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Tuesday, 28 July 2020

Why Chinese business succeeds while others fail?


The answer is very simple. It is Taoism that makes Chinese business do well, achieve big time success and gallop towards great heights whereas many competitors bite the dust especially in the western world. A business strategist must understand the most important principles of Taoism practised in China before he gets into his strategy drawing board:

Before venturing further, let me explain the fundamental duality of Taoism that suggests the interplay between “De” and “Wu Wei” The meaning of “De” is “Virtue” that reflects and embodies in every human activity including business undertakings. On the other hand “Wu Wei” means “Do nothing”. You might be startled to know why “Do not take any action”, because you are always nagged by the management to take some form of action while running a business. States Lao Tzu the founder of Taoism, “Do nothing and there is nothing that is not done”

Looks like an oxymoron. In fact what Taoism implies is not taking action that is non – purposive, non – productive and non – deliberate. The primary intent of business is to achieve a host of purposes. According to Laozi contentment must be the primary intent. In the case of business stakeholder value must be the primary intent. Following that there would be several other purposes such as achieving number one position in terms of competition, market share and revenue generation.  All these purposes must be attuned to the centrality that is stakeholder value.

Towards achieving purposes there is an absolute need to conform to ethics and standards which is called as “De” or virtue. All Chinese businesses work on the ethical principles of bringing equality and equanimity between the individual business and the larger society that provides raw materials, human resources and other inputs. Furthermore there is corporate responsibility towards protecting environment, human welfare and the wellbeing of the society at large.

While profit making is the key driver in every business, there is dichotomy between desire and limitation. A company can dream to be the one and only player in the market, just a wild desire, considering the limited amount of resources available under its command or the lack of near total market acceptance it can aspire for. Hence limitation factor overweighs upon desire. Chinese business ethics dictate setting of reasonable and achievable goals. Business strategist in China is compelled to make the right choice amongst alternative courses of actions. Truly, Chinese business dwells upon the dictum “means-ways–ends” critically yet with open mind. Interestingly Taoism teaches Chines business strategists basic principle of working out compromise or trade-off in order to bring a balance between desire and limitation as well as virtue and non-action.

 
Cheers!

 
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677


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