Learning from Japanese Businesses: Ethics in Operational Excellence

Humanistic management in a non-Western context is underexplored, for example, in Japan. Despite numerous publications especially on Japanese management in the 1980s to 1990s the topic of humanistic management in a Japanese context remains largely unexplored. Using Toyota as a case, this article illustrates how a company has systematically implemented Japanese ethical principles based upon Confucianism, Buddhism, Daoism, and Shintoism in its corporate ethics and operations. These moral philosophies emphasize self-improvement, social cooperation, and contribution to society as foundations for good behavior regardless of an individual’s social position. We link some of these philosophic elements with humanistic management in an Asian context. In addition, we came to understand that Toyota’s organizational architecture, i.e., production system and product development rely on an integrated ethical system as their fundamental purpose of business activities, including an expectation that all workers collectively contribute to organizational success and harmony. This differs from many Western approaches which see profit as the purpose of the firm and view their ethical responsibilities in an ex-post fashion. These findings are important, as the scope of humanistic management practices globally needs to be expanded.