Confucianism, the most profound and dynamic thought system in traditional Chinese culture, has for centuries exerted great influences on China's economy, politics, and culture. It is not surprising, then, that the traditional Chinese business culture was deeply associated with Confucianism.
The Confucian idea of profits was double-edged. On the one hand, Confucius' disciple, Mencius, made it abundantly clear that it was immoral of rulers to concentrate on profits for their respective states. On the other hand, merchants were socially useful because their risk-taking trading activities could supply the people's diverse needs.
In a compromise, ethics was deeply incorporated into business activities. Consequently, it was insisted that merchants' behaviors be governed by the ethical principles, which held that righteousness outweighs profits and that collective benefits and spiritual values outweigh individual benefits and material values respectively.
The ethical principles could provide a set of useful rules and guidelines for the business activities. The central doctrine of Confucianism, Ren, which means goodness, benevolence, humanity, and kind-heartedness, occupied a prominent role in balancing ethics with the pursuit of profits.
Confucian Hans sought to eliminate excessive profits by preventing such activities as cheating, manipulating supply and demand to bring about higher prices, and corrupting public officials.
In Confucian thought, Li, another virtue literally meaning propriety, also exerted great influences on business activities. One of the virtue's earliest meanings was "ceremonies," in the sense of rituals and structures that people went through at specific times and for specific reasons. From there, the word developed a more general meaning that could mean a set of ethical principles guiding interpersonal relationship in a hierarchical society.
Li was helpful in keeping the paternal feudal system alive and was also important in directing people to behave ethically and politely. It has played an indispensable role even in modern business activities where quality services and politeness to customers are priorities.
In addition to Ren and Li, Xin, another virtue literally meaning honesty and trustworthiness, was also important in directing business activities. Only when ethical integrity was highlighted could justice be practiced and harmony be achieved in the business community.
The idea that honesty and trustworthiness could lead to a harmonious and benign society found lots of followers among overseas Chinese businesspeople.
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