Business ethics, Eastern style
Business and Society Review
No.81
Spring 1992
pp.70-72
COPYRIGHT 1992 Management Reports Inc.
How Kao Corporation scored a knockout.
TORMENTED BY DOUBT and uncertainty, I needed guidance. After the
unexpected death of my predecessor, I found myself appointed as the
new president of the Kao Corporation. The suddenness of events left
me unprepared to manage a corporation of this size.
For guidance, I searched through books of philosophy and practiced
Zen meditation. After four years of this quest, I still had no real
understanding of how a corporation should function or what my own
role would be in the corporate scheme. Fortuitously, I met Shinso
Hanayama, a noted scholar of Buddhist philosophy, who had done
seminal research showing that the Commentary on the Hokke Sutra was
written by Prince Shotoku.
PRINCELY PRINCIPLES
Prince Shotoku, who introduced Buddhism to Japan, had a simplistic
view of mankind that I found refreshing and similar to my personal
feelings. The fundamental precept of his teachings expound that all
human beings are created unconditionally equal. He believed that
there was one, and only one, universal truth to which life in all of
its forms must submit.
The Prince, in short, had an absolutely egalitarian view of mankind.
Basing my corporate management style on this truth, I have resisted
the temptation to follow established business practices. I elected,
instead, to guide the Kao Corporation by applying many of the
principles of Prince Shotoku. As years of conventional perception
and behavior are not easily changed, and business structures are
designed to compete against each other, it is difficult to
incorporate these simple precepts into reality. We, at Kao, are
making a tremendous effort toward a corporate dream, but it remains
a dream -- much of the realization is still on the drawing board.
The Prince, not unlike the rest of us, had a dream. His dream was
realized when the majestic Horyuji, the most ancient Buddhist temple
in Japan, was completed. It is a magnificent tile-roofed edifice
that replaced a ramshackle thatch-roofed shelter as a place of
worship. The Prince, himself an architect, invited many people who
were highly cultured to lend their talents and skills to the
construction of the Horyuji temple.
Some of these people had been persecuted because of their religious
beliefs and, for various reasons, had become homeless exiles. They
established new communities and eventually reached the shores of
Japan by way of the Silk Road, China, and Korea. The exiles brought
their artistic and technical talents to a new country and utilized
them in constructing this proud structure that housed the original
version of the Hokke Sutra (until it was presented to the Emperor
Meiji).
After the structure was completed, the Prince began his personal
work -- interpreting the Hokke Sutra. At that time, the Japanese did
not have an established system of writing nor did they have writing
brushes or ink. He introduced the writing brush, ink, and paper at
the same time that he published his original interpretation. The
final product was the result of an arduous path that began when the
Prince sent Onone Imoko, Japan's first ambassador, to China to
obtain a copy of an exegesis on the sutra. Rather than borrowing
directly from his Chinese and Korean masters, Prince Shotoku sought
counsel from the Korean monk, Hye-ja. Thus, his Commentary reflects
original ideas. The finished pamphlet looks more like a working
manuscript, with patches of paper pasted here and there. It contains
a mixture of Chinese characters with representations of spoken words
in the indigenous oral tradition. Although shabby in appearance,
this document is revered as Japan's oldest work of literature and is
preserved to this day in the Imperial Palace treasury. But what did
the Prince have to say? Why is this manuscript so important? What
does it have to do with our lives now?
Prince Shotoku's Seventeen Article Constitution is widely known as
"The Constitution of Harmony." It expounds the belief that those in
high places can and should live in harmony with people in low
places. People in the upper echelon of society should be willing to
listen and be receptive to the ideas and needs of people in lower
positions.
"If you want somebody to do something, you should provide an example
by doing it yourself," he urged. Taking the initiative and setting a
good example will encourage opportunities and create incentives.
People will be prone to open discussions and "dharma" can be
achieved. Dharma is the belief that all forms of life are equally
important and the universe does not revolve around a singular being.
He recognized human vulnerability and stressed man's obligation to
man. Each person of status has a commitment to encourage and lead so
that all people are led closer to the truth.
"We are all wise and foolish, alternately, like a ring which has no
end." Regardless of the Prince's saintly reputation, he concedes
with that comment that no man is an unquestionable sage, nor is any
man an absolute fool. This is the crux of the entire document: All
men have the same inherent dignity, thus granting them total
equality.
And when it is necessary to discuss matters of law and life that
will affect all men, discussion should be among the masses -- not
among a select few. Thus, we find an unshakable foundation for
democracy as we know it today.
As I face my everyday tasks, I have used the Prince's teachings as a
foundation. But, through time, I have been inspired by other great
men. The Buddhist monk Dogen was a man of deep philosophical
thought. He was not so much a man of religion as a man of philosophy
who based his teaching on personal experiences.
I cannot pretend that I have mastered Dogen's thoughts but I will
venture an interpretation of what I feel is his major point. Dogen
believed that our perception of life is subjective. Therefore,
because of our limited vision, he felt that we would be unable to
comprehend the natural order of the universe. He explains that this
total understanding of the natural order of things is possible only
through concentration and dedication.
Whether a task is great or small, it should be completed to
perfection. Through total focus on the task at hand, be it sweeping
a kitchen or preparing a bowl of porridge for a mendicant monk, a
person will gain an acute awareness of the natural order of the
universe. And through this understanding, one will achieve "satori,"
or enlightenment, which will increase creativity and lead to
innovation.
Although Prince Shotoku and Dogen lived in very different periods of
time, I have learned from each of them. I sincerely believe in that
one universal truth -- that all men are created equal -- and I am
convinced that their wisdom must be introduced and practiced at Kao.
Progress is slow, and the process is time consuming. And, as I view
the corporate structure on a daily basis, the results are not always
evident. But, because of the strength and depth of my conviction, I
will continue.
A CLEAN NATION PROSPERS
Kao Corporation, as we know it today, is the result of history and
tradition. The tradition of equality and service began when our
founder, Tomiro Nagase, decided to make a quality bar of soap that
was affordable. This was the basis for our corporate philosophy of
commitment. As the years progressed, we added the wisdom of
experience, and I have more recently introduced my strong belief in
the ideal of equality among our employees.
Kao Corporation is and always has been committed to its consumers.
Since we strongly believe in our motto, "A clean nation prospers,"
we seek to provide the means to enhance the daily lives of our
consumers. We provide superior products that are the direct result
of consumers' requests and needs. Our goal is to serve the consumer
of the future with the same commitment as our predecessors served
the consumers of the past.
Our wisdom is based on experience that has been passed down to our
newest generation of Kao employees. These employees fully understand
our commitment and dedication to the consumer. They understand that
the basic thrust of business is not found in the bottom line.
Prosperity is a result of respect for the needs of the consumers.
The result of this concern for their welfare has promoted a
corporate name that is synonymous with pride and accomplishment.
For our company to reach greater heights, we must recognize the
equality of all people. As we become more aware of inherent human
dignity, we realize that there is no place in the corporate
structure for spurious authority. There is no place for
employer-employee vertical distinction, because there is neither a
top nor a bottom. We must create a shared code of conduct and
encourage a sense of unity among the entire work force. If
information is shared by everyone, the result will be an environment
conducive to creativity. In other words, I truly feel that the
result of respect and sharing is innovation.
Quick and decisive communication will be more necessary in the
future than it has ever been in the past. The previously partitioned
divisions have been integrated and unified with the help of
computers and advanced communication systems.
RADICAL REVIEW
This unification enables the entire Kao structure to function as a
single organism. The companywide network of information systems
ensures that the flow of information will reach every area of the
organization. We still have segregated divisions but we are making
progress to combine our efforts into a "total creative revolution,"
designed, ultimately, to improve our service to the consumer.
At many long sessions of corporate meetings, we have examined the
necessity of having total control and supervision concentrated
exclusively in the head office. As a result of those discussions, we
have removed many of the barriers of compartmentalization.
Since we have eliminated departments and department head positions,
everyone has a wider perspective and is better able to understand
the function of headquarters. A radical review and the reform of
entrenched thinking and organization has encouraged a wider range of
job allocation and promoted a far higher corporate morale.