We have theoretically examined whether magnetic moment of iron atom can be induced or not when highly electronegative elements such as halogen or oxygen atoms are doped. Based on the impurity Anderson model, we evaluated the green function of d electrons. Through the analysis of green function, it is disclosed that a magnetic moment can be induced by impurity potential caused from doping elements, although intrinsic beta-FeSi2 is non-magnetic. In particular, high electronegativity of doping atoms and/or strong Coulomb repulsive interaction between conduction electrons and doped atoms easily induce magnetic moment from non-magnetic state. In the viewpoint of chemical bonding, such an induced magnetic moment appears as a result of decomposition of covalent FeSi bonds by a strong electronegative impurity potential, because the broken bonds create the unpaired 3d electrons. (C) 2004 Elsevier B.V. All rights reserved.