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The impact of Chinese traditional culture and philosophies on business ethical practice

The impact of Chinese traditional culture and philosophies on business ethical

practice.

In recent years, china’s economy has been growing fast. In this context, Chinese traditional culture and philosophies are highly significant in terms of the development of Chinese economy. The doctrines of the four sages of ancient china, Confucius, Mencius, Laozi and Zhunagzi, imposed magnitude impact on Chinese business practices, especially ethical practices.

I don’t think that anyone can discuss any aspect of Chinese culture, including business ethical practices, without mentioning the most influential philosopher, Confucius, who was revered as the ‘First Sage of China’. At the center of Confucianism lies relationship. The closeness of relationship determines the level of treatment one receives. Without a significant relationship, the duty of ethical behavior is diminished. That’s why in organizations team works are essentially important. Only when there is a stronger link between every members of the team can assignments be accomplished closer to anticipation because the relationships of Confucianism are reciprocate in nature, which means you are not only live as an individual but also as a part of a relationship. Therefore, it maintains a perfect balance between being a single entity and as a part. As a result, the individual will do things for the sake of his team; sometimes even sacrifices his own interests. By sacrificing his own interests to get a closer relationship with other members in this team will in turn enhance the level of treatment he receives accordingly. That’s what be said reciprocate, which is absolutely can benefit the team work of an organization. And thanks to this reciprocate nature, the team will be consolidated. I think there is no need to cite an instance because it is apparently that no business can survive without following the doctrines of Confucianism because relationship, the core of Confucianism, is also one of the most important parts of business in china. Business is about interactions and transactions between people. In china, an indispensible part of doing business is called Guanxi, which is completely inherited from Confucianism. Usually a better Guanxi can give both companies a higher possibility to make a more successful and durable deal with

each other. In china, a closer relationship takes precedence over higher interest and can simplify the process of negotiation and, most important, make a reciprocate deal and therefore avoid some unethical behavior allured by high interests.

The ‘Second Sage of China’, Mencius, is also a well-known and revered philosopher in Chinese history, which believed in the inherent goodness of humankind and believed that all people have the inherent qualities to do the right things. As a result, Mencius felt that rulers had to maintain de, or virtue, in order to maintain their position of power. There derives the Chinese democracy I think. The way of making decision is the most palpable aspect to show democracy if relates to business conduction. Decisions are usually made by the upper level managers in the western while in china at most time, decisions are made by lower level employees because it will be considered as autocracy if decision is made only by the top level managers and that will be considered as a confrontation to the doctrines of Mencius of showing benevolence and righteousness when employees are forced to fulfil those tasks. Because employees are willingly to complete those missions so they will consciously take ethical behaviors because they don’t have to take unethical behaviors to finish those unrealistic goals set by the top level. That’s how morality comes from the practice of impartiality and collectiveness.

Laozi, who proposed the concept of ‘Yin and Yang’, believed nature exists in harmony and balance. It is the flexibility and a more situational view of ethical behavior promoted by Daoism that count in doing business. When doing team works, it is better for leaders not to be so useful, which means leaders should not do everything personally but leave more space for their employees to show their values. It doesn’t mean that leader do few things and do not fulfil his obligations to be a good role model of being hard working, however, in the contrast, it makes contribution to balance the relationship of employers and employees because people should strive for harmony and balance. It is especially important to leaders to realize that he is not dictating the team but should be a part of the team. Leaders can motivate the potential

abilities of the team if they can understand and obey Daoism well. Leaders should learn to believe the employees and give more freedom and space and rights to their subordinates so that the employees feel that they are being trusted and they will be willingly to do as much better as they can. Will it be possible that the company won’t be stronger and more and more prosperous if its employees working so hard with full of theirs hearts? So nowadays, the influence of Daoism is becoming stronger and stronger in business conduction in china.

The traditional culture and philosophies