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Chabad.org » Learning & Values » Questions & Answers » Ask the Rabbi » Latest Questions » Advice » Keeping Out of Unethical Business
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Keeping Out of Unethical Business


Question:

I found out that my business partner is planning on doing something that is possibly illegal, but in a way that avoids creating any liability for himself. Am I allowed to continue the partnership?

Answer:

The laws of ethical business practice are complex, depend on many detailed variables, and ultimately require the assistance of a specially qualified rabbi to be properly navigated.

To get you started, though, here are some general points to consider:

The Torah prohibits a Jew from "placing a stumbling block before the blind." Our tradition generalizes this prohibition to include anyone who's on a bad track. In other words: If someone's on his way to stumble in sin, don't be the guy who put the stumbling block there. According to the strict letter of the law, this principle doesn't apply in cases where the other person can perform the sin unassisted.

Nevertheless, the sages added a safeguard called "strengthening the hand of sinners." Now, even in a case where the other person could have sinned without our help, we are forbidden from providing materials or other assistance when we know it will be used for a sinful purpose. We are not allowed to provide weapons to dangerous people, for example, even though we know they can get the same elsewhere.

You need to consider whether that applies in your case. Is your partnership with this person assisting him to do something unethical? Since it's hard to be objective, that's another good reason to discuss with an experienced rabbi.

And here's another angle to consider: The Torah tells us not to invite suspicions on ourselves simply because of "the desecration of the name of Heaven." In other words: Jew = G‑d's representative in this world; Jew acts fishy = reflects poorly on G‑d. Truly, it is the job of every human being to go about their business with respect for G-d and humankind. A Jew is meant to set an example - certainly not to be suspected of the opposite.

Think for a minute: What is a Jew doing in business anyways? If we are to be a "holy nation," what on earth are we doing out there in the market? We should stay in the synagogue and the yeshiva and be holy there. But no, the purpose of a Jew is to bring holiness into the mundane and to discover G-dly wisdom and spirituality there, creating true value in the world. In truth, the whole point of your business is not to make money - there are many other ways G-d could provide that. The whole point of your business is to "sanctify G-d's name."

Knowing what business is truly about is good for business too. Think of your business as a giant cup - the receptacle into which G‑d pours blessings of livelihood and sustenance. Just like we wash out or wipe clean our kiddush cup before pouring in the wine on Friday night, so, too, we need to make sure our business is clean of any abuse of our fellow man and his property in order to receive G‑d's blessings in full.

While I hope you are in touch with a local rabbi qualified to handle the intricacies of such questions, I'm happy to help you find one should you need. Best wishes for tremendous profits in living your life as a holy business, may that provide you great success, materially and spiritually.

Sources:
Leviticus 19:14; Talmud Avodah Zarah 6b and Yoma 86a; Sifri to Deuteronomy 15:18; Tosfot to Talmud Shabbat 3a, “BeBah”; Rambam, Hilchot Yesodei HaTorah 5:11; Igrot Moshe, Yoreh De’ah 1:72.
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By Tzvi Freeman   More articles...  |   RSS Listing of Newest Articles by this Author
Rabbi Tzvi Freeman, a senior editor at Chabad.org, also heads our Ask The Rabbi team. He is the author of Bringing Heaven Down to Earth. To subscribe to regular updates of Rabbi Freeman's writing, visit Freeman Files subscription.
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18 Comments Posted  |  Post A Comment
Reader Comments
Latest Comments:
Posted: Aug 1, 2010
The wrong question
Thank you Linda, I was trying to make the same point.

To InMaine, from Portland, the point in my response was this person knew what was right, yet as Linda put it was seeking a Rabbi to give them some kind of loophole to avoid doing what they knew to be the right action to take.
My whole point was we should be consulting G-D in these matters and seeking his directions. My second point was this person would rather seek a Rabbi, then spend time with G-D in his word and seek his answer. The Torah gives those directions if we just would take the time to read it and seek G-D's directions. Instead we take the easy way out and look for loopholes even when we know what is right in our HEART.
As humans we endure G-D's anger because we are constanly seeking those loopholes in avoiding what we know is against G-D's directions for us.
Posted By Brian Brody, Sherman, TX

Posted: July 31, 2010
The wrong question
"Am I allowed to continue the partnership?' Shouldn't you be asking "What should I do about this?" You describe the plan as "possibly illegal". Why? Because it is dishonest? Unfair? Hurts people? Come on! You don't need to consult either a lawyer or an expert in the intricacies of Jewish law to know if something is wrong. We all have a spark of G-d in us. Often it acts as our conscience. You know your partner's plan is wrong otherwise you wouldn't be asking. So.. you should be talking to him/her about why it's wrong and why s/he shouldn't do it instead of asking a rabbi for a loophole!
Posted By Linda, Cincinnati, OH

Posted: July 30, 2010
Stumbling Block
Thank you very much, especially for the wonderful metapbor of the empty cup which we can keep clean in anticipation of blessings and a means of livelihood.

Thoughts on some of the other comments: RE Anonymous who feels put upon to make a minyan and projects this negative outlook on other customers of the business: prayer is good for business and most people know this - it promotes awareness that business people and their clients are, in essence, attending to higher things than business.
Second to Mr. Brody of Texas: written laws of the land sometimes do not represent good ethics but rather contain loopholes and other aspects wherein the "spirit of the law" is absent. In real estate law for example there are many instances in which an agent is not required to remove stumbling blocks set out for the parties who are not his client. In healthcare the disclosure laws do not remove all stumbling blocks either. We must begin with ethics and Jewish morals first, and consult laws second
Posted By InMaine, Portland, ME

Posted: July 30, 2010
More basic issue..
If one's business partner is about to embark on illegal or shady activities, the question to ask isn't "am I allowed to continue with him", but, rather, "why would I want to continue a business partnership with him"?
Posted By Eliyahu, Walla Walla, WA

Posted: July 30, 2010
Keeping out of Unethical Business
Thank you, Rabbi Freeman. I really enjoyed reading your answer, and find myself imagining it posted up on a world stage for all our denigrators to see - but then, of course, they would use it as another reason to spread poison about us. Thank you again, and I apologize for being so pessimistic.
Posted By Anonymous, Melbourne, Australia

Posted: July 30, 2010
What is in your Heart
As a businessmen my first thought would be to find out as many of the details as I could. Your question was that is was possibly illegal. First thing to find out is whether or not it is legal.

If you were to find out that this was illegal, then I would think the answer was obvious, do you wish to be part of this illegal activity or not?

We seek the advice of the Rabbi, when shouldn’t you be seeking the advice of G-d in this matter. Go to the Lord in prayer and listen to your heart, he will direct you as to what is right.

It is obvious to me that you know in your heart when you need to do you are just seeking approval for those actions you know in your heart have to be taken.
Posted By Brian Brody, Sherman, TX

Posted: July 30, 2010
Stumbling block
Dear writer, I do think that your outlook on yourself and on life is too pessimistic. See the "problem" that you recounted as follows: Eight or nine men arrive to pray. The Rabbi asks the customers of a business to come into the synagogue so that you can have a minyan. You are doing the men who come in a service. Without you, they would never have been asked to come in to pray in the first place. And, they might well begin to start making a habit of it. What a mitzvah!
Now, you say that the businesses might be harmed and that people might lose their means to make a living. I do think that most people who do not want to pray will find a way around this. They will have an "important appointment" or will simply come at some other time.
Therefore, I think that there is no need to worry that you are creating a stumbling block for your Rabbi.
Posted By J.R., Frankfurt , Germany

Posted: July 29, 2010
Practicality of the rule of not aiding stumbling
I have the blessing, or the curse, of being able to see ways that any action, however innocent, could aid a sin. This restricts me too much.

For example, the Chabad house is a small part of a commercial building. When 8 or 9 men arrive to daven, the Rabbi asks the customers of a business to come into the shul so that we can have a minyan. Some customers do not like being approached by the Rabbi. I think that they might avoid the business, and that what the Rabbi is doing could be hurting the ability of the business owner(s) (and employees) to make a living. I would tell him this, but I do not think that he would believe me. If I am right, then hurting the business in this way is a sin. In theory, if there are 7 Jewish men, not including myself, going to shul, then I am obligated to stay away, so that I do not cause the Rabbi to stumble into the sin that I have described.

When I see everything that I might do as potentially a cause of a sin, how can I even breathe?
Posted By Anonymous, Withheld to protect the identity of the Rabbi and the business, USA

Posted: July 28, 2010
There's a perfectly good non-divine answer as well
As written in the article, Jews are God's representatives, so when a Jew sins publicly, it makes the world look down on God.

The same goes for the Jewish people in general. If a Jew commits a crime or performs an unethical act, or even performs an act that may seem unethical to the uninformed, the world thinks less of all Jews. Every Jew is a representative of all Jews, whether he wants to be or not. There are, sadly, many people who will use such news an an excuse to commit acts of hatred against Jews.

I realize that anti-semites don't need an excuse to hate Jews, but it is still a terrible sin to give them an excuse, even if you technically did nothing wrong.

When you're in the world's spotlight, you have to avoid even the appearance of unethical behavior, even when others may do the same all the time.
Posted By David C., Vienna, VA

Posted: July 28, 2010
Good article
Thanks for the article, Rabbi Freeman.

To anonymous in Kanata, ON:

Your point about Prohibition is taken, but your description of Capone is not. Capone committed murder, gambling, loansharking, extortion, drug trafficking, labor racketeering, prostitution, and fraud in addition to bootlegging, and was involved in a criminal organization that had no scruples when it came to earning.

The Chicago mob was entirely ruthless. Most of its members had criminal histories before being involved with the organization; a majority had rap sheets from childhood. If Capone didn't bootleg, then he would have engaged in other illegal activities. Lets not imagine he would have been a law-abiding citizen if not for Prohibition.

There were millions of Italian, Jewish, and Irish immigrants who took the high road and stayed out of crime. The few who chose the rackets were nothing more than the delinquents in their communities. Pretending otherwise is a crime against memory.
Posted By tommy, Seattle, WA



 


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