Balancing Profit and Morality: Confucian Insights into Financial Management and Corporate Governance

Abstract

This study explores the integration of Confucian principles in modern financial management and corporate governance, offering a nuanced perspective on how ancient philosophical wisdom can inform contemporary business practices. By analyzing seminal Confucian texts and reviewing current literature, this research illuminates the alignment between Confucian ethics and ethical business conduct, emphasizing a balance between financial success and societal welfare. The findings reveal that Confucianism, with its core values of Ren (compassion), Yi (righteousness), and Li (propriety), advocates for a holistic approach to business. This approach prioritizes long-term societal benefits and ethical decision-making over immediate financial gains. The study contrasts and compares Confucian perspectives with modern financial theories, highlighting the relevance and applicability of Confucian ethics in today's business world. In financial management, Confucian principles encourage prudent investment strategies and respectful stakeholder relationships, aligning with aspects of portfolio theory and wealth maximization but with an added ethical dimension. In corporate governance, Confucianism promotes leadership based on moral integrity, advocating for a governance model that values trust, mutual respect, and social responsibility. This research contributes to the understanding of how traditional philosophical systems like Confucianism can complement and enrich modern business practices.