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The Role of Philosophy in International Business, Article 3

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Confucianism

By Lisa DeWaard, Ph.D. and John Lam

https://www.nationalgeographic.com/culture/article/confucius

In our work, the Hofstede 6D Model of National Culture is revolutionary in explaining why differing behaviors exist in various cultures. The values of the model guide our understanding of what drives us to have different expectations and approaches to what’s polite from one country to another. We are also often asked why particular cultures embody the values that they do. For that information, we have to turn to history, philosophy, anthropology, and other social sciences.

In Chinese and other East Asian cultures, such as those of Taiwan, South Korea, and Japan, we see clear evidence of the impact of Confucianism on the development of cultural values and business structures. While these cultures are not the same in all ways and practice Confucian values to different degrees and in different ways, it can be said that certain principles of Confucius’s teachings have shaped interpersonal interactions, approaches to politeness, responsibility for the environment and for one another, and continue to affect how businesses run today.

Confucianism (ruxue 儒学 or rujiao 儒教) is a complex and multifaceted philosophy that foregrounds moral relationships of individuals or groups in a societal context, regulated by ethical codes (li 礼) rather than a political movement and religion. It has had a profound influence on Chinese sociopolitical systems, world views, ethics, education, religions, conventions, individual and community life, as well as on scholarly traditions since the 6th-5th century BCE. It has also had a tremendous impact in other parts of East Asia: Japan, Korea, and Vietnam. (Li, 2009).

Ever since the birth of Confucianism around 2,500 years ago, generations of Confucians have long been preoccupied with social and political change. Confucius [c. 551-479 BC] moved from state to state, looking for opportunities to put his political ideals into practice, but became disenchanted with political life and settled for a teaching career. Based on the teachings of Confucius (Kong Fuzi or Master Kong) and his disciples, Confucianism was established as a state orthodoxy during the Han Dynasty (206 BCE-220 CE), and has dominated the development of Chinese civilization, shaping the political and personal lives of Chinese people. (Hang, 2011)

One side of Confucianism was the affirmation of accepted values and norms of behavior in primary social institutions and basic human relationships. All human relationships involve a set of defined roles and mutual obligations; each participant should understand and conform to his/her proper role. Starting from individual and family, people acting rightly could reform and perfect the society. (Berling, 2025)

The Lunyu 论语 (Analects), the most-revered sacred scripture in the Confucian tradition, was probably compiled by the succeeding generations of Confucius’s disciples. Based primarily on the Master’s sayings, preserved in both oral and written transmissions, it captures the Confucian spirit in form and content. (Tu, 2025)

The Five Constant Virtues are the Ren 仁  or Benevolence, Yi 义 or Righteousness, Li 礼 or Propriety, Zhi 智 or Wisdom, and Xin 信 or Trustworthiness. These virtues are the fundamental values needed in order to live a moral life according to Confucius. The five constant virtues were important in determining who was a ‘true gentleman’ in ancient Chinese society. Regardless of a person’s class or social status, he was expected to exhibit the five virtues and use proper conduct toward others. This also applied to the way in which rulers were expected to govern. (Wahing, 2021)

Filial piety is central to Confucian role ethics and is the cardinal virtue that defines, limits, or even overrides all other virtues. It serves as the foundation for proper conduct in all human relationships. In Confucian thought, the family is the primary setting where moral behavior is learned and practiced, and filial piety, showing respect, care, and obedience to one’s parents, is the first and most essential moral obligation. The traditional family hierarchy is an area where Confucian values remain strong. Within Chinese households, generational roles are clearly defined. Parents and grandparents often hold significant authority, and major decisions, such as marriage, career choices, or home purchases – typically involve their input or approval. Family gatherings, especially during key holidays like the Lunar New Year, center around honoring elders and maintaining close ties across generations.

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Confucian thought continues to shape many aspects of modern Chinese society, even without formal religious or philosophical instruction. Its influence is subtle but deeply embedded in everyday behavior, social structures, and national priorities.

One clear example is the widespread respect for authority. In workplaces, schools, and government institutions, hierarchical relationships are maintained. Superiors are addressed with formality, and their decisions are rarely questioned in public settings. This mirrors the Confucian ideal of respecting those in positions of power, so long as they act with virtue and responsibility. Order and stability are valued over confrontation, reinforcing a top-down structure in many areas of life.

Education also reflects the continuing presence of Confucian ideals. Confucius taught that learning was not only a personal pursuit but also a moral duty. In modern China, academic achievement is highly prized, and families invest considerable resources and energy into helping their children succeed in school. Entrance exams, tutoring, and extracurricular activities often dominate students’ lives. Success in education is still seen as the path to honor, responsibility, and upward social mobility, just as it was during the era of the imperial civil service examinations.

Respect for elders remains a social expectation across age groups. Older generations are treated with formality and deference in public and private life. Young people are encouraged, both culturally and legally, to care for aging parents. In fact, the government has passed laws requiring adult children to visit and support their elderly parents, reinforcing the cultural value of filial duty.

Finally, the emphasis on collective harmony continues to influence how individuals interact. In both social and professional settings, harmony and group cohesion are prioritized over personal expression or open disagreement. Conflict is often avoided, and consensus is sought to preserve relationships. This emphasis on unity, order, and mutual obligation closely follows the Confucian belief that social stability depends on each person fulfilling their role with respect and restraint.

Although China has experienced rapid modernization, economic reform, and political shifts, these Confucian values remain embedded in daily life. They continue to shape how individuals view family, authority, education, and community, showing the lasting power of Confucianism in shaping Chinese culture today.

There was, however, another side to Confucianism. Confucius not only stressed social rituals (li 礼 ), but also humaneness (ren 仁). Ren, sometimes translated love or kindness, is not any one virtue, but the source of all virtues. The Chinese character literally represents the relationship between “two persons,” or co-humanity, the potential to live together humanely rather than scrapping like birds or beasts. Ren keeps ritual forms from becoming hollow; a ritual performed with ren has not only form, but ethical content; it nurtures the inner character of the person, furthers his/her ethical maturation. Thus if the “outer” side of Confucianism was conformity and acceptance of social roles, the “inner” side was cultivation of conscience and character. Cultivation involved broad education and reflection on one’s actions. It was a lifetime commitment to character building, carving, and polishing the stone of one’s character until it was a lustrous gem.

Master Kong described his own lifetime:

“At 15 I set my heart on learning; at 30 I firmly took my stand; at 40 I had no delusions; at 50 I knew the mandate of heaven; at 60 my ear was attuned; at 70 I followed my heart’s desire without overstepping the boundaries. (2:4)”

Confucianism, as an internal and informal influence, has shaped people’s thinking and behavior, playing a significant role across social, economic, and political life (Zhang, 2013). Entrepreneurial values are often shaped by Confucian principles, which closely align with modern ideas of corporate social responsibility, especially in the context of innovation management (Fu and Tsui, 2003; Kong et al., 2022). Corporate social responsibility holds that businesses should not only pursue profit and serve shareholders but also take responsibility for society and the environment. Confucian ethics support this by fostering a sense of moral duty, encouraging companies to engage in and report high-quality social responsibility efforts.

When US nationals interact with Chinese counterparts, they typically notice the following first:

  1. Greater formality in interaction, including the use of last names and honorifics
  2. Evidence of strict hierarchical boundaries, in which only the most senior person speaks. This even extends to meetings in which the senior person is absent: junior executives are often silent on calls because they want to make sure that anything they share reflects the senior executive’s perspective properly. Giving their own ideas without checking in first to ensure that these align with their superior’s thoughts is extremely disrespectful.
  3. Participants in workshops get up and leave to take calls and then return to the workshop after the call is done. This feels disrespectful to US facilitators at times and can make it difficult to lead exercises and discussions when people are missing from the room.

Reflecting on the influence of Confucianism in Chinese society, we can explain where these behaviors come from. Formality with superiors is a matter of showing respect and filial piety. In China, there is no distinction between personal and work life, so the boss acts not only as a supervisor, but exercises their leadership in a paternal way. So the idea of filial piety extends to this relationship also. If you’re putting together an event, make sure that you know who is the most senior person among the Chinese delegation and make sure they have a seat of honor and that all questions are directed to that person. Do not expect junior executives to join in when the senior executive is present.

In order to demonstrate filial piety, it is considered both right and polite not to speak for the boss unless specifically instructed to do so. Once instructed to do so, it is imperative that the junior executive communicate what the superior wants. This shows loyalty and humility. So, if you are hosting a meeting in which you want to get the ideas of junior executives or find out what the senior executive thinks, this can only be done if the questions to be discussed in the meeting are shared in advance. In this way, the junior executive can ask the senior executive what the message is that needs to be conveyed. In addition, if the junior person has ideas they’d like to express, touching base with the senior and getting their approval is necessary. You simply cannot expect spontaneous sharing of ideas because this can cause the junior executive to lose face and potentially injure their boss’s reputation.

When conducting workshops, understand that your Chinese counterparts must prioritize their responsibilities to their own direct supervisors over the content you’re sharing. If it’s absolutely essential to your success that no one be interrupted, you should request this in advance. Let your peer (the person of your equal rank in the Chinese company) know why this is necessary and ask them to request it and make the argument for you. In this way, you are working appropriately within their hierarchical system and demonstrating respect for their cultural ways of working. If they tell you it is not possible, it’s best to allow people to leave to take these calls and do the best you can in that situation.

These adaptations may go against how you would like to work and that’s quite understandable. But these tips will help you establish a good rapport and will lead to better results. And the flip side of showing this respect is that it will be given to you as well. In Chinese culture, foreign counterparts who show respect for Chinese norms are often rewarded with loyalty in the form of future contracts.

Interested in learning more? Reach out to Lisa DeWaard, Ph.D. or John Lam with additional questions.

Works Cited

Li, J. (2009). Confucianism. In D. Pong (Ed.), Encyclopedia of modern China (pp. 347-351). Detroit, MI: Charles Scribner’s Sons.

Hang, L. (2011). Traditional Confucianism and its contemporary relevance. Asian Philosophy, 21(4), 437-445.

https://www.britannica.com/topic/Confucianism/The-Analects-as-the-embodiment-of-Confucian-ideas (Tu Weiming, 2025)

Wahing, R. J. (2021). Confucius on the Five Constant Virtues.