Skip to main content
  • 5396 Accesses

Abstract

This chapter takes Daoism as a body of philosophical ideas and investigates some of its major implications for business ethics. The major question is: Could Daoism as articulated by Laozi provide a philosophical basis for developing business ethics for today’s corporations? The core ideas of Daoism which include Dao, De and wu wei, and its cardinal values are introduced. The Daoist doctrine of statecraft is discussed by invoking the attributes of a sage who serves as an ideal political ruler. A correlated doctrine of ethical firm-craft is constructed as a way to examine how the Daoist ideas would flesh out in business ethics terms in the corporate domain. Whether and how Daoism could ground business ethics will be addressed by examining the Daoist doctrine of Dao, ethical organization and management, wu wei management, and ethical leadership. The Daoist doctrine pertaining to business ethics is further scrutinized against the backdrop of the environmental crisis in China as a reality test for the ideas. The implications of the Dao principle, wu wei management, and ethical leadership for business are envisioned.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Similar content being viewed by others

Notes

  1. 1.

    The numbers in round brackets represent the respective chapters in Daodejing (References and translations are from [9, 10], with my amendments).

  2. 2.

    In some quoted passages, the first person pronoun “I” apparently refers to the sage.

References

  1. Chan A (2011) Laozi. In: Zalta EN (ed) The Stanford encyclopedia of philosophy. The Metaphysics Research Lab, Center for the Study of Language and Information, Stanford University, Stanford. http://plato.stanford.edu/archives/spr2011/entries/laozi/

  2. Clarke JJ (2000) The Tao of the west: western transformations of Taoist thought. Routledge, London

    Google Scholar 

  3. Csikszentmihalyi M, Philip JI (eds) (1999) Religious and philosophical aspects of the Laozi. State University of New York Press, Albany

    Google Scholar 

  4. Hansen C (2011) Taoism. In: Zalta EN (ed) The Stanford encyclopedia of philosophy. The Metaphysics Research Lab, Center for the Study of Language and Information, Stanford University, Stanford. http://plato.stanford.edu/archives/spr2011/entries/taoism/

  5. Kohn L (2001) Daoism and Chinese culture. Three Pines Press, Cambridge, MA

    Google Scholar 

  6. LaFargue M (1994) Tao and method: a reasoned approach to the Tao Te Ching. State University of New York Press, Albany

    Google Scholar 

  7. Roberts M (2001) (trans) Dao De Jing: the book of the way. University of California Press, Berkeley

    Google Scholar 

  8. Waley A (1958) The way and its power: a study of the Tao Te Ching and its place in Chinese thought. Grove, New York

    Google Scholar 

  9. Chan WT (1963a) (trans) The way of Lao Tzu, Tao-te-Ching, translated with introductory essays, comment, and notes. Prentice Hall, Upper Saddle River

    Google Scholar 

  10. Chan WT (1963) A source book in Chinese philosophy. Princeton University Press, Princeton

    Google Scholar 

  11. Buffett M (2006) The Tao of Warren Buffett: Warren Buffett’s words of wisdom: quotations and interpretations to help guide you to billionaire wealth and enlightened business management. Scribner, New York

    Google Scholar 

  12. Capra F (1975) The Tao of physics. Wildwood House, London

    Google Scholar 

  13. Carbonetti J (1998) The Tao of watercolor: a revolutionary approach to the practice of painting (Zen of creativity). Watson-Guptill, New York

    Google Scholar 

  14. Flaws B (1998) The Tao of healthy eating: dietary wisdom according to traditional Chinese medicine. Blue Poppy, Boulder

    Google Scholar 

  15. Gross PL, Shapiro SI (2001) Tao of photography: seeing beyond seeing. Ten Speed, Toronto

    Google Scholar 

  16. Herman SM (1994) The Tao at work: on leading and following. Jossey-Bass, San Francisco

    Google Scholar 

  17. LaFargue M (2003) The Tao of coaching: boost your effectiveness at work by inspiring and developing those around you. Profile Books, London

    Google Scholar 

  18. Lee YT, Han AG, Byron TK, Fan HX (2008) Daoist leadership: theory and application. In: Chen CC, Lee YT (eds) Leadership and management in China – philosophies, theories, and practices. Cambridge University Press, Cambridge

    Google Scholar 

  19. Messing B (1988) The Tao of management: an age old study for new age managers. Humanics trade, Georgia

    Google Scholar 

  20. Yang XJ (1994) Daoism and business management. The People University of China Press, Beijing (in Chinese)

    Google Scholar 

  21. Ames RT, Hall DL (2003) (trans) Daodejing–making this life significant–a philosophical translation. Ballantine Books, New York

    Google Scholar 

  22. Ivanhoe PJ (2002) (trans) The Daodejing of Laozi. Hackett, Indianapolis

    Google Scholar 

  23. Kohn L, LaFargue M (eds) (1998) Lao-tzu and the Tao-Te-Ching. State University of New York Press, Albany

    Google Scholar 

  24. Kohn L (ed) (2000) Daoism handbook. Brill, Leiden/Boston

    Google Scholar 

  25. Lau DC (1963) Lao Tzu Tao Te Ching. Penguin, Harmondsworth

    Google Scholar 

  26. Legge J (1962) The texts of Taoism, Part 1. The sacred books of the east, vol 39. Dover, New York, 1891

    Google Scholar 

  27. Liu X (2009) Daoism (I) Lao Zi and Dao-De Jing. In: Mou B (ed) History of Chinese philosophy. Routledge, London/New York

    Google Scholar 

  28. Mair V (1998) Wandering on the way: early Taoist tales and parables of Chuang Tzu. University of Hawaii Press, Honolulu

    Google Scholar 

  29. Moeller HG (2006) The philosophy of the Daodejing. Columbia University Press, New York

    Google Scholar 

  30. Ames RT (ed) (1998) Wandering at ease in the Zhuangzi. State University of New York Press, Albany

    Google Scholar 

  31. Graham AC (1981) Chuang Tzu: the inner chapters. Allen and Unwin, London

    Google Scholar 

  32. Hansen C (1992) A Daoist theory of Chinese thought. Oxford University Press, New York

    Google Scholar 

  33. Roth H (2011) Zhuangzi. In: Zalta EN (ed) The Stanford encyclopedia of philosophy. The Metaphysics Research Lab, Center for the Study of Language and Information, Stanford University, Stanford. http://plato.stanford.edu/archives/spr2011/entries/zhuangzi/

  34. Watson B (1968) The complete works of Chuang Tzu. Columbia University Press, New York

    Google Scholar 

  35. Wagner RG (2003) A Chinese reading of the Daodejing: Wang Bi’s commentary on the Laozi with critical text and translation. State University of New York Press, Albany

    Google Scholar 

  36. Chan AKL (1991) Two visions of the way: a study of the Wang Pi and Ho-Shang-Kung commentaries on the Lao-tzu. State University of New York Press, Albany

    Google Scholar 

  37. Chan AKL (1998) A tale of two commentaries: Ho-Shang-Kung and Wang Pi on the Lao-tzu. In: Kohn L, LaFargue M (eds) Lao-tzu and the Tao-te-ching. State University of New York Press, Albany, pp 89–117

    Google Scholar 

  38. Lynn RJ (1999) The classic of the way and virtue: a new translation of the Tao-Te Ching of Laozi as interpreted by Wang Bi. Columbia University Press, New York

    Google Scholar 

  39. Rump A (1979) Commentary on the Lao-tzu by Wang Pi. In Collaboration with Wing-tsit Chan. University of Hawaii Press, Honolulu

    Google Scholar 

  40. Ip PK (2009) Is Confucianism good for business ethics in China? J Bus Ethics 88:463–476

    Article  Google Scholar 

  41. Graham AC (1989) The disputers of the Tao. Open Court, LaSalle

    Google Scholar 

  42. Hansen C (1983) A Tao of Tao in Chuang Tzu. In: Victor M (ed) Experimental essays on Chuang Tzu. University of Hawaii Press, Honolulu

    Google Scholar 

  43. LaFargue M (1992) The Tao of the Tao Te Ching. State University of New York Press, Albany

    Google Scholar 

  44. Roth HD (1999) Original Tao: inward training (Nei-yeh) and the foundations of Taoist mysticism. Columbia University Press, New York

    Google Scholar 

  45. Liu X (1991) Wuwei (non-action): from Laozi to Huainanzi. Taoist Resour 3(1):41–56

    Google Scholar 

  46. Slingerland E (2003) Effortless action: Wu-Wei as conceptual metaphor and spiritual ideal in early China. Oxford University Press, New York

    Google Scholar 

  47. Bowie NE (ed) (2002) The Blackwell guide to business ethics. Blackwell, Oxford

    Google Scholar 

  48. Werhane PH, Freeman E (eds) (1997) The Blackwell encyclopedic dictionary of business ethics. Blackwell, Oxford

    Google Scholar 

  49. Durlabhji S (2004) The Tao of organization behavior. J Bus Ethics 52:401–409

    Article  Google Scholar 

  50. Brown M, Treviño LK, Harrison D (2005) Ethical leadership: a social learning perspective for construct development and testing. Organ Behav Hum Decis Process 97:117–134

    Article  Google Scholar 

  51. Burns JM (1978) Leadership. Harper & Row, New York

    Google Scholar 

  52. Ip PK (2011) Practical wisdom of Confucian ethical leadership – a critical inquiry. Special issue on practical wisdom for management from the Chinese classical traditions. J Manage Dev 30:685–696

    Article  Google Scholar 

  53. Economy E (2005) The river runs black: the environmental challenge to China’s future. Cornell University Press, Ithaca

    Google Scholar 

  54. Economist (2004) A great wall of waste, special report – China’s environment, 21 Aug 2004

    Google Scholar 

  55. Ip PK (2009) The challenge of developing a business ethics in China. J Bus Ethics 88:211–224

    Article  Google Scholar 

  56. World Bank, The State Environmental Protection Administration, P. R. China (2007) Cost of pollution in china, economic estimates of physical damages. World Bank, Washington, DC. Accessible online at www.worldbank.org/eapenvironment

  57. Lu HP (2000) Cadres and corruption: the organizational involution of the Chinese Communist party. Stanford University Press, Stanford

    Google Scholar 

  58. Manion M (2004) Corruption by design- building clean government in mainland China and Hong Kong. Harvard University Press, Cambridge, MA

    Google Scholar 

  59. Pei M (Oct 2007) Corruption threatens China’s future (Policy Brief No. 55), Carnegie Endowment for International Peace, Washington DC

    Google Scholar 

  60. Sun Y (2004) Corruption and market in contemporary China. Cornell University Press, Ithaca/London

    Google Scholar 

  61. Ip PK (2008) Corporate social responsibility and crony capitalism in Taiwan. J Bus Ethics 79:167–177

    Article  Google Scholar 

  62. Chan AKL (2003) Wang Bi and the Laozi. J Chin Religion 31:127–149

    Google Scholar 

  63. Chan AKL (2009) Neo-Daoism. In: Mou B (ed) History of Chinese philosophy. Routledge, London/New York, pp 303–323

    Google Scholar 

  64. Creel HG (1970) What is Taoism? And other studies in Chinese cultural history. University of Chicago Press, Chicago

    Google Scholar 

  65. Fung YL (1983) A history of Chinese philosophy (trans: Derk B), vol 2. Princeton University Press, Princeton

    Google Scholar 

  66. Lynn RJ (1994) (trans) The classic of changes: a new translation of the I ching as interpreted by Wang Bi. Columbia University Press, New York

    Google Scholar 

  67. Nadeau RL (2006) Introduction to the world’s religion – Confucianism and Taoism. Green Wood Press, London, pp 52–53

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Po-Keung Ip .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer Science+Business Media B.V.

About this entry

Cite this entry

Ip, PK. (2013). Daoism and Business Ethics. In: Luetge, C. (eds) Handbook of the Philosophical Foundations of Business Ethics. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1494-6_11

Download citation

  • DOI: https://doi.org/10.1007/978-94-007-1494-6_11

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-007-1493-9

  • Online ISBN: 978-94-007-1494-6

  • eBook Packages: Humanities, Social Sciences and Law

Publish with us

Policies and ethics