A Confucian approach to well‐being and social capital development

Purpose – This paper aims to discuss and demonstrate the synergies between the western concept of corporate social responsibility that is emerging from a background of individualism and market competition, and the traditional values of Chinese Confucianism, as applied to managerial practice. Design/methodology/approach – The paper is primarily theoretical in perspective. It also draws upon interview data derived from an in depth study of a large state‐owned corporate group in China in order to demonstrate the model that is known as modern Confucian entrepreneurship. Findings – Adherence to Confucian values was demonstrated by both manager and employee interviewees. However, Chinese managers also need to reform some practices as they move into the international market place. As western managers, at the same time, increasingly seek to increase their social capital it is clear that Chinese and western managers can learn from each other. Research limitations/implications – The examples drawn upon in this paper come from a state‐owned corporation. Indications are that smaller, privately owned companies in China are more aggressively adopting market models built upon competitive individualism. Further research is needed to develop comparisons. Practical implications – The paper suggests a hybrid model of business management that combines aspects of both western and Confucian‐based management styles that are proven to be successful in building social capital. It also suggests that fundamental change needs to be effected through business school teaching. Social implications – The paper urges a more collective view of management that is built upon trust and focuses on employee and social wellbeing. Indications are that increased wellbeing generates more cohesive, productive and happier societies. Originality/value – The introduction of interview data provides unique insight to Confucian values in practice in a modern Chinese company.