Research on ethical leadership in organizations has been largely based on Western philosophical traditions and has tended to focus on Western corporate experiences. Insights gained from such studies may however not be universally applicable in other cultural contexts. This paper examines the normative grounds for an alternative Confucian virtue-based ethics of leadership in China. As with Western corporations, organizational practices in China are profoundly shaped by their own cultural history and philosophical outlook. The ethical norms guiding both the practice and (...) theory of leadership in China are underpinned by indigenous Chinese wisdoms imbued in their own traditions and China’s collective psyche. Focusing on three fundamental aspects of Confucian virtue ethics: _ren_ (仁 benevolence), _yi_ (义 righteousness) and _li_(礼 ritual propriety), this paper proposes that an ideal Confucian leader regards self-cultivation as a first priority; status and material gain, whilst important, are not the foremost concern. S/he exemplifies the virtuous role model, exudes moral charisma and influences others by shaping an organization’s ethical culture through the process of ritualization. The paper concludes by claiming that amplifying the explicit discourse around Confucian virtue ethics will help contribute to the development of better ethical leadership in China. (shrink)

We examined Confucian moral philosophy, primarily the Analects, to determine how Confucian ethics could help managers regulate their own behavior (self-regulation) to maintain an ethical standard of practice. We found that some Confucian virtues relevant to self-regulation are common to Western concepts of management ethics such as benevolence, righteousness, wisdom, and trustworthiness. Some are relatively unique, such as ritual propriety and filial piety. We identify seven Confucian principles and discuss how they apply to achieving ethical self-regulation in management. In addition, (...) we examined some of the unique Confucian practices to achieve self-regulation including ritual and music. We balanced the framework by exploring the potential problems in applying Confucian principles to develop ethical self-regulation including whistle blowing. Confucian moral philosophy offers an indigenous Chinese theoretical framework for developing ethical self-regulation in managers. This is relevant for managers and those who relate to managers in Confucian-oriented societies, such as China, Korea, Japan, and Singapore. We recommend further research to examine if the application of the Confucian practices outlined here actually work in regulating the ethical behavior of managers in modern organizations. (shrink)

In recent years, increasing attention has been given to virtue ethics in business. Aristotle's thought is often seen as the basis of the virtue ethics tradition. For Aristotle, the idea of phronësis, or 'practical wisdom', lies at the foundation of ethics. Confucian ethics has notable similarities to Aristotelian virtue ethics, and may embody some similar ideas of practical wisdom. This article considers how ideas of moral judgment in these traditions are consistent with modern ideas about intuition in management decision making. (...) A hypothetical case is considered where the complexity of ethical decision making in a group context illustrates the importance of intuitive, phronësis-like judgment. It is then noted that both Aristotelian and Confucian virtue ethics include suggestions about support for moral decision making that are also consistent with modern theory. (shrink)

This literature review systematically synthesizes studies that link consumer research to differences and similarities in virtue ethics between the East and the West, with a focus on early Chinese and ancient Greek virtue ethics. These two major traditions provide principles that guide consumer behavior and thus serve as a background to comparatively explain and evaluate the ethical nature of consumer behavior in the East and the West. The paper first covers Eastern and Western theoretical and normative approaches of virtue ethics (...) in the field of consumer research. The subsequent systematic literature review then synthesizes empirical works in this field. Since only a few papers adopt a cross-cultural consumer research perspective, one of the main aims of this review is to encourage scholars to pursue both theoretical and empirical cross-cultural consumer research on virtue ethics. To this end, the paper closes by suggesting some fruitful directions for future research to stimulate this relatively under-researched area. (shrink)

Using a sample of 12,061 firm-year observations from the Chinese stock market for the period of 2001–2011 and geographic-proximity-based Confucianism variables, this study provides strong evidence that Confucianism is significantly negatively associated with minority shareholder expropriation, implying that Confucianism does mitigate agency conflicts between the controlling shareholder and minority shareholders. This finding suggests that Confucianism has important influence on business ethics, and thus can serve as an important ethical philosophy or social norm to mitigate the controlling shareholder’s unethical expropriation behavior. (...) Moreover, my findings reveal that the nature of the ultimate owner attenuates the negative association between Confucianism and minority shareholder expropriation, suggesting that Confucianism’s negative impact on minority shareholder expropriation is less pronounced for state-owned enterprises than for non-state-owned enterprises. The above results are robust to a variety of sensitivity tests and my findings are valid after controlling for the potential endogeneity between Confucianism and minority shareholder expropriation. (shrink)

Confucianism is potentially relevant to business ethics and business practice in many ways. Although some scholars have seen Confucian thought as applicable to corporate social responsibility :433–451, 2009) and to corporate governance :30–43, 2013), only a few business ethicists :415–431, 2001b; Journal of Business Ethics 116:703–715, 2013; Romar in Journal of Business Ethics 38:119–131, 2002; Lam in The Analects, Penguin Classics, London, 2003; Chan in Journal of Business Ethics 77:347–360, 2008; Woods and Lamond in Journal of Business Ethics 102:669–683, 2011) (...) have taken seriously the possibility that Confucius may have important insights to offer regarding virtue ethics, which has now become the most popular normative theory as evidenced by the number of recent articles published in business ethics journals :287–318, 2017). This paper aims to help rectify this oversight. The paper focuses on several distinctive aspects of Confucian ethics, discussing both how Confucius’ approach differs from Aristotelian virtue ethics in significant ways and how these key differences suggest numerous directions for future research. (shrink)

This paper reports the results of a survey of 842 undergraduate business students in four nations - the United States of America, the Peoples' Republic of China, Japan, and the Republic of Korea. This survey asked students to respond to four scenarios with potentially unethical business behavior and a string of questions related to the importance of ethics in business strategy and in personal behaviors. Based on arguments related to differences in recent historical experiences, the authors suggest that student responses (...) may be as different within the East Asian environment as they are between this environment as a whole and the USA. Survey results indicate a greater perception of ethical problems and more importance placed on ethics per se in business practices, as well as less of an emphasis on social harmony on the part of USA students. At the same time, substantial national differences in response are also witnessed within the set of East Asian students. A priori expectations as to the manner in which these East Asian responses should vary based on differences in recent historical experiences are partially, but not fully, supported. The authors argue that the key value of the reported research rests on a demonstration that national differences within a common cultural area can be as great as differences across cultural areas and that practitioners of global business must fine-tune their expectations as to acceptable business and personal actions to accommodate specific national historical experiences to be effective. (shrink)

Not only individuals and firms, but also families engage in business as a social activity and this is true beyond the case of family businesses. Cultural differences in the way families are construed might influence the way they do business. There are different types of families, and among these are those described by Aristotelian and Confucian traditions, representing the West and the East respectively. The literature on virtue in business has been dominated by a Western—mainly Aristotelian—tradition : 8–24, 2014), neglecting (...) the role of the family and focusing on the individual. In this paper, we seek to fill this gap by explaining differences and similarities in the normative evaluation of certain family-related business attitudes and practices, in light of Confucian and Aristotelian virtue ethics standards. After comparing the structure, organization and dynamics of Aristotelian and Confucian families, we shall draw some inferences regarding “virtuous” or excellent business practices—such as nepotism, bribery, gift-giving and guanxi and attitudes—on codified rules or written norms. For this analysis we shall make use of Aristotelian and Confucian ethical accounts as well as inputs from Family Science applied to organizations, which provides conceptual categories to compare the two traditions. Thus we hope to contribute not only to the comparative study of Aristotelian and Confucian virtue ethics in business, but also to the understanding of the distinctive role of families, raising cultural awareness for what may be considered virtuous business practices according to the Aristotelian and Confucian traditions. (shrink)

The classical literature on Confucianism exhorted leaders to practice five core virtues as the basis for becoming a noble person and for sustaining harmonious communities built on trust and good example. We present a theory about how the senior management in modern corporations, by enacting the five Junzi virtues through virtuous environmental, social, and governance policies and practices, might inspire virtue-based relationships between superiors and subordinates and between employees. We argue that if middle managers and employees observe and experience that (...) their firm’s ESG policies and practices are virtuous, they would feel encouraged to practice those virtues in their own behavior, and thus embody and promote interpersonal harmony. We provide three types of illustration for our theory. First, we map the five Junzi virtues to the content of a specimen ESG report. Second, we map seven subtypes of servant leadership behavior of middle managers to the five Junzi virtues. Third, we map seven types of employee organizational citizenship behavior to the five Junzi virtues. (shrink)

This study extends previous literature on the association between Confucianism and corporate decisions by examining Confucianism’s influence on board gender diversity. Using a sample of Chinese listed firms during the period of 2001–2011 and geographic-proximity-based Confucianism variables, I provide strong and consistent evidence to show that Confucianism is significantly negatively associated with board gender diversity, suggesting that the proportion of women directors in the boardroom is significantly lower for firms surrounded by strong Confucianism atmosphere than for firms located in regions (...) with weak Confucianism atmosphere. This finding also implies that Confucian philosophical system has important impacts on business ethics and women’s status in corporate governance. Moreover, GDP per capita, the proxy for economic development level in a province in which a firm is located, attenuates the negative association between Confucianism and board gender diversity. Above results are robust to different measures of Confucianism and board gender diversity and are still valid after controlling for the potential endogeneity between Confucianism and board gender diversity. (shrink)

Virtue ethics is widely recognized as one of three major approaches in contemporary moral philosophy and arguably the most influential normative theory in business ethics. Despite its rich pedigree in Western and Eastern philosophy, most work in contemporary virtue ethics is part of the Western tradition. The purpose of this Thematic Symposium is to foster dialogue between Western and Eastern conceptions of virtue in business and engage them with questions about the nature, justification, and content of the virtues in each (...) tradition. This Editorial offers a brief introduction to the problem, a summary of Western and Eastern varieties of virtue ethics, an overview of the six articles included in this Thematic Symposium, and a section with five common themes for further exploration and future collaborative research. (shrink)

Guilt appeals have been found effective in stimulating ethical consumption behaviors in western cultures. However, studies performed in Confucian cultural contexts have found contradictory results. We aim to investigate the inconclusive results of research on guilt and ethical consumption and to explain the inconsistencies. We aim to better understand the influence of guilt on ethical consumption in a Chinese Confucian context and to explore the culturally relevant individual-level concept of interdependent self-construal as a moderator. We build our argument on the (...) Confucian ethics of ren-yi-li where the virtue of propriety specifies role-based obligations depending on the proximity of one’s relationship to others and may thus limit ethical behaviors that are directed to those who are relationally distant. We hypothesize a positive relationship between guilt and ethical consumption that is, however, negatively moderated by interdependent self-construal. Put another way, consumers who define themselves strongly through their relationships with close others are less likely to compensate for guilt through ethical consumption. We find the hypothesized model supported in a survey of 314 Chinese consumers. The results suggest that guilt appeals can stimulate ethical consumption in Confucian cultures. However, guilt appeals may not be enough, as the moderating effect suggests that they will be most effective when combined with an ethical consumption initiative that conforms to the Confucian li principle. As this principle implies prioritizing close over distant relationships, it follows that consumers may be more likely to respond to guilt appeals which are linked to ethical consumption initiatives whose beneficiaries they feel connected to. (shrink)

Because of the importance of Confucian doctrines in shaping ethical business practices under Chinese leadership, revealing the roles of other Chinese ethical doctrines in modern Chinese leadership is informative. A thorough understanding of the ethical foundations of Chinese leadership is necessary for fruitful interaction with Chinese leaders, according to cultural fit theory. The present study illustrates the philosophical foundations of business management, based on dialogues with five eminent corporate executive officers. It reveals that the CEOs practice a style of Chinese (...) leadership synthesizing Confucian, Daoist, Mohist, and Legalist doctrines. The Confucian doctrines advocate benevolence, harmony, learning, loyalty, righteousness, and humility. They are the most prevalent tenets that support paternalism and collectivism. The Daoist doctrines emphasize flexibility and reversion. They bolster the leader's forbearance. The Mohist doctrines underpin thrift and working with the masses whereas the Legalist doctrines inculcate self-control and innovativeness. Hence, contemporary Chinese leadership does not rely exclusively on Confucian ethics and this reflects evolution over 1000s of years. (shrink)

The paper concentrates on the Chinese philosophical strand of Daoism and analyses in how far this philosophy can contribute to new directions in management theory. Daoism is an ancient Chinese philosophy, which can only be traced back roughly to about 200 or 100 BC when during Han dynasty the writers Laozi and Zhuangzi were identified as “Daoists”. However, during Han dynasty Daoism and prevalent Confucianism intermingled. Generally, it is rather difficult today to clearly discern Daoist thought from other philosophical strands (...) as in the same period also Buddhism, Mohism and Legalism shaped contemporary thinking. Furthermore, there is a difference between the religious practice of Daoism in the sense of popular religion and the theoretical basis of Daoist thought presented in Laozi and Zhuangzi. The religious practice in contrast can have very mystical elements, which are linked to superstition. Moreover, there is also the question of in how far Daoist thought and practice is still prevalent at all in Chinese society today. Hence, the picture of Daoism is heterogeneous, first, regarding the question of what can be defined as the “original core” of Daoism, second, the difference between thought and religious practice, and third, the question of the prevalence of Daoist thought in China today. This paper offers a broader discussion regarding the potential ways of application of Daoist thought today over five parts. First, it illuminates the most important values taught under the name of Daoism. Thereby, it focuses on the Daoist thought and leaves out the actual religious practice together with its mystical elements. Second, these values are then put into the management context to analyse in how far Daoism can broaden our contemporary understanding of management in general and different management styles in particular. Third, Daoism in a management context is then contrasted with the comparably rigid Confucian doctrine also applied in a business context. Here, the application of Daoist and Confucian thought in the fields of leadership, management and corporate ethics is presented and compared. Fourth, insights into the real business practice in China regarding Chinese philosophies like Daoism and Confucianism in fields like management, strategy or corporate ethics are provided. Fifth, an outlook is presented where Daoism is discussed in the context of contemporary debates on sustainability and CSR. Here, the proposed paper illuminates in how far the philosophy of Daoism can also contribute to a more holistic understanding of sustainability and CSR today, thereby contributing to more innovative solutions in management. (shrink)

For Aristotle, virtues are neither transcendent nor universal, but socially interdependent; they need to be understood chronologically and with respect to character and context. This paper uses an Aristotelian lens to analyse an especially interesting context in which to study virtue—the state’s response when social order breaks down. During such periods, questions relating to right action by citizens, the state, and state agents are pronounced. To study this, we analyse data from interviews, observation, and documents gathered during a 3-year study (...) of riot policing in the U.K. In doing so, we contribute by joining a number of other conversations within JBE, suggesting detailed empirical examination of this context is useful in opening up considerations relevant to ‘virtue’ elsewhere. This extreme context helps us raise interesting and empirically informed questions that can encourage future theoretical and empirical contributions to virtue in business ethics. One such question is on the role of habituation in virtue, which is not just the inculcation of a reflex or automaticity, but can also refer to a trained and developed tendency to behave in the right way, for the right reasons, at the right time. Whilst we stop short of a simplistic alignment of habituation and virtue, we show ways in which it can inform understanding of both courage and phronēsis. (shrink)

Virtue ethics is regarded as the key in search of moral excellence among corporations. Yet, there are limited works to empirically investigate what virtuous character morally good corporations is expected to exhibit in the course of business from the perspective of customers. To fill this gap, we argue that customers are to evaluate firm’s virtuous character using Confucian cardinal virtues (ren, yi, and li) and perceived virtuousness determines customer loyalty. We test this argument using a sample of 276 Hong Kong (...) Chinese. The result suggests that a corporation not only has to offer a good value and high quality to customers but also needs to develop and acquire virtuous character in retaining customer loyalty. Firm has to embrace ren, yi, and li as the primary business goal. In fact, they are not the means but the end in themselves. The continuous pursuit of these cardinal virtues at the firm level not only establishes proper corporate values but also enables a firm to act morally in the course of business. Such kind of firm is known as junzi corporation. (shrink)

Confucianism has attracted some attention in business ethics, in particular as a form of virtue ethics. This paper develops ideas about Confucianism in business ethics by extending discussion about Confucian ideas of ritual. Ritual has figured in literature about organisational culture, but Confucian accounts can offer additional ideas about developing ethically desirable organisational cultures. Confucian ritual practice has diverged from doctrine and from the classical emphasis on requirements for concern and respect as parts of ritual. Despite some differences of emphasis (...) amongst early writers, classical texts like the Analects and Mencius allow for the importance of ritual as opportunity for interpersonal encounter. These are texts that bring out the flexibility and context-sensitivity of ritual, with associated implications about the need for care and attention to other individuals. They eschew ritual as unthinking repetition, in favour of ritual as meaningful expression. The mutual awareness such ritual can engender is an important part of human existence. Such ritual is a means to solving coordination problems through common knowledge, as opposed to unthinking routine. Undue routinisation can be one problem with organisational ritual, while another can be use of ritual as a means of oppressive control. In organisations, ritual should satisfy general requirements of concern and respect, and should maintain opportunities for mutual encounter. The difference between arrangements which do or do not offer such opportunities may suggest lines of development for virtue ethics in business. (shrink)

Although Confucianism is a resilient cultural tradition in Asian societies, its role in their corporate governance systems is ambiguous. Confucian values have been pushed to the periphery because of a preoccupation in these countries to emulate corporate governance systems from the West. This article argues that Confucianism has much to offer in enhancing director conduct and corporate governance standards. As the attention of the global business community turns eastwards, it is opportune to revive interest in Confucianism and to explore ways (...) in which it can be integrated formally into companies' governance systems. (shrink)

China’s business sector has been described as facing serious ethical challenges, including corruption and bribery, distributive injustice, environmental pollution, and misspending of public funds. Unethical decision-making in business represents a potentially destabilizing force for government, business, and society. Recent calls for research that is detailed, nuanced, contemporary, and context-specific on the effects of Asian national business systems on ethical business practices, according to Pereira et al. (2017), are particularly relevant for countries including China that possess the entanglement of a “multiplexity”-multiple (...) business systems co-existing within the same economy reliant on ethics and institutional trust for effective functioning, as discussed by Witt and Redding (2013). To this end, we conduct exploratory research investigating the relationship among Confucian values, Hofstede’s national culture, and ethical decision-making within a business context in China. Using data collected from 550 Chinese MBA students and business executives, results indicate that although both Confucian values and Hofstede’s national culture dimensions are associated with the use of egoism and justice in ethical decision-making scenarios, differential patterns emerged in these relationships. Confucian values were more predictive of outcomes. Of particular interest were the relationships between Confucian values and ethical criteria of yi and justice as well as li and zhi with egoism. Results suggest if the goal is enhancing institutional trust through an increased use of more principled justice-oriented ethics in business in China, an emphasis should be placed on yi (righteousness), coupled with a deemphasis on hierarchy and tradition in the form of li (ritual propriety) and zhi (wisdom). Including love of learning (haoxue), trust (xin), a long-term orientation, and individualistic messages oriented towards family and self-sufficiency may also strengthen overall ethical decision-making for SMEs, MNCs, and SOEs in navigating a multiplexity environment. (shrink)

Originated in the West, stakeholder theory is normatively anchored in Western value systems. Differences in value orientations and ethical systems in this global age call for culturally pertinent stakeholder theory. In this article, we argue that Confucianism forms an additional normative basis for stakeholder theory, appropriate for a Confucian context. We demonstrate it through application of Confucianism in major stakeholder relationships. The Confucian stakeholder theory provides a meaningful addition to the corpus of stakeholder literature.

The main aim of the paper is to show an existential religious model of business leadership. We want to defend the thesis that leaders, who consider existing norms and regulations, have the greatest influence on how organisational aims are achieved. Thus, based on the concept of Kierkegaard’s modes of existence, we show that the individual values and motives of leaders’ behaviour influence the shape of the leadership itself as well as the management of an organisation. On the basis of a (...) literature review, we propose the following connections: an aesthetic mode with instrumental motives which result in the shareholder perspective; an ethical mode of existence with normative motives which lead to the stakeholder perspective; and the spiritual mode of existence with transcendental motives which enable leaders to introduce a holistic perspective of management. However, we cannot link certain motives with a particular type of leadership, as leaders with different modes of existence might practice the same type of leadership (i.e., leadership based on values, authentic leadership) and combine various types of leadership in their actions. The paper might provide a theoretical basis for empirical research on leadership and managerial behaviour. (shrink)

Business Ethics: A European Review, EarlyView.

This article introduces a non-Anglophone concept of gong qi as a metaphor for ‘corporation’. It contributes an endogenous perspective from a Sino-Japanese organizational context that enriches mainstream business ethics literature, otherwise heavily reliant on Western traditions. We translate the multi-layered meanings of gong qi based on analysis of its ideograms, its references into classical philosophies, and contemporary application in this Japanese multinational corporation in China. Gong qi contributes a perspective that sees a corporation as an inclusive and virtuous social entity, (...) and also addresses the elusive, implicit, and forever evolving nature of organizational life that is rarely noticed. We propose gong qi can be applied in other organizations and wider cultural contexts to show a new way of seeing and understanding business ethics and organization. Rather than considering virtue as a list of definable individual qualities, we suggest that the metaphor of gong qi reveals how virtue can be experienced as indeterminate, yet immanently present, like the substance of emptiness. This, then allows us to see the virtue of immanence, the beauty of implicitness, and hence, the efficacy of gong qi. (shrink)

This study investigates the relative impacts of the facial width-to-height ratio on the first impressions business professionals form of business consultants when seeing their photographs on a corporate website or LinkedIn page. By applying conjoint analysis on field experiment data, we find that in a zero-acquaintance situation business professionals prefer low-fWHR business consultants. This implies that they prefer a face that communicates trustworthiness to one that communicates success. Further, we have investigated the words that business professionals use to describe their (...) preferred consultant. These approach motivations help practitioners to improve the picture-text alignment. The results underline the necessity to critically assess the pictures and text used on websites and media platforms such as LinkedIn for business purposes, and to see them as a key element of business and self-communication that can be altered in order to improve business ‘mating.’. (shrink)

Rudyard Kipling famously penned, “East is East, West is West, and never the twain shall meet.” His poetic line suggests that Eastern and Western cultures are irreconcilably different and that their members engage in fundamentally incommensurable ethical practices. This paper argues that differing cultures do not necessarily operate by incommensurable moral principles. On the contrary, if we adopt a virtue ethics perspective, we discover that East and West are always meeting because their virtues share a natural basis and structure. This (...) article sketches the rudiments of what a universal virtue ethic might look like. Such an ethic is especially relevant and valuable in this era of global business. (shrink)