FACULTY OF BUSINESS AND ACCOUNTANCY

SESSION 2021/2022 SEMESTER 1

CIB3001 BUSINESS ETHICS

Individual Alternative Assessment

Name : Chao Zhi Yan

Student ID : 17202971/1

Instructor : Encik Mohamad Said Bin Othman

 TABLE OF CONTENT

No Particular Page Number

1 Title, Main Issue and Keywords of the Article 1

2 Synopsis of Article Using the Spiritual East Approach 2-4

3 Relationship Between Two Groups of Stakeholders, Pertaining 5-7

to the Issue Discussed
QUESTION 1: TITLE, MAIN ISSUE AND KEYWORDS OF THE
ARTICLE

TITLE:

Is Confucianism Good for Business Ethics in China?

MAIN ISSUE:

The article analyses whether and to what degree Confucianism, as a resilient Chinese cultural
heritage, can be employed as a strong base for business practice and management in
twenty-first-century Chinese enterprises. The core feature of the Confucian Firm is outlined, and
its philosophical and cultural foundation is evaluated in terms of moral legitimacy and relevance
to modern China. The core element of Confucianism, according to the author, would benefit the
organisation, stakeholders, and community. However, he claims that the issue of human rights is
questionable in the Confucian Firm because it contradicts the Confucian Firm's characteristics.

KEYWORDS:

Confucianism, familial collectivism, Confucian Finn, Greater China, principled ethics, virtue
ethics

(119 words)

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QUESTION 2: SYNOPSIS OF ARTICLE USING THE

SPIRITUAL EAST APPROACH

KEYWORDS:

Ren, Yi, Li, Junzi, collectivism, particularism, paternalism, authoritarianism, human rights

The three elements of Confucian ethics are ren, yi, and li, which define what is morally
acceptable in human society. Ren is the ability to feel sympathy for other people. Yi is a capacity
to judge the appropriateness and the right path in behaviours, relationships, and other human
concerns. Li embodies many etiquettes and protocols in both personal and professional settings.
The practice of ren, yi, and li, as well as virtuous acts, are sure-fire strategies to accomplish
Confucianism's cardinal value of harmony in personal and interpersonal lives.

Besides, Confucians are encouraged to mimic Junzi in both thought and deed and to live
a good life that exemplifies Junzi. Junzi is an exemplary Confucian moral person who is said to
possess all of Confucianism's cardinal virtues. For example, righteousness, diligence in deeds
and duties, caution in speech and words, and zhong shu, which is the Confucian formulation of
the Golden Rule: do not do to others what you do not want others to do to you.

In the real world, a rationally reconstructed Confucian Firm may have several empirical
types, all of which share the crucial components but have different characteristics connected to
them. The fundamental Confucian ren, yi, and li aspects define and are constitutive of a firm's
goals, strategies, and practices. If it is aligned with ren, yi, and li, profit is regarded as a
legitimate goal. Profit would not be considered sinful or unethical by Confucian corporate
leaders, but it would be subjected to the moral constraint of ren-yi-li.

By upholding the concepts of ren-yi-li, the Confucian Firm would treat stakeholders with
compassion and justice. It would, for example, pay its employees fairly and provide a safe and
healthy work environment, as well as deal honestly with the delivery of goods and services.
Leaders should strive to improve themselves and strengthen a set of Junzi-defining virtues, as
well as apply the zhong shu relationship principle to all other stakeholders.

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 However, collectivism, particularism, paternalism, and authoritarianism are also
significant elements of the Confucian Firm that must be evaluated in the business environment.
When Confucian concepts are applied to the real world, these characteristics become more
conspicuous. Indeed, applying Confucianism to the corporate world has allowed us to better
focus on the company's underlying flaws and limitations.

Collectivism encourages people to prioritise collective or group goals over individual

goals. It is diametrically opposed to the individualism prevalent in Western philosophy. The most
significant collective entity is the family. As a result, family members should always put the
goals and interests of the family first. If there is a conflict between family and individual
interests, members should forgo their own interests and aims to maintain the family's interests
and goals.

Furthermore, in China, a good or proper relationship (guan xi) is seen as critical to a

company's success. This is known as particularism, and it is focused on people's personal
relationships rather than their skills or qualifications. When it comes to hiring, for example,
whether a candidate has personal ties to the hiring manager is given far more weight than
whether the candidate is suitable for the job. Guan xi was also used to get nice accommodation
and a bed in a respected hospital, as well as purchase a rail ticket during high season.

Next, paternalism, which describes the way a father takes care of his children. This
practice is usually guided by the "father knows best" mentality, which assumes that the father
always has the wisdom and ability to protect his children's interests. As a result, it has always
been practised by limiting his children's freedom of choice.

Since the family is regarded as the model human relationship, it is easy to see how
parental power evolved into authoritarianism to govern all human relationships. The family
patriarch, who sits at the top of the relationship ladder, has ultimate control and authority over
the family. Others should obey or cooperate when the patriarch makes decisions or expresses an
opinion. As "father-knows-best," there is no need for consultation and no room for disagreement.

By considering the 4 main practices in Confucianism, it draws our attention to a question.

Can the Confucian Firm pass the Corporate Social Responsibility (CSR) test? According to the

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author, corporate social responsibility (CSR) refers to a company's ethical concerns and
responsibilities to its primary stakeholders and the environment in which it operates. The Global
Compact's ten principles require businesses to support and respect human rights and labour rights
as outlined in the global declaration.

Nonetheless, the Confucian Firm's ideals of collectivism, particularism, paternalism, and

authoritarianism are incompatible with the values that underpin the human rights norm. Human
rights imply a vision of individual equality that stands against these Confucian features to
varying degrees.

To begin with, collectivism in the workplace frequently infringes on, suppresses, or even
sacrifices employees' rights in the name of the company's best interests. This is because it
subjugates individual beliefs and interests to those of groups and communities. Furthermore,
particularism would result in unfair competition in the hiring of staff, promotion, and bidding
among businesses. Equality and justice would be diminished because this practice prescribes the
allocation of rewards and opportunities based on affective associations rather than merits.

Institutionalized paternalism, on the other hand, provides an environment that stifles the
development of an individual's ability to make decisions, limiting his or her autonomy.
Individuals would become reliant on their managers, which would limit or halt their ability to
exercise initiative in the workplace. In reality, authoritarian supervisors sway employees using
raw force and authority, which is frequently lacking legitimacy. It produces excessively obedient
subordinates who are fearful of power and even worship it.

In conclusion, despite the virtues of a Confucian Firm founded on virtue, the previous
analysis has highlighted that the negative features associated with family collectivism provide
significant barriers to attaining these capacities. Virtues are loved by everybody, much like apple
pie and motherhood. Nevertheless, a virtue-based Confucian Firm will fall short of facing the
century's formidable problems unless it establishes acceptable and effective rules, as well as
effective mechanisms for preserving rights.

(1024 words)

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QUESTION 3: RELATIONSHIP BETWEEN TWO GROUPS OF
STAKEHOLDERS, PERTAINING TO THE ISSUE DISCUSSED

KEYWORDS:

collectivism, particularism, paternalism, authoritarianism, claims, interests, power, power

distance

In this section, I would discuss the relationship between two groups of stakeholders,
which are the management and the employees in a Confucian Firm. In a Confucian Firm,
management, who refers to those C-level executives are at top of the relationship hierarchy. “Flat
organizational structures” are less likely to be implemented in the firm. Indeed, the four main
practices, collectivism, particularism, paternalism, and authoritarianism have affected their
claims, interests, and power.

As mentioned in the previous section, the Confucian Firm would plan their strategies and
goal in the constraint of ren-yi-li. Thus, situations such as discrimination and oppression are less
likely to happen. In the context of collectivism, Confucian Firm emphasis on teamwork and
implement team awards instead of individual awards. On the other hand, paternalism practice
encourages the management to always take care of their subordinates and make the best decision
for them.

In a Confucian Firm, management and employees have the same interest and goals.
Confucian concept of collectivism is often stressed over individuality. All people in the
organization would perceive themselves as “we” rather than “I”. Thus, both management and
employees always prioritise the company’s mission followed by executive, responsibility and
honour. When there is conflict arises between their own goal and the company’s interest, they
would abandon their own interest and goals.

It is well knowledge that Chinese, particularly Confucians, maintain a significant power

distance in their professional lives. Power distance refers to the less powerful individual's
expectation and acceptance of the unequal distribution of power in society or organisation.
Confucianism, which was founded long ago on the necessity of clear social status, is the source

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of strict hierarchical culture. When people's social position and responsibilities toward others are
made explicit, their social status and responsibilities toward them and the rest of society become
evident.

If Confucius' teachings were implemented today, he would state that subordinates should
obey their superiors and perform in accordance with their instructions. To establish its social
position, Chinese management must distinguish itself from its subordinates. This is not done to
be cruel, but to keep its superiority over the subordinates. According to Chinese culture, an
individual can only maintain one type of relationship with a person. One is either superior or
friend.

Besides the power distance, the concept of authoritarianism has further increased the
power of management and reduced the power of employees. This practice distributes the rewards
and opportunities based on raw authority. Authoritarian influence employees using raw force and
authority, which is frequently devoid of legitimacy. In general, in an authoritarian culture, power
and authority are exercised by fiat and are based on no legitimate justification other than
authority itself. With hierarchy, authoritarianism and paternalism go hand in hand.

Paternalism limits an employee's freedom to choose with the claim that it acts in their
best interests. Management in a Confucian Firm has centralized power and assume a father-like
role. They adopt top-down communication styles and are unwilling to be delegated. Thus, it
obstructs the development of an individual's ability to make decisions, limiting his or her
autonomy. It also develops a culture of passivity among employees in the workplace and
dependency on their superiors.

Furthermore, in the context of particularism, compared to skills and qualifications, a

proper relationship is deemed to be a better way to ensure the success of employees in a
Confucian Firm. Thus, employees always tend to obey their superiors even though they know
that the instruction is unreasonable. In some cases, we can see cliques in the Confucian Firm
formed by groups of employees who have close relationships with a particular superior. They
would feel more secure as they believed that this would help them in getting a promotion in the
workplace.

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 In conclusion, managers’ power and claims are greater than their subordinates due to the
practices of paternalism and authoritarianism. Employees always wish to have a proper and close
relationship with their superiors. Nevertheless, they always share a common interest and place
the company’s interest and goal at the first place in the context of collectivism.

(672 words)