Pittsburg, USA Campbell Jones, University of Leicester, United Kingdom Daryl Koehn, University of St. Thomas, USA Andreas Scherer, University of Zurich, Switzerland Horst Steinmann, University of Erlangen-Nürnberg, Germany Hiro Umezu, Keio University, Japan Lu Xiaohe, Shanghai Academy of Social Sciences, P.R. China For further volumes:
3 Ethical Principles and Economic Transformation A Buddhist Approach edited by LASZLO ZSOLNAI Corvinus University of Budapest, Hungary 123
4 Editor Prof. Laszlo Zsolnai Corvinus University of Budapest Business Ethics Center Fővámtér Budapest Hungary laszlo_zsolnai@interware.hu ISSN ISBN e-isbn DOI / Springer Dordrecht Heidelberg London New York Library of Congress Control Number: Springer Science+Business Media B.V No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Printed on acid-free paper Springer is part of Springer Science+Business Media (
5 Preface This book presents new insights of Buddhist ethics applied to economics and business. Buddhism suggests an approach to economic life, which is radically different from what mainstream Western economics offers. Buddhism promotes want negation and selfless service of others for achieving happiness, peace and permanence. These ideas might seem irrational or at least naïve for the Western mind which is preoccupied by cultivating desires and the instrumental use of the world. However, the deep ecological and financial crisis of our era renders alternative solutions worthy for consideration. The economic crisis of produced financial losses of billions of USD in the form of poisoned debts, decline of stock prices and value depreciation of properties. Formerly fast growing economies such as Ireland, Spain, Singapore and Taiwan experienced 5 10% decline in their GDP. The fundamental cause of the crisis is the avarice of investors fueled by irresponsible financial institutions. The prospect of future economic growth supposed to be the guarantor of the indebtedness of households, companies and economies. Today we experience a considerable downscaling of our economic activities. The present scale of economic activities of humankind is ecologically unsustainable. The so-called ecological footprint calculations clearly show this. The ecological footprint of a person is equal with the land and water that is required to support his or her activities indefinitely using prevailing technology. The sustainable ecological footprint also called earthshare is the average amount of ecologically productive land and sea available globally per capita. According to the latest available data the ecological footprint of humankind exceeds the ecological capacity of the Earth by %. It means that we would need Earths for continuing our present lifestyle. The ecological footprints of the most industrialized countries are shocking. These countries are ecologically overshot by % (See Table 1). Ecological economists argue that the material throughput of the economy should be drastically reduced in the industrialized countries and also globally. We need to undertake an economic diet by introducing more frugal production and consumption patterns. Frugality, that is, reduced material activities, is crucial for our survival. v
6 vi Preface Table 1 Ecological footprint of some industrialized countries in 2005 Country Ecological footprint Ecological overshot as % of sustainable level USA Denmark Norway United Kingdom France Italy Germany Holland The Global Warming Survival Guide created by the American weekly magazine, Time suggests the following: There is an older path to reducing our impact on the planet that will feel familiar to Evangelical Christians and Buddhists alike. Live simply. Meditate. Consume less. Think more. Get to know your neighbors. Borrow when you need to and lend when asked. E. F. Schumacher praised that philosophy this way in Small Is Beautiful: Amazingly small means leading to extraordinarily satisfying results (April 9, 2007). Today happiness is a top priority in economic, psychological and sociological research. In the last several decades the GDP doubled or tripled in Western countries but the general level of happiness the subjective well-being of people remained the same. Happiness research disclosed evidences, which show that the major determinant of happiness is not the abundance of material goods but the quality of human relationships and a spiritual approach to material welfare. Buddhist countries perform surprisingly well in this respect. There is a growing interest in Bhutan, this small Buddhist kingdom in the Himalayas, where the King of Bhutan introduced the adoption of an alternative index of social progress, the so-called Gross National Happiness (GNH). This measure covers not only the material output of the country but also the performance of education, the development of culture, the preservation of nature and the extension of religious freedom. Experts attribute to the adoption of GNH that while Bhutan s economy developed, the forestation of the country and well-being of people also increased. Thai Buddhist monk and philosopher, P. A. Payutto once said that one should not be a Buddhist or an economist to be interested in Buddhist economics. Buddhist ethical principles and their applications in economic life offer a way of being and acting, which can help people to live a more ecological and happier life while contributing to the reduction of human and non-human suffering in the world. Budapest, Hungary March 2011 Laszlo Zsolnai
7 Acknowledgement For the editing process I received invaluable help from Gabor Kovacs, a former graduate of the Budapest Buddhist University, who is a PhD candidate at the Business Ethics Center of the Corvinus University of Budapest. His dedicated assistance helped me a lot to improve the quality of the manuscript from the Buddhist point of view. Laszlo Zsolnai vii
8
9 Contents Part I Introduction 1 Why Buddhist Economics?... 3 Laszlo Zsolnai Part II Buddhist Ethics Applied to Economics 2 The Relational Economy Julie A. Nelson 3 Buddhism and Sustainable Consumption Peter Daniels 4 Economic Sufficiency and Santi Asoke Juliana Essen 5 Pathways to a Mindful Economy Joel C. Magnuson Part III Achieving Happiness and Peace 6 Do Our Economic Choices Make Us Happy? Colin Ash 7 Gross National Happiness Sander G. Tideman 8 The Application of Buddhist Theory and Practice in Modern Organizations Bronwen Rees and Tamas Agocs 9 Leadership the Buddhist Way Laurens van den Muyzenberg ix
10 x Contents Part IV Conclusion 10 The Contributions of Buddhist Economics Laszlo Zsolnai Bibliography of Buddhist Economics About the Authors Index
11 Contributors Tamas Agocs Buddhist University, Budapest, Hungary, Colin Ash University of Reading, Reading, Berkshire, UK, Peter Daniels Griffith University, Brisbane, QLD, Australia, Juliana Essen Soka University of America, Aliso Viejo, CA, USA, Joel C. Magnuson Portland University College, Portland, OR, USA, Julie A. Nelson University of Massachusetts, Amherst, MA, USA, Bronwen Rees Anglia Ruskin University, Cambridge, UK, Sander G. Tideman Laurens van den Muyzenberg Laszlo Zsolnai Corvinus University of Budapest, Budapest, Hungary, xi
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