By Louisa Wong, Group MD, Bó Lè Associates
No matter whether you’re a Western multinational or a Chinese firm, you can take inspiration from the lessons and legend of Confucianism to build a successful business. Confucianism lends itself to a myriad of interpretations, but is at heart a philosophy about order, harmony, loyalty and justice. Applied to the workplace, it proves to have significant value in managing the workforce, recruiting talent and in business operations.
Confucianism is rooted in the principles of ren (humanism), yi (justice) and li (propriety). The Confucianist ideal is the ‘jun-zi’- or noble-minded one, who is emblematic of all these virtues, and it advocates a society formed of the noble-minded rather than the noble of birth. Morality is situated entirely in a sense of collective community: the individual is never virtuous in isolation, and is always defined by his social role. A person who successfully fulfils his role brings harmony and order to the organization. As we shall see, when ren, yi and li come into play in the workplace, it can transcend the moral and political, and benefit both employers and employees.
Self-cultivate
As a guide to leading a large corporation in a mature economy, Confucianism proves invaluable. Confucius’ idea of the ‘Great Learning’ is extremely applicable to business leadership; if a ruler has to self-cultivate before he can regulate his family and ultimately his state, then similarly a business leader has to start by being a good example himself before moving on to manage teams, divisions, departments, and finally, lead the whole company.
Harmony
Secondly, we come to the virtue of harmony, which is of great significance in the workplace. On the most basic level, people need to co-exist in harmony for a firm to function; colleagues should therefore be kind and giving towards each other, and help each other out over small, everyday tasks, e.g. covering the phone for them when they are away. When the workforce is harmonious, it is productive. This has direct impact on a firm’s profits, and can also build the firm up into an ‘admired company’, which can attract talent. Likewise, maintaining harmony between firms can bring long-term rewards. If you maintain good ties with other companies, deal fairly and squarely in business, and treat even rival businessman with respect, your firm will earn a good reputation and be able to attract rewards which are, if less instant, more enduring.
Loyalty
Thirdly, loyalty is seen as a bond between employers and employees – in exchange for his education, skills and potential, an employee gains money and prestige from his employer. The employer has a responsibility to maintain this bond by going the extra mile to make his workers feel valued - providing them with benefits and facilities, removing hierarchies in the company, and giving them opportunities to grow. When this bond is strong, employees will be able to resist financial offers from rival companies, and remain loyal out of a sense of belonging. Top talent can thus be retained.
Meritocracy
Finally, Confucius’s advocacy of a meritocracy is still extremely pertinent to recruitment practices today. For any economy which has ever experienced the evils of nepotism and corruption, meritocracy is a clear solution. Hiring on merit ensures that each person is uniquely qualified for the job at hand, thus promoting efficiency.
All these concepts work equally well whether you are a family-run business in China or a large corporation in the U.S. After all, discord in the workplace, corruption and talent loss are problems all companies across the globe have to deal with, and all companies work towards the common goal of expansion and profit. Confucianism offers a solution by offering harmony, loyalty and order as solutions. As a leadership strategy, it is universal and crosses many boundaries. In fact, by combining Western business principles with Confucianist virtues, we have the perfect recipe for success. Clearly, Confucianism cannot be dismissed as an outmoded moral code of conduct. It is only by looking towards the ethics of the East as well as the strategies of the West that companies can ensure they can capitalise on the economic recovery.
Paul Arkwright
Publisher
