Confucian Philosophy and Corporate Responsibility

Freedom devoid of responsibility would result in the collapse of the social network. It would cause strife among individuals, between individuals and society, and essentially would lead to the sacrifice of the future in order to fulfill short-term desires. Coming under much scrutiny for allegedly doing just this is today's dominant institution, a legal establishment with pervasive influence on contemporary life: the modern corporate enterprise. We live in a world plagued with human exploitation and severe environmental degradation. Many would claim that behind this unfair and unsustainable global situation lies the profit-hungry hand of corporate power. Accused and often found criminally guilty in court of having enormous and often hidden harms, one might ask exactly what a corporations ethical responsibilities are towards the world in which it functions. Attitudes toward the subject of responsibility are globally and historically diverse, however. Due to cultural differences certain traditions are heavily concerned with responsibility and societal harmony while others are far more preoccupied with free choice and individual rights.

Looking to Confucianism, the philosophy of Confucius (or King fu-tzu), one can see a philosophy that places a great deal of emphasis on human responsibility. Confucius is, in fact, the most influential thinker in human history if influence were to be measured by the number of people who have lived in accordance with a philosopher's vision. (Ames, 28) Turning to the scriptures outlining the teachings of this Chinese sage who lived over 2,500 years ago, it would be unproblematic to prove that the modern corporation has been and continues to be unethical by Confucian standards. That is not the purpose of this essay, however. This essay will explore concept of corporate institutions and their ethical accountability using Confucian philosophy a guide.

For the purposes of this essay, focus will be given to the Confucian Analects and interpretations of it. This compilation of quotes, conversations and anecdotes is also referred to as The Lunyu and remains the primary source document of Confucian philosophy. Interestingly, despite being revered as Chinas first and greatest teacher, there is no coherent system of thought laid down by Confucius himself. Much like Socrates, Buddha and Jesus Christ, Confucius' many disciples are entirely responsible for the surviving compilation. The Analects is rich in subtle insinuation and tautology making it seem disjointed and unclear to the western reader. With the help of translations and interpretations, however, it can be put into context.

When the stables were burnt down, on returning from the court, Confucius said, "Was anyone hurt?" He did not ask about the horses. (Analects X. 11, Ames)

This well-known anecdote, for example, gains far deeper meaning when the reader is made aware that in Confucius' time, horses were up to tenfold the price of a stableman. Confucius demonstrates here, a priority of human life above all else. Through interpretation, this seemingly simplistic anecdote, among others, has led various Western commentators to refer to Confucian teachings as an important variant of humanism.

While this essay does not claim that Confucianism can provide a new moral code for the global village, or restore ethics to the western construct of the last century known as the corporation, it is key that one acknowledges the values inherent in Confucian philosophy. The three essential values expressed through Confucian teaching are filial and political authority, ritual, and humaneness. These values have their basis in pre-existing Chinese culture and for this reason, Confucius referred to himself as a "transmitter who invented nothing". (Xinzhong. 24) Also prominent in both Confucian philosophy and Chinese culture is the Eastern value of collectivism. Whereas North America and much of Western Europe are politically designed on the premise of upholding individualistic values, China's cultural collectivism puts the lives of many before the life of an individual. (Stevens. 114) Looking at the author of The Corporation Joel Bakan's definition, there appears to be clear evidence of potentially harmful individualism in a corporation's determined motives.

A corporation is an institution with a unique structure and set of imperatives that direct the action of the people within it. It is also a legal institution, one whose existence and capacity to operate depend on the law. The corporation's legally defined mandate is to pursue, relentlessly and without exception, its own self-interest, regardless of the often harmful consequences. (Bakan. 2)

In truth, the publicly traded corporation has been widely criticized due to the fact that its responsibility rests exclusively with its shareholders as opposed to resting with society at large. The essential goal of a corporation as an institution is to create monetary wealth for those in communal possession of it. This leads, however, to another facet of the corporation in terms of Confucian philosophy. It could be said that a corporation is, in fact, a microcosmic reflection of a unified, collectivist whole. Much as Confucius defined the ideal Confucian monarchy as a reflection of the patriarchal family unit, (McGreal. 57) the corporation can also be seen as a cooperative organization, modeled after a collectivist monarchy. Confucius placed great value on unifying cultural ideals, and a corporation is undoubtedly a group concept with a common, unifying goal. If the unifying goal of profit is indeed benefiting the group, it must also be noted that in Confucianism, egoism is not necessarily negative in itself.

While the limitation of undivided self-interest is the essence of countless world philosophies, it is clear that Confucian philosophy does not promote the absolute denial of self. In fact, recognition is made in The Analects that all people have selfish motivations. Warnings are made that material wishes should not stand in the way of ren (respectable conduct) however no judgement is made regarding the value of these desires as being either ethical or unethical.

Wealth and honor are what people wantÐ'...poverty and disgrace are what people deplore. (Analects. IV.5)

Acknowledging this self-interested aspect of human nature, Confucius went