The journey from unrealistic to realistic optimism: Ancient Confucian wisdom in modern business practice

Abstract

The notion of “realistic optimism” seems paradoxical, intertwining the contradictory elements of objective judgment and a positive outlook. Extant research often falls short in analyzing this dilemma and in capturing the cultural nuances. Given Confucianism’s endeavors to reconcile realism and optimism, this paper explores the cultivation of realistic optimism in Confucian classics. Further, an account of a contemporary Confucian merchant is provided to illustrate the enduring relevance of these ancient principles in the contemporary business world. This paper highlights two Confucian approaches that facilitate the development of realistic optimism. Firstly, from a preventive stance, “desire modesty” enhances realism by lowering cognitive dissonance and fosters optimism by reducing external motivation that often hinders creative solutions. Secondly, from a promotive perspective, “discernment clarity” promotes realism by cultivating a strong need for cognition; “meaningful adversity” mitigates pessimistic feelings by reframing hardships; and “sincere creativity” bolsters optimism by inspiring innovative solutions. Overall, this paper underscores the crucial role of culture in shaping realistic optimism by illuminating the profound influence of Confucian teachings in transforming this seeming paradox into a lived reality.