The influence of Zen Buddhism on Japanese business model

One of the directions of Tokugawa Ieyasu's policy was attribution of political control of Buddhist and Shinto temples, in the framework of which was formed a special department responsible for religious matters (jisha bugyô). All Buddhist schools were supposed to provide documents confirming their right to possess temples and lands owned by them. Population was attached to particular temples at the place of residence, regardless of their religious affiliation. Orders of bakufu practically turned Buddhist clergy into the part of bureaucratic apparatus, reducing its influence on intellectual and spiritual life of people (Zhukov, A. E. 1998a, pp. 416, 430, 550). Having described the Feudal period of Japan we must conclude in general that during Kamakura and the first part of Muromachi periods, Buddhist temples became to operate as economic agents more actively. It is worth to emphasize that it was exactly Buddhist priesthood which was among the first moneylenders and parties to contracts of sale and purchase. Being at the origins, Buddhist temples laid down the principal guidelines of these operations, providing a framework for implementation of bilateral and multilateral cooperation activities in the field of business. Nevertheless, starting with Oda Nobunaga actual governors and shoguns began to implement measures limiting political and economic influence of Buddhist temples. Their policies were designed to limit individual interests of Buddhist priesthood and to focus their attention on the fundamental issues of spiritual development and enlightenment.

Table 3. Buddhism and Zen Buddhism in historical retrospect (Jômon-Edo periods)

One of the main political decisions of XVII century was sakoku (“closed country”), the isolationist foreign policy of the Japanese Tokugawa shogunate. Since the middle of the XVI century Japan has been engaged in active trade with Spaniards, Portuguese and East Asian countries. However, foreigners began to operate actively as Catholic missionaries, interfering into the inner life of Japan and objectively contributing to development of separatist tendencies in the southern parts of Japan. Sakoku was taken as a countermeasure aiming at expulsion of the foreigners. This policy had both negative and positive consequences. Among negative ones was restraining of entrepreneurial activities of Japanese merchant class. Nevertheless, all internal impulses and ingenuity were focused on the development of domestic trade. As a result, were elaborated specific Japanese managerial style and business ethics, which turned out to be very effective even at modern stages of Japanese history (Zhukov, A. E. 1998a, pp. 332, 353-354).

2. Buddhism as a philosophical, religious and economic guideline

2.1 Overview of schools of Buddhism

Japanese Buddhist leaders rooted religious concepts with various aspects of everyday life enhancing further development of Buddhism. Buddhist schools developed in the framework of Japanese culture (Tendai Buddhism, Shingon Buddhism, Amidaism, Nichirenism and Zen Buddhism) differ greatly from continental parent schools. These schools themselves contain contradictory statements and doctrines. However, there are some common elements inherent to the teachings of practically all sects: acknowledgement of Shakyamuni Gautama as the founder of Buddhism and admission of his teachings as the basis of truth, belief in the “three precious things” (Buddha, the law and the church) and acceptance of morality, meditation and intuition as the proper tools to comprehend truth (Bunce, W. K. 2011, p. 47; Kitagawa, J. M. 1966, p. 110). We then consider brief characterization of main Buddhist schools developed in Japan.

Tendai Buddhism was founded by Saicho (767-822) also known as Dengyo Daishi. Its beliefs emphasized that the only way to realize supreme truth is through meditation, training and contemplation. Lotus Sutra was considered to be the greatest Buddhist scripture. Consequently, it taught universal salvation. According to the Tendai doctrine of ontology, there were “three truths” of three forms of existence: the void, the temporary and the “middle” or absolute existence. When these forms of existence were perceived in perfect relationship, one has attained the enlightenment of Buddha himself. Tendai Buddhism was popularized in Japan by an attempt to identify Shinto deities with those of the Buddhist pantheon and it was very popular during the IX and X centuries. The decline began in the XI and XII centuries, however, several contradicting doctrines of Tendai formed the basis for the formation of independent sects (Kim, Y. C. 1973, p. 116; Bunce, W. K., p. 63).

Shingon Buddhism was founded in the IX century by Kukai (774-835 A.D.), known also as Kobo Daishi. The Shingon philosophy was a pantheistic mysticism. The universe was perceived as a body of the cosmic Buddha Dainichi and all phenomena as his activities. Kukai formed his teaching on the basis of continental cosmological, psychological and mystical conceptions. However, he developed his own theory of ten steps of the spiritual ladder. He also tried to unify Buddhism with Shinto, making an attempt to reduce to a common denominator their conceptions of imperial power. Kukai introduced the theory ryôbu sintô (“the twofold path of the gods”), according to which Shinto deities were perceived as Japanese hypostasizes of Buddha and bodhisattvas. Such esoteric practices as incantation of mystic formulae made Shingon Buddhism popular among common people (Kim, Y. C., pp. 116-117; Bunce, W. K., pp. 69-70; Zhukov, A. E. 1998a, p. 210).

In the XII century, Amida Buddhism or the Pure Land (the Jôdo) School was wide spread in Japan. Amidaism was formed by Hônen (1132-1212 A.D.) in 1175. According to this school, salvation can be gained not only through one's effort, but also through the grace of and faith in Amida Buddha. Since XIII century, Amida Buddhism has been divided into several sects that has influenced life and culture of Japanese people greatly. It became very popular since it served as an “easy way” to attain salvation only through faith in Amida Buddha's grace and did not require long and hard meditation practices. It was based on the rejection of monasticism, asceticism and rituals. According to Hônen, calling of the name of Buddha (menbutsu) was considered enough to attain salvation (Kim, Y. C., pp. 117-119; Suzuki, B. 1981, p. 63) [Bunce, W. K. 2011, p. 80]:

The method of final salvation that I have taught is neither a sort of meditation such as that practiced by many scholars in China and Japan in the past, nor is it a repetition of the Buddha's name by those who have studied and understood the deep meaning of it. It is nothing but a mere repetition of the name of Buddha Amida, without a doubt of his mercy, whereby one may be born into the happiest land of the Buddha.

According to the Japanese scholars, it was preaching of Hônen that brought Buddhism out of the realm of magic and turned it into a mass religion. While at the forefront of early Japanese Buddhism was ideas of protection of the country and government, the primary objective at later stages was personal spiritual salvation. Strengthening of the Jôdo School in the XIII century owed to the Hônen'c disciple Shinran, who addressed his preaching first of all to “perverse” people in terms of traditional Buddhism, namely, to samurai and peasants. Shinran also affirmed that single-time calling of the Buddha's name is enough to “enter the Pure Land” (Zhukov, A. E. 1998a, p. 245).

Another Buddhism school developed in the XIII century was Nichirenism. Nichiren Buddhism was named after a great reformer, Nichiren (1222-1282), who was trying to return to original teaching of Buddhism maintaining concern for society and state of the concrete nation. He treated the Lotus Sutra as the core scripture of Buddhism. Attacking all other sects of Buddhism, Nichiren regarded himself as the savior of the nation. According to the Nichirenism, the only path to attain salvation is repetition of the sacred formula “Adoration to the sutra of the lotus of the true law.” He wrote political treatises and letters invoking the state to become a center of the Buddhist world, designating all calamities that Japan has faced including an attempt of foreign invasion as evidences that Buddha has turned away from Japan. For such sayings he was exiled by bakufu for several times (Kim, Y. C. 1973, p. 124-125; Zhukov, A. E. 1998a, p. 226).

Nevertheless, in this work we will study more precisely the philosophical doctrine of Zen Buddhism, focusing on its influence on Japanese business model.

2.2 Zen Buddhism

General remarks on what is Zen

Zen Buddhism flourished in Japan in the XII century. Zen is an equivalent to the Sanskrit term Dhyana or Meditation or Chinese Ch'an. It belongs to the Mahayana or Greater Vehicle School that emphasizes not only the necessity to reach personal enlightenment, but also the necessity to enlighten others. Initially Zen was founded in China in the VI century by an Indian monk, Bodhidharma. Its ideas were spread in Japan already since VII and VIII centuries; however, it began to flourish only when monk Eisai (or Yôsai, 1141-1215) founded the Rinzai School of Zen in 1191. After a while, monk Dôgen founded the Sôtô school of Zen. These two schools share similar views. The only difference is that the Sôtô school maintains book learning more than the Rinzai School. Sôtô school found fertile ground in the countryside among peasants and samurai of modest means, while Rinzai School was widely disseminated among the upper strata of the military class. One of the patrons of Rinzai School was Hôjô clan, which contributed to the spread of Zen Buddhism in every way. According to Zen, enlightenment can be gained only via immediate and direct intuitive understanding of reality. Zen Buddhism emphasizes not faith in a savior or education, but self-effort for mental discipline (Senzaki, N. 1953, pp. 9-11; Bunce, W. K., p. 88; Kim, Y. C., pp. 119-120; Zhukov, A. E. 1998a, p. 246). The following statement depicts the core principle of Zen philosophy [Suzuki, D. T. 1913, p. 9]:

A special transmission outside the Scriptures;

No dependence upon words and letters;

Direct pointing to the soul of man;

Seeing into one's nature and the attainment of Buddhahood.

Concepts of Zen Buddhism have significant influence on literature, drama, paintings, Bushido (the Way of the Warrior), tea ceremony, Judo and etc. There are several reasons due to which Zen has impacted the artistic impulses in Japan: 1) Zen monasteries were almost exclusively repositories of learning and art, at least during Kamakura and Muromachi periods; 2) Zen monks had opportunities to travel to the mainland learning more about foreign cultures; 3) political authorities stimulated activities of commercial enterprises operated by monks who brought foreign objects of art and industry to Japan; 4) aristocrats and representatives of politically and economically influential classes were patrons of Zen monks and monasteries willing to acquire main ideas and concepts of Zen Buddhism (Suzuki, D. T. 1973, p. 28). Zen philosophy has influenced the Japanese literature, tea ceremony and landscape gardening with the peculiarities of Zen spirit comprised in the conception of spirit of Eternal Loneliness, which is more known in the artistic field under the name of Sabi or Wabi (Ibid, pp. 23-24). The spirit contains such elements as simplicity, naturalness, refinement, familiarity and transparency that is combined with estrangement and everyday commonness. Sabi or Wabi constitutes tranquility, which enables to accept whatever is given and to appreciate poverty (Suzuki, D. T. 1913, 284, 293; Ibid, 1973, p. 283). Nevertheless, if we try to compare the spirit of Eternal Loneliness with Japanese business model, we will distinguish several commonalities as well. In the working style, Japanese managers are striving to simplicity and accuracy, performing routine work from day to day they continue to be guided by the principle of improvement and enhancement that refers us to refinement. Being a part of the company even for a long period of time, Japanese manager respects the distance between him/her and senior employees or top management maintaining hierarchical relationships in which each person has certain expectations of the other.

Zen is not a philosophy in the narrow sense of this word, since its system is not based on the principles of logic or analysis, no set of concepts. There are no sacred books in Zen with doctrines that should be read and accepted by all followers. Zen literature does not consist of abstract statements or conceptual reasoning, it is compiled from “anecdotes” or “incodemts” (innen) or “questions and answers” (mondo). At the same time, it is hard to treat Zen as a religion, as far as there is no God to worship, nor ceremonial rituals to observe on regularly bases and nor belief in immortal soul to take care of. Zen doctrine gives to human being a right to teach oneself on his/her own, only pointing to the right direction which should be followed intuitively. Only by means of certain intuitive modes of understanding a man can get free from the bondage of birth and death (Suzuki, D. T. 1964, pp. 38-39; Ibid, 1973, pp. 63, 352). As well as the key task for a Japanese manager is to provide conditions in which workers can develop and flourish giving instructions that might seem extremely vague for western businessmen. Thus, senior management can be characterized as supervisory rather than “authoritarian.” In order to facilitate personal growth of subordinates, manager is supposed to possess the leadership qualities. These skills involve encouraging subordinates to understand the meaning of work and goals, develop independent thought and to achieve results on their own. Moreover, the manager has to take into account and be guided in his estimations by personal abilities of subordinates as well as Zen master does not expect from his disciples to attain the similar perception of reality (Matsuo, M. 2015, p. 169). As we shall see later Zen has also influenced formation of work perception in Japan.

Zen and the study of Neo-Confucianism.

During the Kamakura and the Muromachi periods Zen monks from Japan frequently travelled to China, learning Chinese culture and assimilating it to the Japanese cultural background when returning. X-XIII centuries in China were characterized by redefinition of the role of Confucianism that began to be perceived as a mere study of ritual and the practice of earthly morals. Confucian concepts were rethought as well from the perspective of Zen Buddhism. At the same time, Zen monks studied Confucianism and quite often applied to Confucian concepts and principles interpreting them in accordance to their worldview. Consequently, returning to Japan, these monks brought both Zen and Confucian teachings. This affected specifics of Zen doctrine in the sense that its practicality was acquired from Confucianism. In the XIV-XV centuries, the “Five Mountains” served as publishing centers of the Zen books and Confucian texts and Zen monks were invited by provincial lords to educate their vassals, explaining Chinese books and highlighting main principles of Zen doctrine in connection with Confucian teachings (Suzuki, D. T. 1973, pp. 41-45).

It is perhaps appropriate at this point to illustrate how Confucianism has influenced formation of Zen Buddhism doctrine. To fulfil this task, we can refer to the Doctrine of the Mean. The essential point of this doctrine is that not only the ruler but also every person has its own Way that is predestined by the Heaven. To gain Confucian virtue a man has to follow instructions in accordance to this path [The Doctrine of the Mean, pp. 247, 248, 255, 269, 270]:

“What Heaven has conferred is called the Nature; an accordance with this nature is called the Path of duty; the regulation of this path is called Instruction.”

“The path may not be left for an instant. If I could be left, it would not be the path. On this account, the superior man does not wait till he sees things, to be cautious, nor till he hears things, to be apprehensive.”

“The superior man accords with the course of the Mean. Though he may be all unknown, unregarded by the world, he feels no regret. - It is only the sage who is able for this.”

“With the right men the growth of government is rapid, just as vegetation is rapid in the earth; and moreover their government might be called as easily-growing rush.”

“The duties of universal obligation are five. And the virtues wherewith they are practiced are three. The duties are those between sovereign and minister, between father and son, between husband and wife, between elder brother and younger, and those belonging to the intercourse of friends. Those five are the duties of universal obligation. Knowledge, magnanimity, and energy, these three, are the virtues universally binding. And the means by which they carry the duties into practice in singleness.”

These ideas were reflected in the teachings of Neo-Confucianism of Chu Hsi or Zhu Xi (1130-1200) who declared the great principle of propriety known as “Names and Parts” (ming fen). According to this principle, man being a part of the universe governed by the laws of Heaven has certain “name” and “part” (position in the society). In accordance with this position he/she is expected to perform specific services maintaining harmonious functioning of the network of social relationships [Chu Hsi, pp. 4, 6, 31]:

Law is Heaven's substance, the Decree is Law in operation, the Nature is what is received by man, and the Feelings are the Nature in operation.

…The Nature is the duty attached to the office which I thus receive, just as the duty attached to the office of district police is to arrest robbers, and the duty of the Comptroller of the Archives is the custody of documents; …

The possession of the Nature in itself means that we are acted upon by the external world. For example, when we recognize the daily obligations of the relationship between sovereign and minister, and father and son, our minds are being acted upon externally.

Parties of all types of human affairs, including ruler - subject or parents - children relationships, have well-defined obligations and duties towards their group members. There should be no violation or usurpation of names, titles, and parts (Suzuki, D. T. 2016, p. 98).

Chu Hsi frequently addressed to this principle in the political discourse fueling patriotic and nationalistic spirits against Mongolian invaders. Japanese Zen monks who visited China at that time borrowed the spirit and philosophy of social order developed by Chu Hsi and became the official propagators of Confucianism. Consequently, Zen Buddhism, even being a religion of universal validity, drew its practicality and nationalistic colors specific for Kamakura and Muromachi periods from Confucianism. Nevertheless, during the Tokugawa period occurred a conditional “separation” between Zen adherents and followers of Confucianism (Suzuki, D. T. 2016, p. 99-100; Ibid, 1973, pp. 47, 55-56).

This idea of social order was reflected in the strict social stratification developed in the beginning of the Edo period and has certain reflection on the division of responsibilities depending on the position and the qualification category in the modern Japanese companies.

Nevertheless, what is the reason due to which Zen has influenced different aspects of Japanese life? According to D. T. Suzuki, Zen is present in every life activity. Moreover, Zen is life itself and, hence, it refers to facts of life instead of concepts (Suzuki, D. T. 1913, pp. 259, 288). In this sense, it is practical which makes it applicable for various activities.

Zen and the Samurai.

For historical reasons, Zen Buddhism from the very beginning was embraced by the military class as an agency of cultural advancement and political consolidation. As has been mentioned earlier, Hôjô clan accepted Zen Buddhism in order to enlist the support of Zen monasteries in opposition to temples in Kyoto which were closely interrelated with the Imperial Court and had well-trained military troops. Consequently, certain confrontation between Zen and aristocratic priesthood emerged. This opposition was aggravated by nobility that had certain apprehensions towards Zen at least during the first decades of its spread. An imperial ban on Zen Buddhism teaching of Eisai in Kyoto accepted in 1194 and pressed ahead by Enryaku-ji supporters (representatives of Tendai and Shingon schools) served as one of the manifestations of these social moods. Another example was expulsion of Dôgen from Kyoto in 1230 three years after the foundation of the Sôtô sect. The reason for this was disaffection of Enryaku-ji with Dôgen's criticism and rejection of Tendai practices. Therefore, Kamakura, being the seat of feudal government and militaristic regime in those days, became the center of Zen Buddhism. Jufuku-ji, being the first Zen temple, was built there under the patronage of the Hôjô family attracting Chinese masters as well as Japanese ones who acquired knowledge about Zen doctrine when travelling to China. The first Zen follower of the Hôjô family was Tokiyori (1227-1263) who devoted himself to the study of Zen under the direction of Japanese and Chinese Zen masters serving as an example for his retainers (Suzuki, D. T. 1973, pp. 29, 63-63, 217).

It is worth noting that spirit and nature of Zen were in compliance with the intended character of samurai and his life. The main points of convergence between Zen and spirit of Bushido are aloofness from worldly affairs, exhortation to the willpower, virility and simplicity (Ibid, p. 30).

From a religious perspective, Zen Buddhism teaches samurai not to leave the chosen path but to follow it expressing the will power and not looking backward. From a philosophical point of view, Zen was embraced by samurai with its apathetic attitude towards life and death. However, the main reason for samurai' favor towards Zen was its practicality coupled with asceticism reflected in its simplicity, directness, self-denial and self-reliance; rather than the philosophical component since it was rather difficult to comprehend for relatively simple samurai's mind. Samurai, constantly facing the death, has to be free from attachments to various objects and life in general. His single-minded focus on fight is exactly strengthened by will, stoicism and asceticism (Suzuki, D. T. 1973, pp. 61-62).

Zen Buddhism being embraced by the Hôjô family, concentrating in their hands political, administrative and judicial power, must have influenced the state affairs and relationships between shogun and his subordinates (i.e. army).

However, already in 1317 supporters of Zen Buddhism occupied almost all highest levels of hierarchy in the Imperial Court (Zhukov, A. E. 1998a, p. 250).

There were two influential professions during the Muromachi period: priesthood and soldiery. As far as shoguns were faithful adherents of Zen Buddhism their generals followed their suit. This combination of two professions contributed into the creation of Bushido or “the way of the warrior”, according to which the samurai must be loyal, benevolent and dutiful. However, in order to possess these qualities samurai had to train moral asceticism and be ready to face death unhesitatingly. Zen, in its turn, addresses the issue of death without ritualism or sophisticated learning, therefore attracting samurai, who as well as Zen monks faced reality and not conceptualization. Zen teaches that in order to be ready to give life at any time, it is necessary to attain state of “no-mind-ness” also known as mushin, which is a state of mind free of dualities and any concerns about death or immortality (Suzuki, D. T. 1973, pp. 69-70, 72, 74, 94, 194).

The Way of the Samurai is found in death. When it comes to either/or, there is only the quick choice of death. It is not particularly difficult. Be determined and advance. To say that dying without reaching one's aim is to die a dog's death is the frivolous way of sophisticates. When pressed with the choice of life or death, it is not necessary to gain one's aim [Hagakure, p. 1].

Thus, the Way of the Samurai is, morning a?er morning, the practice of death, considering whether it will be here or be there, imagining the most slightly way of dying, and putting one's mind firmly in death [Ibid, p. 31].

If a warrior is not unattached to life and death, he will be of no use whatsoever. The saying that «All abilities come from one mind» sounds as though it has to do with sentient matters, but it is in fact a matter of being unattached to life and death.

With such non-attachment one can accomplish any feat. Martial arts and the like are related to this insofar as they can lead to the Way [Ibid, p. 82].

Nevertheless, in the beginning of the XVII century changing living conditions in Japan forced Shinto and Buddhist monks, samurai and peasants to alter their habitual foundations and traditions. Most of them became merchants. As a result of policy known as heinô bunri (separation of samurai from peasants) pursued by Toyotomi Hideyoshi, part of samurai class remained in the villages. They began to be called gôshi (rural samurai) and were deprived from the right to carry a sword, which actually meant deprivation of their former social status. However, having rather good material base, they began to be engaged in trade activities. Moreover, during the Tokugawa period powerful feudal lords daimyôs, who were promoted from the ranks of samurai, have been forced to concentrate on economic activities. This tendency was mainly common for daimyôs who were in opposition to Tokugawa Ieyasu (tozama daimyô). Various repressive measures were applied to them (reduction of land properties, compulsory military service). However, the most burdensome duty was construction and repair works in Edo, supply of workforce and materials costs for which were imposed on daimyôs. Consequently, this led to the impoverishment of their principalities, emphasizing the necessity of new sources of income. Furthermore, in the beginning of XIX century virtually no daimyô remained who paid fully to their vassals. As a result, hundreds of thousands of samurai lost their sources of income turning into rônin. Some of them became brigands, and another part saw the potential in performance of productive work. These factors in conjunction with the decline of martial arts of samurai resulted in alteration of their main field of activities and formation of firms that currently have centuries-old history (Zhukov, A. E. 1998a, pp. 408, 412, 458, 507, 576).

Codes of conduct of Mitsui and Sumitomo Houses.

Mitsui is one of the oldest and largest trading companies, which traces its history since XVII century. The founder of Mitsui Group is Takatoshi Hachirôbei, whose clan refused from samurai title and decided to start performing trade operations despite the fact merchants occupied the lowest layer of the social ladder at that time. It was a well-thought strategic decision. The first business of Mitsui family was cloth trade and the first exchange house of Mitsui clan was opened already in 1683 in Edo. One remarkable fact deserving notice at this point is that they introduced the principle of selling goods at fixed prices. In 1710 was created an organizational and legal system of Mitsui clan (ômotokata). Establishment of the headquarters of the house business was related to the Takatoshi's will stating that the property should not be divided among his children but kept as a common property, and that the house business should be carried on as a joint enterprise of his descendants. All subsidiaries were accountable to ômotokata and all members of the House of Mitsui were expected to be loyal to the head of Mitsui houses oyabun. Furthermore, Hachirôbei compiled a set of rules of 25 paragraphs for employees (August 1675). These rules referred not only to the range of responsibilities and trade rules, but also to the rules of conduct and relationships between employees. For diligent work, employees were provided with incentives. New employees were supposed to show piety to long-working and elderly people. These principles formed the basis of the House code of 1720, according to which “any member of the House, who will not obey the instructions of the oyabun and who should fail to be diligent in the house business but become insolent, shall be, after consultation by the house council, retired from his position…” (Zhukov, A. E. 1998a, pp. 485-486, 489-491, 494-496; Horie, Y. 1966, pp. 5-6).

Employees of the House of Mitsui were called motojime. House Constitution declared that the house would be in peace when the master and the servants are in harmony in everything (Horie, Y., p. 13).

These facts give rise to important conclusion that Mitsui clan managed to deploy multifaceted activity proceeding from specific socio-economic conditions. They created their own business model, which later formed the basis of modern Japanese management.

One of the founders of the leading financial and industrial corporations, Sumitomo Group is Masamoto Sumitomo (1585-1652). He was a Buddhist monk and adherent of Nehan school. When persecution on this school started, he took off monk's robe and opened a shop, selling books and medicines. In a consequence, production and sell of high quality copper have become the main source of income. As a result, Sumitomo became to operate as a leading supplier of copper both in the domestic and foreign markets. Masatomo described principles of business conduct in Monjuin Shiigaki (Founder's Precepts). Principles described in this document served as percepts for the House of Sumitomo during the Edo period and formed the basis for Sumitomo's modernization in the Meiji period. The letter began with the cautionary remark that principles described could be applicable not only to business but to all situations. There were listed four things one should refrain from: 1) purchasing goods of uncertain provenance offered below the normal market price (probably stolen property); 2) taking custody of goods from anyone; 3) serving as a guarantor for others; 4) buying or selling goods on credit. These admonitions were aimed to encourage soundness of business operations and observance of all laws and regulations. The concluding principle raised the issue of interactions with others: “never lose your temper or speak with harsh words; politely explain your position until an understanding can be reached”. In the XVIII century were compiled charters of Sumitomo family, which main purpose was preservation of business and capital. According to them, thrift, business savvy and thorough accountability were encouraged. They also determined relations with employees and contained numerous prescriptions regarding business management and relationships with clients (Zhukov, A. E. 1998a, pp. 497-501; Spring of Integrity, pp. 1-3).

Charter regulating operations on the copper mine Besshi was completed in 1721 and consisted of 13 rules. It is of interest to take into consideration the rule number 12, according to which while addressing the issue of prices it is worth to take into account collegial decision. Such a practice of making decisions is typical for many modern Japanese firms and enterprises. Paragraph 13 stated that it is necessary to implement vocational training of related occupations in mines, which would allow in case of productive needs to use workers in different positions, as far as employees would have an experience of work in different production sites. This practice of “personnel reshuffle” or “rotation of staff to different positions” is common for modern Japanese companies as well (Zhukov, A. E. 1998a, p. 501).

In 1750 was created a charter for the main firm in Osaka, from where various activities of Sumitomo clan were controlled and managed. Particular attention was paid to the organization of labor: among the duties of the employee was maintenance of order in the workplace. The main point is that this charter enunciated principles, which still underpin activities of Japanese firms, defining their specific microclimate. Paragraph 19 underlined respectful attitude towards elder colleagues. Interests of the clan ought to be kept above interests of particular family or individual worker. This corporate spirit, manifested in the employee's loyalty and devotion to the firm's ideals, can be observed in modern Japan as well (Ibid, pp. 503-504).

Ethics of professional activity were to a large extent related to the shingaku (“the religion of pure heart”), which ideas constituted a synthetic compound of various elements of Confucianism, Buddhism, Taoism and Shinto. The main objective of shingaku was substantiation of moral values of entrepreneurial activities. Diligence in performing one's duty, loyalty and professional skills were highly appreciated. Employee was expected to perform filial responsibility towards the head of the clan. Sumitomo family introduced apprenticeship system aimed at instilling of rules of conduct and rules of interrelationship in the group (Zhukov, A. E. 1998a, p. 504).

Charters of the House of Sumitomo were not directly and specifically targeted at the continuous expansion of business dealings. They advocated human diligence and sincerity and aimed to promote personal integrity (Spring of… p. 2).

One of the main differences between managerial practices of Sumitomo and Mitsui houses was fixed in the House Code (1882) and the House Constitution (1981) of Sumitomo and was related to the position of the house head. According to the House Constitution, the main task of the house head was maintenance of the welfare and prosperity of the house business as well as honor and respect of ancestors and education of the disciples. However, he was expected to consult with top-employees in matters such as appointment, dismissal, reward and punishment of employees. These restrictions of house head's power were recorded in the House Code (Horie, Y. 1966, pp. 6-7). This can serve as an example of already formed Japanese-style decision-making process.

At the beginning of the First World War enterprise units of Mitsui and Sumitomo took the form of zaibatsu, concern-type based monopolies, in the center of which were holding companies, regulating operations of multitude subsidiaries. Zaibatsu made a significant contribution to the development of heavy industries and gained political influence. By the end of the Second World War, their economic power had grown tremendously due to the fact heavy industries were of highest priority during the war years. Nevertheless, under the pressure of American government, zaibatsu were dissolved and anti-monopoly legislation was enacted. Their property, securities and property rights in subsidiaries had been forcibly removed and sold. This provided an impetus to the market economy and the principle of free competition. However, the process of dissolution did not affect central banks of former zaibatsu, allowing them to become centers, around which the process of reunification of enterprises has started in the 1960-s. Currently, both Mitsui Group and Sumitomo Group operate as ones of the leading and largest Japanese keiretsu (Zhukov, A. E. 1998b, pp. 239, 273, 279, 513, 518-519, 524, 553).

Having described charters of Mitsui and Sumitomo Houses we must conclude in general that foundations of Japanese-style management were established in the XVIII century. Human research management was based on the principle of close-knit community. Already at that time management policy contained such elements as life-time employment, age-based hierarchy, maintenance of harmonious relationships, discipline, collective decision-making process and humanistic management. Employees and companies were interrelated not only by economic relations but family-type ones grounded in mutual responsibilities and duties.

We thus arrived at the following conclusion, Buddhism, in general, and Zen Buddhism, in particular, being religious and philosophical teaching was embraced by samurai as a framework of ideas allowing them to reconcile with reality and their social duties. However, due to the historical circumstances they were forced to change their major field of activities. By that time, when samurai began to open their first shops and began to be engaged in their first economic operations, Buddhism has already had centuries of experience in the sphere of commodity and money relations. Hence, it could serve as a guidance of principles of labor organization.

3. Impact of Zen Buddhism on Japanese business culture

3.1 Display of Zen principles on distinctive features of Japanese management

In this paragraph we will distinguish distinctive features of Japanese-style managerial practice that were affected by main principles of Zen Buddhism.

Meaning of work.

Work in Japan is considered to be an activity that adds meaning to life. This is related not only to the fact that in Japanese society person's status in company refers to one's position in the workplace as well as to his/her social status outside of a company. However, this particular perception of work is also emphasized by the Buddhist view that work is a spiritual discipline leading to the achievement of Nirvana. For Zen monks there is no work beneath their dignity, they believe in the holiness of manual work. Zen Buddhism maintains business related values are able to encourage workers to be more diligent and loyal. Moreover, according to Buddhism mindset a moral and a good person cannot be characterized by idleness (Alston, J. P. 2005, p. 71; Suzuki, D. T. 1964, p. 118).

We can draw a parallel between readiness of Buddhist monks to take any work and a Japanese practice called Jinji ido that means re-distribution of personnel as a way to help people develop in their careers and keep from stagnant. As a result of this “personnel reshuffle” an employee can be assigned to various positions in various office locations. Furthermore, traditionally job boundaries in Japanese companies were not clearly defined. Employees were not provided with job descriptions since they were supposed to work flexibly beyond their job responsibilities and subunits. This practice as a result created valuable knowledge and skills for innovation and contributed to company's development of competitive advantages. This management style, that pays particular attention to multi-skilled workers, is called Genba Shugi. As you might recall such vocational trainings were already common for work organization in Sumitomo's mines (Fukui, N. 2015, p. 147).

Role of human relationship

The impact of Zen Buddhism is also reflected in the role of human relationships in Japanese society as far as it underlines the significance of tolerance and spiritual equality, respect for elders and loyalty. In terms of business, it determines community characteristics of Japanese managerial practices that distinguish it from management systems of other countries and contribute to the success of Japanese companies (Haghirian, P. 2010, 125-126; Kambayashi, N. 2015, pp. 2-3). Family and formal relations are of the predominant role as long as they endow a person with social status, and are based on informal rules and connections. It is considered that good human relationships help to facilitate business interactions and development. Consequently, to maintain strength and breadth of relationships, it is important to have good relationships not only with colleagues and customers but also with competitors. The core principles of Japanese interpersonal relationships are concepts of reciprocity and harmony. To maintain them, subordinates should be loyal to their superiors, and superiors should be concerned with the well-being of subordinates. Even now it is typical for Japanese CEO to have frequent meetings with middle managers and junior employees, holding group meetings or visiting job sites (Tanaka, K. 2015, p. 27). Furthermore, the main aim of negotiations is to reach consensus by making each member to be involved in this process. Group consensus and cohesion are maintained by amae or “dependence on the benevolence of others” that ensures mutual performance of duties.

No decision will be taken unless all members reach an agreement. This emphasizes equality of people taking part in the decision-making process and significance of their opinions within the company.

This traditional Japanese-style management is characterized by the term participative “bottom-up management”, defining the system under which both managers and employees share significant information taking into account company's philosophy and vision. Core element of Japanese bottom-up decision making is ringi seido or ringi system, that defines the procedure of particular idea's discussion, confirmation, carried out by all those who might have input into or be affected by the decision. Before the proposal will be affixed by contributors' seals, it will be circulated among contributors and discussed in face-to-face meetings. This aspect of the process is called nemawashi (Bird, A. 2002, p. 50).

Maintenance of long-term good relations also has several reflections on the way how Japanese managers treat their customers and partners. Namely, I would like to mention aftersales personal visits and a culture of giving gifts. These practices express the desire not to be limited solely by business interactions but to establish closer and more confidential relations.

Focus on customers might be also related to the Buddhist strive to reach self-abandonment or the state of egolessness (muga or non-âtman). It was a state of mind which attainment was considered essential for samurai. In general, it is considered that there two main ways of Zen realization: recognition of inanity of all forms of objectivity and rejection of ego substances (Senzaki, N. 1953, p. 38). Zen Buddhists believe that suffering is the result of obsession with our own desires and egos. It is ego that makes it impossible to accept everything that confront us. Moreover, the feeling of “self” is considered to be an obstacle to the execution of work. When we are motivated primarily by the sense of self-pride or self-conceit, it devaluates our performances and achievements (Suzuki, D. T. 1913, pp. 289-290; Ibid, 1973, p. 144).

Hence, it is necessary to get rid of egocentrism, differentiating our own interests and clients' or suppliers' ones, and to be guided by common interests and concerns. In other words, Buddhism guides us on the path of correcting our mindsets and behaviors that results in attaining moderation, known as the Eightfold Path of Righteous Living.