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A short note on Martin Luther’s idea of business ethics

Abstract Among the many works of Martin Luther, one deals with trade and usury. It appeared in 1524. Various aspects of it have stimulated interest and debates in theology, sociology, and economics. The work contains two sentences, which address business ethics in general. These appear to be contradictory. They refer to conscience on the one hand, and to worldly regulations of interest and pricing on the other hand. Luther relates these two views to his doctrine of a truly Christian kingdom versus a worldly kingdom. In the first kingdom, moral behavior based on Christian ethics prevails. This is not entirely true in the worldly kingdom. In this environment, authorities have to administer and to supervise rules to achieve behaviors of merchants, which should not diverge too much from the behavior in the first kingdom. Consequences of these ideas are discussed.