Business ethics japan and the global economy

BUSINESS, ECONOMY AND ETmCS IN JAPAN A Japanese Perspective of the 153 Transformation of Modern Civilizations Business Ethics and Corporate Strategy 209 in Japan Shunji Kobayashi mST

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BUSINESS ETHICS:

JAPAN AND THE GLOBAL ECONOMY

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Issues in Business Ethics

VOLUMES

Series Editors

Brian Harvey, University of Nottingham, UK

Patricia Werhane, Loyola University of Virginia, US.A

Editorial Board

Brenda Almond, University of Hull; Hull, u.K

Antonio Argandona, lESE, Barcelona, Spain

William C Frederick, University of Pittsburgh, US.A

Georges Enderle, University of Notre Dame, U.S.A

Norman E Bowie, University of Minnesota, US.A

Henk van Luijk, Nijenrode, Netherlands School of Business, Breukelen, The Netherlands

Horst Steinmann, University of Erlangen-Nurnberg, Nurnberg, Germany

The titles published in this series are listed at the end of this volume

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Library of Congress Cataloging-in-Publication Data

BUSlness ethics Japan and the global economy I edited by Thomas W

Dunfee, Yukimasa Nagayasu

p em <Issues in business ethics; v 5)

"In cooperation with the Institute of Moralogy, Kashiwa City,

Japan "

ISBN 978-904814309-2 ISBN 978-94-015-8183-7 (eBook)

DOI 10.1007/978-94-015-8183-7

1 Business ethicS Japan 2 Business ethics I Dunfee,

Thomas W II Nagayasu, Yukimasa, 1941- III Series

Printed on acid-free paper

All Rights Reserved

© 1993 Springer Science+Business Media Dordrecht

Originally published by Kluwer Academic Publishers in 1993

Softcover reprint of the hardcover 1 st edition 1993

No part of the material protected by this copyright notice may be reproduced or

utilized in any form or by any means, electronic or mechanical,

including photocopying, recording or by any information storage and

retrieval system, without written permission from the copyright owner

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List of Figures, Diagrams and Tables vii

INTRODUCTION

Global Business Ethics and Japanese Economic Morality

An Introduction and Overview

(Thomas W Dunfee, Yukimasa Nagayasu)

Business Ethics: A Japanese View

(Iwao Taka)

3

23

BUSINESS ETmCS IN A GLOBAL ECONOMY

The Role of Ethics in International Business (Thomas W Dunfee)

Globalization and Business Values in the Asian-Pacific Region

(Yukimasa Nagayasu)

International Business, A Universal Morality and the Challenge of Nationalism (Norman E Bowie) The Language of International Corporate Ethics (Thomas Donaldson)

What is Business Ethics?

BUSINESS, ECONOMY AND ETmCS IN JAPAN

A Japanese Perspective of the 153

Transformation of Modern Civilizations

Business Ethics and Corporate Strategy 209

in Japan (Shunji Kobayashi)

mSTORICAL DEVELOPMENT OF MARKET MORALITY IN JAPAN

Chapter 12 The Japanese Tradition of Economic Ethics 219

(Yukichi Shitahodo)

Chapter 13 The Japanese View of Business and Work 231

(Han-Yu Chang) Chapter 14 Economic De,velopment and Ethics in Japan 255

- A Historical Perspective

(Tsunehiko Yui)

vi

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LIST OF FIGURES, DIAGRAMS AND TABLES

(Yukimasa Nagayasu)

Acting (Georges Enderle)

Approach (Georges Enderle)

Good and the Idea of an Overlapping Consensus (Georges Enderle)

Western Companies and Labor Unions (Ken'ichi Odawara)

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NOTE ON THE CONTRIBUTORS

Nonnan W Bowie is the Elmer L Andersen Chair in Corporate

Responsibility at the University of Minnesota He is the author, co-author, editor or co-editor of twelve books and numerous articles in business ethics and political philosophy

He is currently chair of the Department of Strategic

Management and Organization and is past Executive

Secretary of the American Philosophical Association He is past president of the Society for Business Ethics and the Society for Value Inquiry

Han- Yu Chang is Professor Emeritus of Taiwan University His

publications include A Study of British Mercantilism:

1620-1720 (1954), Economic Development and Income Distribution

in Taiwan (1983), and A Study of Japanese Corporate

Management (1989)

Thomas Donaldson is the John F Connelly Professor of Business

Ethics in the School of Business, Georgetown University At Georgetown University he also holds the positions of Adjunct Professor, Department of Philosophy, and Senior Research Fellow, Kennedy Institute of Ethics Books that he has

authored or edited include: Ethics in International Business

(Oxford University Press, 1989); Ethical Issues in Business, 4th Edition (Prentice-Hall Inc., 1979-92), co-edited with Patricia

Werhane; Issues in Moral Philosophy (McGraw-Hill, Inc.,

1986); Case Studies in Business Ethics, 3rd Edition

(Prentice-Hall Inc., 1984-92); and Corporations and Morality

(Prentice-Hall Inc., 1982)

Thomas W Dunfee is the Kolodny Professor of Social Responsibility

at The Wharton School of the University of Pennsylvania At the Wharton School, he was Chair of the Legal Studies

Department from 1979-85 and 1987-91 He was President of

viii

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the American Business Law Association 1989-90, served as Editor-in-Chief of the American Business Law Journal 1975-77

and received the Distinguished Senior Faculty Award for Excellence from the ABLA in 1991 He currently is a

member of the executive committees of the Society for

Business Ethics and the Society for the Advancement of Socio-Economics His research interests focus on the

application of social contract theory to business ethics,

corporate attorney whistle-blowing, and on developing ethical standards for global business transactions He has written or edited over ten books and has published articles in a wide variety of journals in the fields of law, business and applied ethics

Georges Enderle is the Arthur and Mary O'Neil Professor of

International Business Ethics at the University of Notre Dame, Indiana He is author of several books including

Handlungs orientierte Wirtschaftsethik, Grundlagen und

Anwendungen (Action-oriented Business Ethics Foundation and Applications: 1993) and contributing co-editor of Lexikon der Wirtschaftsethik (Encyclopedia of Business Ethics: 1993)

He has written numerous articles on business ethics and is presently working on a research project on "International Business Ethics"

Shunji Kobayashi is Professor at the School of commerce, Waseda

University His publications include Study of Managerial Environment (1990), and "Political Strategy of Corporations"

(1992)

Yukiyoshi Mochizuki is Director of Research Department, the

Institute of Moralogy and Professor in the Faculty of Foreign Languages, Reitaku University His publications include:

Human Rights and Moralogy (1986), Beautiful Heart and Wonderful Life (1988), and Pleasure of Moral Practice (1990)

Yukimasa Nagayasu is Professor at the International School of

Economics and Business Administration, Reitaku University

He is also chief of the Economics Division of the Research Department, the Institute of Moralogy His books include

Ecology of Economic Civilization (1979), Principles of National Economy (1978), Principles of Political Economy (1981), and Cosmology of Economics (1991)

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Haruo Naniwada (1906-1991) was Honorary President of Kanto

Gakuen University His publications include Study of

Economic Sociology (1971), Philosophy of Crisis (1974), Theory

of Community (1982), and Morality and Economy (1983)

Ken'ichi Odawara is Professor in the Faculty of Economics, Jochi

(Sophia) University and lecturer of International Relations at the University of Tokyo His edited books include

International Political and Economic Theories (1988), and The World Economy (1982) His publications include American Disease (1980), "The Competition Principles in Japanese

Companies and Labor Unions" (1988), and "What Lessons Have Japan and the U.S Learned from Previous Bilateral Effort on Energy and Environment?" (1992)

Yukichi Shitahodo is Professor Emeritus of Kyoto University and

Advisor of the Institute of Moralogy His books are

Independent Education in Japan (1952), Education of Social Intelligence (1957), Anthropological Study of Sontoku Ninomiya (1965), Family Education and social Morality (1968), Spiritual Awakening and Human Development (1970), Drei Prinzipien der anthropologischen Padagogik (1971), and Anthropological Study of Shoin Yoshida (1988)

Iwao Taka is Assistant Professor at the International School of

Economics and Business Administration, Reitaku University, and Visiting Research Fellow at The Wharton School, the University of Pennsylvania His publications include

"J apanese History and Thought Based on a Philosophy of Sontoku Ninomiya " (1990), "From Economics to Cognitive Science" (1989), "Intuitive Decision-Making and Creative Destruction" (1987), "Japanese Entrepreneurship After World War II" (1986), and An Introduction to New Principles of Management (with others) (1985)

Tsunehiko Yui is Professor at Department of Business

Administration, Meiji University His publications include

The Development of Japanese Business: 1600-1980 (1983), Japanese Management in Historical Perspective (1989), and History of Yasuda Financial Combines (1987)

x

immensely with the bibliographies Nick Harris carefully proofed the manuscript and applied his sleuthing skills in a search for hard to find citations Jennifer and John Dunfee devoted some of their precious summer time to provide some valuable insights for the project, particularly the first chapter

xi

PART I

INTRODUCTION

INTRODUCTION: THE TWO CONFERENCES ON GLOBAL

BUSINESS ETIllCS

Japan is an important player in global markets, yet in many ways, it remains an enigma to non-Japanese Those who deal with Japanese firms and markets need to understand its hidden economic culture, work ethic, and common sense views of business thinking Japanese culture is the result of an integration of historical factors, including Shintoism, Buddhism, Confucianism and modern Western science and technology This book goes beyond stereotypical

approaches in applying a philosophical analysis to the Japanese

economic mind It also uses the methodologies of social contract and traditional applied business ethics as a theoretical framework for

discussing cross-cultural issues in global economic transactions A new Japanese approach of moral science, called "Moralogy", is explained Practical proposals, such as how to internationalize the Keiretsu system, are also advanced

Almost all books of contemporary business ethics are written primarily from the viewpoint of Western culture and economy In contrast, this book presents a multi-cultural perspective of global

business ethics Particular emphasis is given to Japanese viewpoints A

3

T.W Dunfee and Y Nagayasu (eds.), Business Ethics: Japan and the Global Ecorwmy, 3-22

© 1993 Kluwer Academic Publishers

An International Conference on Asian Economy and Culture on the theme "Globalization and Ethics of Economy" was held December 1-3,

1989 and featured presentations from Asian scholars The attendance for this conference was 211,33 academics and the rest businesspeople

In September, 1991 a second conference, featuring academics from the United States, Europe and Japan, was held on the theme "Business Ethics in a Global Economy." The 1991 conference drew 136 people, with 52 coming from academia

1989 Conference on Globalization and Ethics of Economy

This conference aimed at comparing cultural and religious diversities in economic values, with a goal of finding some common aspects among them This conference confirmed that, in spite of existing gaps, there are some fundamental common principles among the various Asian countries allowing diverse populations to

communicate and conduct business The sessions and presenters at the conference were as follows:

Session 1: Encounter of Civilization and Creation of New Values Thomas W Dunfee (The University of Pennsylvania)

"The Role of Ethics in International Business"

Haruo Naniwada (Kanto Gakuen University)

"Destination of the Modem Civilization: Encounter,

Struggle and Transformation of Civilizations"

Session 2: Modem Economic Civilization and Ethics of Economy

San-Guine You (Myong Ji University)

"The Spirit of the Times and Historical Evidence"

Iwan Jaya Azis (The University of Indonesia)

"The Choice of Policies and Strategies That Can Be Evaluated From

the Moral Aspects of Development: The Case of Indonesia" Takashi Kobayashi (Tokyo International University)

"The Present Time in World History and East Asian Cultural Zone"

Yukimasa Nagayasu (Waseda University)

"World Systems, Globalization, and Economic Values"

Session 3: The Internationalization of Business Enterprises and

Principles of Business Behavior Prasert Chittiwatanapong (Thammasat University)

"Japan's Foreign Relations: Some Ethical Problems"

Takeo Tsuchiya (Reitaku University)

"Social Responsibility of Business Corporations

in the Age of Global Economy"

Ah-Keng Kau (The National University of Singapore)

"Corporate Behavior in an Internationalized

Business Environment: Issues and Problems"

Han-Yu Chang (Tamkang University)

"Business Ethos and Management Culture: A Comparative

Historical Sketch for Modernization of the Asian Economy"

Session 4: Asian Thought: Tradition and Innovation

Il-Gon Kim (Pusan National University)

"Application of Confucian Ethics to Modern Economy:

A Way to Give Life to the Culture of Family Collectivism"

Lae Dilokvidyarat (Chulalongkorn University)

"The 'Community Culture' School of Thought in Thailand"

Yukiyoshi Mochizuki (The Institute of Moralogy)

"Ideals of Moralogical Management"

Mohd Nazari Ismail (The University of Malaya)

"Islamic Perspectives towards Economic Development and Business"

Asmad Muflih Saefuddin (Ibn Khaldun Islamic University)

"Islamic Economic Ethics"

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6

Session 5: The Globalization and Ethics of Economy

Jin Du (Liaoning University)

"Globalization and Economic Reform in Socialism:

The Case of the Chinese Economy"

Poh Ping Lee (The University of Malaya)

"The Globalization of the Asian-Pacific Area:

The View of a Southeast Asian Political Scientist"

Kiyoshi Takase (Takasaki City College of Economics)

"Modern World and Globalization:

The World in the Period of Structural Change"

Masataka Kosaka (Kyoto University)

"Globalization in the Perspective of State, Nation and Culture"

1991 Conference on The Ethics of Business in a Global Economy: Rethinking Corporate Morals

This conference focused upon the narrow but highly

professional field of business ethics This conference had three aims: 1) To find universal norms applicable and helpful in resolving business conflicts in the conduct of global business; 2) To find creative ways through which corporations can become more innovative and stronger,

in order to increase their longevity; and 3) To prepare for creating an Asian-Japan Business Ethics Network From this conference some tasks were made clear: how to develop ethical hypernorms at a cross-cultural level, and how to think about the dual approaches; the positive and optimum versus the negative and minimum This conference also had five sessions:

Session 1: What is Business Ethics?

Georges Enderle (The University of St Gallen)

"What is Business Ethics?"

Tadao Miyakawa (Hitotsubashi University)

"Social Responsibility of Business and Business Ethics"

Kei Takeuchi (The University of Tokyo)

"Business Ethics in Research and Development"

Session 2: Economic Systems and Business Ethics

Thomas W Dunfee (The University of Pennsylvania)

"Establishing Normative Ethical Standards

for Global Business Transactions"

Norman E Bowie (The University of Minnesota)

"International Business, a Universal Morality

and the Challenge of Nationalism"

Tsunehiko Yui (Meiji University)

"Value System, Ethics and Economic Development in Japan:

in Historical Perspective"

Yukichi Shitahodo (Kyoto University and the Institute of Moralogy)

"The Japanese Tradition of Economic Ethics"

Session 3: Business Ethics and Corporate Behavior

Brian Harvey (European Business Ethics Network)

"Business Ethics and Corporate Behavior in the United Kingdom"

Takatsugu Nato (Tokyo International University)

"On the Measurement and Comparisons of

Social Contribution Degree by Enterprise"

Moriaki Tsuchiya (The University of Tokyo)

"Business Ethics of the Global Company"

Shunji Kobayashi (Waseda University)

"Business Ethics and Corporate Strategy in Japan"

Session 4: Corporate Culture and Human Development in Business

Nasaru Yoshimori (International University of Japan)

"American Entrepreneurship Decline: A Perspective of Government Relationships" Nobuhisa Obu (Wako University)

Business-"A View on the Evaluation and Ethics of Enterprise Behavior:

A Step Toward the Establishment of Behavior Standards"

Patrick Mac1agan (The University of Hull)

"Some Thoughts on Individuals' Moral Development

in Business Organizations"

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8

Session 5: Business Ethics in a Global Economy

Henri-Claude de Bettignies (INSEAD)

"Ethics in International Business: A European Approach" Thomas Donaldson (Georgetown University)

"The Language of International Corporate Ethics"

Ken'ichi Odawara (Jochi University)

"Economic Ethics and the Globalization of World Economy" Norihiko Suzuki (International Christian University)

"Multinational Business Ethics: An Analytical View"

OVERVIEW OF THE BOOK

This book is divided into four parts Part I contains just two chapters: this one which introduces the basic themes and outlines the coverage of the book, and Chapter 2 which provides a framework of Japanese thinking about normative issues In this chapter, recurrent topics are noted and their treatment in various chapters is contrasted Common viewpoints are emphasized; significant divergences

commented upon One main purpose is to provide a brief overview of each of the chapters so that the reader may selectively choose what to read

The linchpin of the book is chapter 21 written by Iwao Taka (Visiting Scholar, The Wharton School, University of Pennsylvania; Assistant Professor, Reitaku University), which introduces the religious and social normative environment of Japanese business Taka describes the influence of Confucianism, Buddhism and traditional Japanese religions in leading to the modern Japanese view that every individual has a soul or spirit (numen) connected to the ultimate reality A principle of equality derives from this every person is equal in the sense of having an equal numen The concept of an individual numen extends to the phenomena of work and group activity Work

constitutes a means by which individuals connect to the ultimate reality

1This paper was written subsequent to the two conferences It is included because it provides an excellent framework for

understanding Japanese business morality and complements the approaches taken in this' book

9

and therefore has value in and of itself Groups have their own numen, seen as superior to that of individual members Obligations to comply with group norms are emphasized through statements of tatemae or

formal rule When members resist tatemae they do so through

assertions and gestures called honne or real motives

In the social dimension, Taka notes that the normative

environment may be envisioned as a set of four concentric circles

representing (1) family, (2) fellows or close associates, (3) the nation of Japan and (4) the world Different ethical rules govern in the four circles as follows: (1) filial piety, (2) long-term give-and-take relations, (3) a combination of open competition and long-term-give-and-take and (4) open competition Corporations fit into the same framework with vertical keirets'; being representative of the family circle and

horizontal keiretsu operating within the fellows circle The question of

access to keiretsu arrangements is a controversial issue in Japanese

global trade Taka emphasizes that understanding and adopting the ethical rules of long-term give-and-take is critical for acceptance into the fellows circles of Japanese corporations Managers tend to view the inner circles as operation bases supported by cooperative behavior while the outer bases are seen as battlegrounds of intense competition

Taka suggests that the logic of the religious normative

environment causes Japanese managers to be critical of the strict

division of labor that occurs in some U.S firms, and of the attitudes of some managers that certain jobs (e.g housekeeping, assembly line work) are inferior or, at the least, beneath them as individuals

Similarly, the logic of the social dimension is the basis for the recent criticism by Japanese of U.S executive compensation policies, hostile takeovers and the use of mass layoffs as a corporate strategy

Japanese firms also have shortcomings under Japanese

normative standards The discriminatory restrictions faced by female workers in Japan violates the principle that everyone has an equal numen Further, the emphasis on work results in heavy pressures to put in long hours and to comply with social conventions Those who do not go along face the possibility of severe criticism In extreme cases, this may lead to karoshi (death by work) Further, individual

2 Keiretsu are closely connected firms that work cooperatively

toward common goals Vertical Keiretsu are combinations of

suppliers (including service firms such as banks and insurance

companies), manufacturers and distributors; whereas, firms

associated in an horizontal keiretsu operate at the same level of the marketing structure

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10

employees are unlikely to question whether the decisions of the group are ethical

Part II: Business Ethics in a Global Economy

Part II focuses on general issues of morality in a global

economy and seeks criteria for making normative judgments about controversial practices in international trade A central, recurring question is how business practices are to be judged when they directly implicate two or more societies with contrasting ideas about what constitutes proper business behavior? Underlying the arguments

presented in this part is the ultimate issue of whether there is a

discoverable, universal morality relevant to global business transactions

In chapter 3, Thomas Dunfee (Kolodny Professor of Social Responsibility at The Wharton School, University of Pennsylvania) applies a contractarian analysis arguing that there is an unwritten, malleable social contract existing at the level of international trade which provides a central core of moral practices for international trade

He then extends the argument to identify a set of rule of thumb

principles which provide substance to the social contract for practicing global managers

In chapter 4, Yukimasa Nagayasu (formerly Professor, The School of Social Science, Waseda University; Chief, Economics

Division, Research Department, The Institute of Moralogy; Professor, Reitaku University) identifies key trends in the global political economy which have significance for business ethics at the international level Economic forces appear to be coming to dominate over politics; yet, at the same time there is increasing recognition of interdependence and the need for reciprocity in trade relations This, in turn, is changing the way in which business ethics is viewed, with increasing rejection of more narrow, short-term profit-making viewpoints Nagayasu

emphasizes benevolence as an important factor for relating to this emerging environment

In chapter 5, Norman Bowie (Elmer L Anderson Chairholder

in Corporate Responsibility, The University of Minnesota, a leading figure in business ethics in the United States) picks up on a major theme of the conferences and develops a rousing defense of a universal morality working from a Kantian perspective Bowie argues that so long as there is free and open competition at the global level, rational managers will be constrained to act honestly, eschew bribery and

become trustworthy In addition, these forces will ultimately cause a decrease in discrimination based on taste and/or misinformation

Supplementing his argument with support from Adam Smith, Bowie optimistically sees free and open global competition as a force for world peace, causing war to become in Kant's terms, too destructive, expensive and economically irrational Bowie ultimately tempers his optimism, however, by worrying that nationalistic influences on

economic competition may be destructive, using examples from the trade war between the United States and Japan and the changing

reactions of United States citizens toward Japanese investment in the United States

Thomas Donaldson (John Connelly Professor of Business

Ethics, Georgetown University and the leading proponent of a

contractarian approach to business ethics) focuses in chapter 6 on a different dimension of the universalism/relativism debate: the

implications of the great diversity of moral claims and language across cultures Donaldson identifies six different languages of ethics: (1) virtue and vice, (2) self perfection through self-control, (3)

maximization of human welfare, (4) avoidance of human harm, (5) rights/duties and (6) social contract Languages which identify

perfectionistic as opposed to minimalistic standards present great

difficulty when attempts are made to relate them to the decisions of global business firms Similarly, those whose focus is psycho-centered

11

are awkward to apply to corporations which have, at most, a decidedly non-human psychology Donaldson concludes that languages based on rights/duties, avoidance of harm and social contracts are more suited to understanding international corporate ethics than ones based in virtue, self control and maximization of human happiness

Chapter 7, written by Georges Enderle (Arthur and Mary

O'Neil Professor of International Business Ethics at the University of Notre Dame, Indiana) closes Part II Enderle comments on the

emerging academic field of applied business ethics He discusses the relationship between ethics and economics and notes that the new field must focus on the process of integrating ethics into business decision-making Enderle advocates a "New Practice" in which there is

recognition of the true overlapping nature of economics and ethics, and also of pluralism Enderle suggests that solutions to the difficult

problems of business ethics can be found in the domain of overlapping consensus

Part III: Business, Economy and Ethics in Japan

Part III involves a more specific focus on economics and ethics

in Japan The four chapters of Part III provide background and

12

examples for the analysis developed by Taka in chapter 2

The difficulties with using certain moral languages as noted by Donaldson are dramatized in chapter 8 by the late Haruo Naniwada (Honorary President, Kanto Gakuen University) Naniwada argues that viable economic systems must emphasize both freedom and justice, and therefore that the logic of the "real economy" is based on a trilogy of liberty, social equality and true community In reaching this conclusion, Naniwada rejects rationalism as a speculative logic whose major

shortcoming is that it arrogantly assumes that the world exists as its theory predicts But in offering a solution to this problem, Naniwada encounters a problem of language No existing concepts or terminology adequately capture the point he wishes to make His solution is to coin his own term "allelonomy" Allelonomy describes a principle of mutual dependence, identifying that the very existence of one thing is

dependent upon the existence of another

Ken'ichi Odawara (Professor, Faculty of Economics, Sophia University, Lecturer of International Relations, University of Tokyo) focuses on differing perspectives concerning labor and human resource management that exist in Japan and the West In chapter 9,Odawara contrasts the approaches taken by U.S and Japanese firms in dealing with periods of losses or reduced profitability These differing

approaches are seen as influencing the basic nature of labor relations in the two countries Odawara concludes that the Japanese system is ethically superior in this dimension

The work of Chikuro Hiroike, founder of the Institutes of Moralogy and author of A Treatise on Moral Science published in four

volumes in 1928, is discussed in chapter 10 by Yukiyoshi Mochizuki (Director, Research Department, The Institute of Moralogy; Professor

of Foreign Languages, Reitaku University) As a means of bridging East and West and enhancing the chances of world peace, Chikuro Hiroike sought a Supreme Morality through study of the great sages, including Buddha, Christ, Confucius, Socrates and works of Japanese mythology Mochizuki describes Hiroike's creation of moralogy, a scientific study of morals based upon realizing the happiness of

individuals and the cultivation of human character Stress is placed upon the unification of morality and economy, so that moralogical management emphasizes character capital, the recognition and

observance of duty "Character comes first, not money" is a key theme for companies managed in a manner compatible with moralogy An important obligation is the development of the character of employees,

a mission seen as more important than short-term profitability Each employee should unify knowledge and virtue and constantly seek to advance their knowledge and ability These ideals are then extended

13

into a stakeholder concept of a duty to operate firms in a manner

consistent with a principle of triadic justice and equality In conducting business, the businessperson should always seek to insure that benefits are appropriately spread among self, the other party to the transaction and third parties Diversity is to be tolerated, allowing for

co-prosperity Ultimately, the prosperity of a corporation depends upon the morality of its managers Thus, the universal ideals are

reduced to the everyday actions of business managers and firms

Part III closes with Chapter 11, written by Shunji Kobayashi (Professor, School of Commerce, Waseda University) Kobayashi takes

a practical, modern approach in emphasizing that business firms must take care to operate within the range of social acceptance He sees the Japanese social consciousness as based upon the community and the relationships among individuals Kobayashi discusses the current efforts toward developing a system of corporate philanthropy in Japan as actions consistent with these themes

Part IV: Historical Development of Market Morality in Japan

Part IV combines three chapters which together survey the historical development of market morality in Japan The work and conclusions of Chikuro Hiroike are further described in chapter 12, by Yukichi Shitahodo (Professor Emeritus, Kyoto University; Advisor to the Institute of Moralogy), who places the writings into their historical context Shitahodo discusses the economic ethics of Sontoku Ninomiya which stressed the merger of self-interest and of community

responsibility Subsequently, Eiichi Shibusawa, influenced by the

Analects of Confucius, derived an approach to economic ethics based upon a parallel concept of justice and profit

In chapter 13, Han-Yu Chang (Professor of Business

Administration, Tamkang University; Professor Emeritus, Taiwan

University) takes a historical approach to the ideal of occupation or work He traces attitudes toward work in both medieval Europe and in Japan In both societies, attitudes evolved toward a more positive view

of work as a calling and as activity essential to social order Chang traces changes in viewpoints in Japan through the writings of Seisan Suzuki, Baigan Ishida and Eiichi Shibusawa The influences of Buddhist practice, Confucian concepts and the samurai spirit produced an

orientation toward work which recognized the unity of morality and economy ,a sense of social responsibility and an emphasis on the

importance of education and learning Out of these perspectives

emerged the view of a company as a life community

14

Tsunehiko Yui (Professor, Department of Business

Administration, Meiji University) is the author of chapter 14 Yui identifies and contrasts the values and ethics of merchants and business leaders in three major periods of Japanese development: the feudal Tokugawa period (1750-1867), the Meiji Restoration (1868-1912), and the post World War II period (1945-1980) Yui concludes that through all of three periods dedication to duty, group cohesion and harmony remained central, even as Japan evolved in response to changing times and circumstances Even today, as concern about individual rights and stakeholder interests increases, group solidarity remains paramount in Japan

THE ROLE OF ETHICS IN A RAPIDLY CHANGING GLOBAL ECONOMY

A dominant theme of this book is that powerful forces are at work bringing about significant changes in the ways in which global corporations, nation states and regional trading blocs inter- relate Pundits and prognosticators notwithstanding, the overall trend of these changes remains ambiguous in important respects Clashing political forces pull toward fragmentation in Eastern Europe and the former Soviet Union; while the need for economic coordination brings other nations and groups closer together in ever more administratively

powerful regional trading blocs Increasing economic interdependence is accompanied by increasing calls for political autonomy and

independence The world environment is stressed by the competing forces of integration and fragmentation

What are the moral implications of global economic

interdependence? In a world in which the performance of the Japanese stock market and the decisions of the German government concerning interest rates may have as great an impact on the United States as its own domestic economic policies, in which decisions about plant safety

or environmental protection may literally affect millions around the globe; it is vital that business leaders and managers think seriously about the moral implications of global business activities Decisions made by business firms can have impacts far beyond national

boundaries Corruption, environmental degradation and product and workplace hazards can all be added to the list of exportable goods and services in international trade Private firms have the capacity to sell high technology or weapons to unstable despots and thereby have the power to influence dramatically prospects for world peace

15 The enduring, venerable questions underlying the morality of such phenomena are fully familiar to philosophers and political

theorists What, if any, are the limits of respect that should be given to cultural differences? Is there a universal morality? If there is not, then how can cultural conflicts be resolved If there is a universal morality,

is it narrow or broad in its scope? How can it be identified,

particularly in the context of specific applications? How can it be expressed, given the broad diversity of moral languages?

In this book these important questions are discussed in the context of global business transactions from the perspective of Japanese and Asian ethics These discussions are aimed at students of business and economics as well as students of philosophy and politics The focus

is often on business firms, their employees, suppliers and competitors, with considerable emphasis on transactions Implications for business strategy and for internal corporate policy are noted

The focus on business transactions requires attention to many of the long standing questions in business ethics What is the proper relationship between morality and economic life? Are they mutually exclusive spheres best kept separate and likely to explode into

dissonance if their territorial integrity is violated? Or instead, is each incomplete without the other, requiring creative melding in order to form a felicitous union? What is the role of values in global business? Are there generally recognized international standards of business ethics, or does doing business ethically at the global plane boil down to

a capacity to select which local standards of morality are applicable to a transaction? Is "harmony" a realistic goal in international business

transactions? What does harmony mean in such a context? How can it

be achieved?

As is true of all firms, large or small, there are always important questions pertaining to the relationship between the values of individual employees and the firms that employ them Morally, should firms have

an obligation to consider the full set of employee needs and interests that make up the total person? Should, for example, firms worry about education for employees, or off-the-job health practices? Is there any special obligation that arises from the fact that work is central to the lives of most people, its importance transcending putting bread on the table and extending to the primary way in which people relate to

broader society and even to the ultimate reality? Or, contrariwise, do employees have a private domain that should be respected as separate from their job and considered off limits to prying employers? Do employers act immorally when they concern themselves with the whole person and end up infringing upon the private space of their

employees? These and other questions are dealt with from a variety of

TOWARD A UNIVERSAL MORALITY

Scholars have engaged in an enduring quest for a statement of universal morality that could be used to judge right and wrong across all human cultures The view of whether such a quest is realistic has varied during the different phases of human intellectual history In the twentieth century, the horrors of two world wars, the emergence of brutal totalitarianism and the concurrent development of terrifying weapons of destruction have generated skepticism about the potential for identifying universal standards while at the same time it dramatized the need for over arching, unifying principles

The search for a unifying morality that could serve as a

foundation for world peace was a major quest of Chikuro Hiroike He studied the work of the great sages (primarily Buddha, Christ,

Confucius and Socrates) and concluded that all believed in the

existence of God, that they all subordinated their personal interests to fundamental questions of enlightenment and salvation, and, finally, that they all emphasized peace and placed great importance on knowledge and virtue From this, Hiroike derived five principles of Supreme Morality Although the focus of Supreme Morality is on the individual, behavioral principles applicable to global trade can be extrapolated from the five principles If all managers engaging in international business transactions were to act consistently with the principles of Supreme Morality, then great harmony would result

The first principle of Supreme Morality is one of

self-renunciation, which means to limit one's personal demands to those things needed to live and develop normally It is a rejection of

selfishness where one takes for oneself on the basis of greed or

arrogance The second principle involves realization of benevolence This is a recognition of the beneficence of God, however one conceives

of God It involves a true appreciation of the benevolence of God, not just a perfunctory belief The worship of profits, money or material objects as the primary or most important goods violates this principle

The third principle of Supreme Morality is the recognition of the dominance of duty over personal rights Duties should be

performed willingly They include such things as doing the best job possible, working to increase the happiness of others and observing

custom and public morality Although a seeming contradiction,

emphasis on duty over rights is an important element in insuring that rights of others are respected; for after all, duties and rights are two sides of the same coin

17

The fourth principle of Supreme Morality is respect for

benefactors, those who have contributed to the development of society The list of benefactors incudes family ancestors, national and spiritual leaders, founders of corporations, teachers, friends and so on The respect that is shown in this case is in the nature of moral debt This principle can help individuals overcome the common tendency to show more gratitude for small personal favors than for the fundamental and basic contributions that allow one to experience a high quality of life The final, fifth, principle of Supreme Morality is one of enlightenment and salvation Enlightenment means to assist others in understanding the universal truths, to appeal to the conscience of others In the

context of corporate management, this means that the manager should

be concerned about the morality of employees, suppliers and customers

The universal nature of Supreme Morality comes from its

source in the approaches taken by the great sages who represent

different major cultures and religions The emphasis on respect for others, and on caring for others can be translated into more specific standards of behavior; but Supreme Morality is not itself reducible to a definitive set of specific behavioral commands

Bowie, in contrast, argues that the dynamics of a freely

competitive marketplace will force managers to behave in a Kantian manner The competitive marketplace will mitigate disrespect,

dishonesty and irrational discrimination Thus, free competition can be

a source of universal morality In order to bring Bowie's vision, the key task would be to remove all constraints on a supportive environment for free competition Moralogical managers should be successful in Bowie's world On the other hand, Bowie's assumptions of aggressive profit-making behavior on the part of global managers may be

somewhat inconsistent with moralogy's concept of the ideal manager

a person who exercises considerable self-restraint and who puts

non-materialistic values first

Dunfee takes a very different approach and uses social contract theory as a basis for legitimizing a core of universal ethical standards for global business transactions Dunfee argues, drawing from research done jointly with Thomas Donaldson, that rational humans throughout the world are willing to delegate to local communities substantial areas

of moral free space in which each group may generate its own binding moral rules Communities enjoying moral free space include

corporations, business associations, nations, social groups and so on

18

Thus, Japan and Japanese corporations have moral free space in which

to establish their own moral rules; and, in most matters, they may properly adopt and follow different moral standards than do, for

example, Swedish, Nigerian or Canadian corporations Norms may be said to exist within a community when the majority of the community believes in the correctness of the norm and the majority also behaves consistently with the norm This belief/behavior test can be used to identify norms that are authentic to local communities When the belieflbehavior test is satisfied, the local norm may qualify to be considered ethically obligatory

However, the grant of moral free space to local communities is not unlimited Norms of the world community reflected consistently in the religious, political and philosophical thought of local communities are one form of limit on the moral free space of global corporations and individual nation states Because these norms represent the

standards by which all other norms are judged, they are aptly described

as "hypernorms." It is here that Dunfee's approach intersects with that

of moralogy, because the technique of looking to the convergence of the views of the great sages as a means of defining Supreme Morality may also be used to define hypernorms

In seeking sources of specific guidance, Dunfee looks to a social contract among international business transactors as a key moral

influence on global commerce The terms of this social contract for global business can be interpreted for business managers through the device of rule of thumb principles Such principles can provide general guidance and, when considered, at least insure that business people have given some thought to the moral dimensions of their decisions Four rule of thumb principles are offered as relatively

non-controversial, in part because they are essential to business

efficiency: (1) honor confidentiality, (2) avoid actual conflicts of

interest, (3) act in good faith and (4) exercise due care Two additional rule of thumb principles are offered that require considerable

interpretation and judgment: (5) respect the liberty and rights of others and (6) respect human well-being The final rule of thumb principle, (7) willingly comply with the law, serves as a general guidepost,

although its application requires the resolution of difficult issues of law and morality and respect for cultural differences

19 BRINGING ETIllCS INTO GLOBAL BUSINESS TRANSACTIONS The Need to Distinguish Levels of Analysis and Decision-Making

Many of the chapter authors stress the need to focus on

different levels of decision-making in thinking about global business ethics Nagayasu stresses that in understanding key trends in the global political-economy, one must consider the actions and interests of

individuals, nations and the global society Enderle notes the

importance of distinguishing among individuals, firms and national economies in attempting to understand the relationship between

economics and ethics Donaldson emphasizes the distinction between business firms and individuals in his analysis of moral language

The nature of the underlying economic systems in which global trade is based will doubtlessly affect the morality of global business transactions Naniwada and Shitahodo both address the impact of economic systems on their participants Restrictive communist

economies develop attitudes of irresponsibility, whereas open capitalist systems breed excessive self-interest coupled with a rejection of

community values and interests Arguing that freedom and justice require each other, Naniwada argues for a mixed economic system which contains the best of the problematic extremes In a similar vein, Enderle argues for the recognition of the true overlapping nature of economics and ethics, a pluralistic solution that can only be found in a domain of overlapping consensus

Specific Proposals for Bringing Ethics into Global Business

The major contributions of the chapters published in this book are in the varied proposals, derived from differing cultural perspectives, concerning how ethics can be emphasized in global business

transactions Although the specifics of the proposals differ greatly, they share some common themes A recurring area of emphasis is on the nature of work the manner in which work is viewed by both the

employee and the manager Many authors stress the interconnection between individual work effort and greater societal interests, and the role of work in providing individual self-fulfillment For managers, there is emphasis on operating firms on the basis of a long-term

perspective, within the framework of social acceptance and with express consideration of moral dimensions Firms are to be run so that

employees may develop themselves within the context of their work

20

On a more specific level, Nagayasu advocates that global firms operate under a "New Golden Rule" in which they proactively help others At the level of the worker, Nagayasu's approach might be thought of as a global, a religious version of the Protestant Ethic,

viewing work as a way to salvation and happiness independent of particularist dogma

Odawara advocates the adoption of the Japanese perspective of employee relations in global firms He stresses that ethics in business behavior will be accepted only when it is consistent with economic logic

He notes that "by securing workers' jobs, Japanese companies can fulfill their social responsibilities." Job security leads to wider societal

benefits, avoiding the welfare state's problem of creating a class of citizens who look to the government to provide them benefits

Odawara concludes that the idea that you can get money when you do not work is extremely immoral and inhumane He argues that

adopting attitudes such as these may help mitigate the friction naturally arising from globalization He also sees a need to limit the ecoIiomic and political independence of each nation Otherwise, there will be tendencies toward protectionism and other problematic strategies in response to perceived inequalities in the distribution of economic

benefits

Shitahodo places the work of Hiroike within the Japanese

tradition of economic ethics while Mochizuki discusses its application to the management of business firms Mochizuki emphasizes the practical application of the ideals of moralogy within business firms Key

principles of application are practice and change Methods of thinking and behaviors must necessarily be changed Managers must

fundamentally alter their basic way of thinking to learn to esteem

humanity and not mere material benefit Moral life and material life should be seen as opposite sides of the same coin Morality and wealth generation are not dimensions of life inherently at war with each other, but rather both are natural parts of the composite being Both are necessary for completeness and they intimately influence each other; this is symbiosis carried to the level of indispensability

Practice by mind involves using the "good mind" as often as possible The manager following these principles will seek to improve the character of all people involved with the organization There will be emphasis on improving the quality of the enterprise This is carried out

by the managers themselves, who will seek to avoid restrictive

governmental interference and outside financial interventions

Managers of successful companies open their eyes to the

broader world This is important because firms are dependent upon the support and cooperation of the broader societies in which they

21 operate As business becomes more global it must respond to the interests of global society As time go~s along, the global community will become more and more the focal point for key ethical norms and a source of the standards which determines a firms' reputation for ethical behavior Mochizuki ends by emphasizing that the prosperity of a business firm will ultimately depend upon the morality of its managers

From an European perspective, Enderle suggests a "New

Practice" as a solution to the reluctance of business people to use the formal terminology of ethics, and as a response to the recurring

instances of ethical failures in global business Enderle emphasizes that

in order for the academic discipline of business ethics to fully develop,

it must distinguish among personal, collective and general values All are relevant, but the context and role of each may vary among decision contexts In order to provide a legitimate moral framework for

business ethics, a model of cooperation between ethics and economics must be developed This model must be realistic, and it must avoid idealistic, maximal standards on one hand, and a purely instrumentalist view of economics on the other hand

The discipline must also be oriented directly toward business decision-making To achieve this, the focus must be on problem

solving In the global context, the fact of pluralism must be faced, where perhaps the only solution will be in the area of an overlapping consensus

Bowie argues that free and open competition at the global level will achieve critical elements of a universal market morality He argues that this is so because managers faced with on-the-merits competition will find that honesty and trust pays, and that misinformed

discrimination does not pay Managers struggling to be successful global competitors will be forced to be Kantian in their thinking Bowie extends this analysis by identifying the following propositions:

1 As international business increases, employee honesty will tend to rise;

2 As international business increases, bribery will decrease;

3 Organizations with structures that are trust supporting will begin to drive out those that are trust denying;

4 As international business increases, discrimination based on sex, religion or national origin will decrease when the discrimination is based on tastes or misinformation

22

Bowie then goes on to apply his analysis in the context of the controversial practice of keiretsu Bowie is relatively sanguine about the

basic practice of keiretsu, so long as the important condition is met that

the keiretsu organization be open to all qualified parties Global

competition featuring internationalized, and therefore open, keiretsu

organizations and appropriate recognition of stakeholders regardless of nationality is seen as both morally and economically sensible

Although the various authors approach the issue of global economic morality in quite different ways, there are some important commonalties Most, if not all, are optimistic about achieving

significant global harmony This is encouraging and surely cannot be solely attributed to the fact that optimistic people may be particularly drawn to dealing with issues on this grandiose a level A dominating premise in the solutions offered is "otherness." All stress that moral global managers should evaluate the impact of their actions on broader communities This in turn leads to an emphasis on long-term effects and, concurrently, on the de-emphasis of financial considerations as the core means of judging business decisions

therefore, has value in and of itself Groups are also seen as having their own numen, which may be seen as superior to the individual members The following of group norms is emphasized through

tatemae or formal rules When members refuse tatemae, they do so through assertions and gestures called honne or real motive

In the social dimension, the normative environment may be envisioned as a set of our concentric circles representing family, fellows

or close associates, the nation of Japan and the world Different ethical rules govern in the respective circles: filial piety, long-term give-and-take relations, a combination of competition and long-term give-and-take and open competition Corporations fit into the same framework with vertical keiretsu fitting into the family circle, and horizontal keiretsu

typically into the fellows circle Understanding and adopting the ethical rules of "long-term give-and-take" is critical to be accepted into the fellows circle of corporations Corporations tend to view the inner

23

T.w Dunfee and Y Nagayasu (eds.), Business Ethics: Japan and the Global Economy, 23-59

© 1993 Kluwer Academic Publishers

The logic of the religious dimension causes Japanese managers

to be critical of the strict division of labor that occurs in some U S firms, and of the attitudes of some managers that some jobs (e.g housekeeping) are beneath them Similarly, the logic of the social dimension is one reason why the Japanese have been critical of

executive compensation policies, hostile takeovers and the use of mass layoffs as corporate strategy in the U S

Japanese firms have short-comings when viewed in terms of Japanese ethical standards The limits on female workers violates the principle that everyone has an equal numen Further, the emphasis on work as a means of connection to the universe has resulted in heavy pressures on employees to work long hours and go along with social conventions, with the possibility of severe criticism for those who do not comply In extreme cases this may lead to karoshi (death by work) Further, individual employees are unlikely to question on ethical

grounds the decisions of the group

The ethics of the social dimension is a contributing factor to the difficulty that foreign firms have entering the Japanese market To respond to this, Japanese firms should help foreign firms understand how to operate under the concept of long-term give-and-take, and they should provide all firms with an equal opportunity to join fellow circles

BUSINESS ETIllCS IN JAPAN

What are considered to be ethical issues by the Japanese

business community? The easiest way to answer this question is to look

at the annual reports of major Japanese business associations Although there are several business associations in Japan, I will rely on the recent annual report of Keizai Doyukai (Japan Association of Corporate

Executives), partly because this association is seen as being in the forefront of business ethics in Japan, and partly because the other influential business associations such as Keidanren (Japan Federation of Economic Organizations) are developing similar ideas about business

25

ethics I

In the 1989 report of Doyukai, chairman Takashi Ishihara

placed emphasis on "fairness," saying "fairness is an important standard

in solving international conflicts in which Japan gets involved Japan, because of its economic power, is required to be "fair" with increasing severity On account of this, both corporations and their executives have to consider more seriously what is fair and unfair in a business context ,,2

Based on the concept of fairness, Ishihara pointed out two types

of responsibilities that corporations and corporate executives must fulfill The first type includes basic responsibilities such as fulfilling duties to customers, employees and stockholders, contributing to the community and making the corporations useful and meaningful in society 3

The second type consists of pressing responsibilities that

corporations have to recognize As for this type, he identified the

following five responsibilities

First, for the purpose of developing a free society, we

should behave in an orderly manner and in a fair way,

taking into consideration not only legal but also moral

aspects of our behavior Second, we have to clarify

corporate philosophies and purposes, formulate norms of

business practices with as little delay as possible, and

follow them faithfully Third, it is imperative for us to

moderate the aggressiveness that has been thought of as

usual in business activities Corporations, especially big

IThe present Chairman of Doyukai is Takashi Ishihara (Chairman

of Nissan Motor) Doyukai is composed of about 1500 executives and

a Subcommittee on "Corporate Citizenship" was established in April,

1990 The present Chairman of Keidanren is Gaishi Hiraiwa

(Chairman of Tokyo Electric Power) Keidanren is composed of about

940 corporate executives and it established a "Committee on

Corporate Philanthropy" in February, 1991 The other business

associations in Japan have not yet created specialized committees of business ethics

2Keizai Doyukai (1990): Heisei Gannendo Teigen Ikensho Shu (Annual Report of 1989: Proposals and Opinions), Tokyo, 91

3Ibid., 92

26

ones, should absolutely refrain from doing anything

which is against good sense and common interests

Fourth, we should contribute to a formation of a better

society as its members Corporations are obliged to

contribute positively to the better welfare and cultural

development of society This is now regarded as a

proper responsibility of corporations Fifth, we must

consider more seriously our ways of business from the

international point of view, as long as we do business in

the international arena For example, Japanese

transnational corporations should understand real needs

of host countries, and take carefully-thought-out

measures for social contribution to them We are

strongly expected to show the credos which the

international society can understand and support, and it

is obligatory for us to create a new corporate philosophy

which declares the international contribution in a

clear-cut manner 4

With these remarks regarding "fairness" and "social

responsibilities" (especially the emphasis placed on "fairness") in mind, one might conclude that ethical standards of the Japanese business community are almost the same as those of Western countries Before jumping to this conclusion, however, I shall consider traditional ethical standards of the Japanese business community From the viewpoint of these standards, I intend to discuss how the Japanese business

community conceives American business practices, and finally to show what ethical issues face the Japanese community

TWO NORMATIVE ENVIRONMENTS RELIGIOUS DIMENSION

In order to evaluate the traditional ethical standards of the Japanese business community, it is necessary to describe the Japanese cultural context or background When it comes to cultural or ethical background, we can classify Japanese conscious and unconscious beliefs into a "religious dimension" and a "social dimension," in that Japanese culture cannot be understood well in terms of only one of the two dimensions While the former is closely combined with a metaphysical concept or an idea of human salvation, the latter is based on how the

4Ibid., 92-93

Japanese observe or conceive their social environment Stated

otherwise, while the former is "ideal-oriented," the latter is

"real-oriented "

27

First, the religious dimension: it supplies a variety of concrete norms of behavior to the Japanese in relation to the ultimate reality As

a consequence, I shall call this dimension the "normative environment."

By this I mean the environment in which most events and things

acquire their own meanings pertaining to something beyond the

tangible or secular world.5 Following this definition, there are mainly two influential normative environments in Japan: the "transcendental normative environment" and the "group normative environment ,,6

Transcendental Normative Environment

One of the famous Japanese didactic poems says, "Although there are many paths at the foot of a mountain, they all lead us in the direction of the same moon seen at the top of the mountain." This poem gives us an ontological equivalent of "variety equals one." To put

it in another way, though there are innumerable phenomena in this tangible world, each individual phenomenon has its own "numen" (soul, spirit, raison d'etre, or spiritual energy), and its numen is ultimately connected with the unique numen of the universe In Japan, this

ultimate reality is often called "natural life force," "great life force of the universe," "michi" (path of righteousness), "ri"(justice), or "ho" (dharma, laws).7

"Transcendentalism" is the philosophy that every phenomenon is

an expression of the great life force and is ultimately connected with the numen of the universe It follows that the environment where

5The original idea of "normative environment" is the "semantic cosmos" proposed by J Kyogoku Kyogoku, J (1983): Nihon no Seiji (Politics of Japan), Tokyo: Tokyo University Press

6Kyogoku, J., ibid., 139-188 Abe, H., Shindo, M and Kawato, S.(1990): Gendai Nihon no Seiji (Politics of Modern Japan), Tokyo: Tokyo University Press, 235-239

7Kyogoku, J., (ibid., 137-138.) The philosophy of the great life force is explained in detail in Tsushima, M et al., (1979): "Shinshukyo Niokeru Seimeishugiteki Kyusaikan" (Life-oriented Salvation in the

Japanese New Religions), Shiso (Thoughts), 92-115

28

various concrete norms come to exist may be called the "transcendental normative environment." What is more, the set of these norms is simply called "transcendental logic "S

In this transcendental environment, everyone has an equal personal numen This idea has been philosophically supported or

strengthened by Confucianism and Buddhism That is to say, in the case

of neo-Confucianism,9 people are assumed to have a microcosm within themselves, and are considered condensed expressions of the universe (macrocosm) TheiriImer universe is expected to he able to connect with the outer universe.lo

In the case of Buddhism, every living creature is said to have an equal Buddhahood, a Buddhahood which is very similar to the'idea of numen and microcosm Buddhism has long taught, "although there are differences among living creatures, there is no difference among human beings What makes human beings different is only their name "ll

SThe closest translation of the Japanese term is "uni-variety

normative environment." The concept, a difficult one even for the Japanese, does not translate easily into English I am using the term

"transcendental" in its sense of placing emphasis on "the primacy of the spiritual and intuitive over the material and empirical" from the definition of "transcendentalism" in Webster III New International Dictionary Professor Thomas W Dunfee kindly suggested to me the term "transcendental normative environment."

9Taoism criticized Confucianism, saying that Confucianism had constructed an artificial society Por Taoism, formulating manners and requiring people to learn them meant making an artificial

society Taoism regarded this society as immoral Buddhism also exerted its influence on ordinary people, establishing their own

cosmology and metaphysics which Confucianism lacked Confucians, therefore, aiming at strengthening their influence on common people, developed and elaborated its cosmology and metaphysics in 11th century It was "neo-Confucianism," or the doctrines of Chu-tzu

(1130-1200), that underwent these philosophical changes Miura, K.,

Shushi (1979): Tokyo: Kodansha, 35-263 Kaji, N (1990): Jukyo towa Nanika (What is Confucianism?), Tokyo: Chuokoronsha, 170-217 lOMiura, K., op cit., 28

llPujita, K (1970): Jinsei to Bukkyo (Life and Buddhism), Tokyo: Kosei Shuppansha, 54

29

In addition, however, under the transcendental normative

environment, not only individuals but also jobs, positions, organizations, rituals and other events and things incorporate their own Needless to say, these numina are also expected to be associated with the numen of the universe

Deities of Shintoism, Buddhism and the Japanese new religions, which have long been considered objects of worship, are often called the "great life force of the universe," or regarded as expressions of that force In this respect, the life force can be sacred and religious On the other hand, however, many Japanese people have unconsciously

accepted this way of thinking without belonging to any specific religious sect In this case, it is rather secular, non-religious, and atheistic

Whether it is holy or secular, the significant feature of Japan is that this transcendental normative environment has been influential and has been shared by Japanese peopleY

Meaning of Work in the Transcendental Environment

In as much as Japanese people live in such a normative

environment, the meaning of work for them becomes unique That is

to say, work is understood to be a self-expression of the great life force Work is believed to have its own numen so that work is one of the ways

to reach something beyond the secular world or the ultimate reality Accordingly, Japanese people unconsciously and sometimes consciously try to unify themselves with the great life force by concentrating on their own work 13

This propensity can be found vividly in the Japanese tendency

to view seemingly-trivial activities such as arranging flowers, making tea, practicing martial arts or studying calligraphy as ideal ways to complete their personality (or to go beyond the tangible world)

Becoming an expert in a field is likely to be thought of as reaching the

12Kyogoku, J., op cit., 164

13S Yamamoto found a prototype of the spirit of Japanese

capitalism in the Buddhism of Seisan Suzuki (1579-1620) Yet, the logic is almost the same That is, all people, whether peasants,

merchants, priests or warriors, can enter Nirvana if they concentrate

on their own calling with sincerity and faithfulness Yamamoto, S

(1979): Nihon Shihonshugi no Seishin (Spirit of Japanese Capitalism),

Tokyo: Kobunsha, 118-141