The influence of Zen Buddhism on Japanese business model

Right action and right mindset.

The Eightfold Path of Righteous Living consists of: right thought, right speech, right actions, right livelihood, right understanding, right effort, right mindfulness and right concentration. Here we can trace linkages to the Japanese way of doing business. In Japanese companies pursuance of self-interests can be regarded as a threat for harmony and more respectful position of `senior' members. Employees tend to subsume their individual interests to the collective expectations to such an extent that it leads to the emergence of an extreme cultural cohesion. Consequently, Japanese managers are expected to understand and accept business model, values and strategy of company he is working for. His/her actions and words ought to correspond to the position in the company, specific situation and accepted rules. Efforts should be focused and concentrated on long-term growth and development of the company. This is the behavioral model expected by the top management from employees. Such a vision was even reflected in the charter of the main firm of Sumitomo family in Osaka as we have studied above. Consequently, the Eightfold Path of Righteous Living refers us to the focus on doing the right thing prevailing in the Japanese business interactions.

However, it should be mentioned that as well as in Buddhist practices this moderation can be reached only as a result of trainings; in Japanese companies trainings are also aimed at making recruits be acquainted with company's working style in order for them to behave further in accordance to it.

Japanese attitude towards the contract and significance of circumstances

In Japanese business culture, mutual trust is the most essential part while doing business. Thus, it is not necessary to sign detailed contracts. Even if there is a written contract, content is very simple and brief. It reflects Buddhist perception of life according to which reality is inconstant. In such conditions, human kind is expected to be flexible in order to be able to adapt to occurring changes in surrounding environment (Gloria, G. 2015, p. 6).

Flexibility also serves as a factor that has an impact on companies' ability to respond to constantly changing environmental conditions. In the business field, strategic flexibility is considered as a capability to define major alterations in the external environment, promptly allocate resources to new courses of actions in reply to those alterations and act quickly when existing resource commitments becomes out-of-date (Sato, Y. 2015, p. 76; Shimizu, K. 2004, p. 44).

The only way to attain flexibility is to get rid of attachments. Words, themselves, are attached to certain conditions and circumstances. Hence, they become meaningless as soon as they are taken out of their original context. Furthermore, words tend to detach from certain contexts and turn into conception. Whereas, conceptualization is exactly what Zen Buddhism strives to avoid (Gloria, G. 2015, p. 6).

Empty-handed I go, and behold the spade is

in my hands;

I walk on foot, and yet on the back of an ox

I am riding;

When I pass over the bridge,

Lo, the water floweth not, but the bridge doth

Flow [Suzuki, D. T. 1964, P. 58].

(Gatha of Jenye (Shan-hui, A.D. 497-469))

If in certain circumstances it worth to call spade not a spade in order to reflect more precisely surrounding reality, we have a right to do so. This statement highlights the significance of circumstances, regardless of which, Japanese businessperson is expected to make right judgements and right actions.

We can trace some roots of the significance of circumstances in the situational behavior of Japanese managers. According to that model, a group of factors (place, ranks and status of people, etc.) determines appropriate behavior.

Here I would like to return to the question of the contract. It is considered to serve as a formal testimony of long-term trust-based relationships established rather than an instrument used by parties to designate mutual duties and obligations. It enables parties to sit down repeatedly at the negotiating table if required, underlining the significance of long-term relations to be maintained rather than focusing on short-term intermediate results.

Such an attitude towards the contract also reflects Zen Buddhists' view on the significance of words and sacred sutras. It is considered that true and sincere attitude cannot be expressed through words. Relationships between two parties can be perceived trust-based in case if they can predict another party's thoughts and actions without words. Personal spiritual experience is estimated to be of more importance than sutras (Suzuki, D. T. 1964, pp. 32, 34). This point of view can be illustrated with several passages from the Essays “Kechimyakuron” or “Treatise on the Lineage of Faith”:

“If you wish to seek the Buddha, you ought to see into your own Nature; for this Nature is the Buddha himself. If you have not seen into your own Nature, what is the use of thinking of the Buddha, reciting the Sutras, observing a fast, or keeping the precepts? By thinking of the Buddha, your cause may bear fruit; by reciting the Sutras your intelligence may grow brighter; by keeping the precepts you may be born in the heavens; but as to seeking the Buddha, you are far away from him” [Suzuki, D. T. 1913, p. 87].

“When this [seeing into one's own Nature] is not attained, one cannot escape from the transmigration of birth-and-death, however well one may be versed in the study of the sacred scriptures in twelve divisions. No time will ever come to one to get out of the sufferings of the triple world… When Mind is not understood it is absolutely of no avail to recite and discourse on idle literature. If you want to seek the Buddha, you ought to see into your own Nature, which is the Buddha himself” [Ibid, pp. 87-88, 95- 96].

Spiritual enlightenment even as can be gained via practicing zazen (sit in meditation). Words are considered to be an inappropriate tool for expressing the true nature of Zen teachings. The latter, itself, cannot be the subject of logical narration (Suzuki, D. T. 1964, p. 34).

The main objective of Zen is to attain comprehension of the reason of existence. Nevertheless, the ordinary logical process of reasoning is considered by Zen to be inefficient, because logic as well as words can lose their practical value while they cannot correspond to the actual facts or conditions. According to Zen, reality is free from attachments to distinct denominations or names. Words and logic make people suffer. What can contribute into the achieving of spiritual enlightenment is seeking for a new point of view that was unavailable earlier and can expand the boundaries of consciousness. Acquiring a new viewpoint is called satori. Satori cannot be gained through the understanding. It is an outcome of simplest possible experience, of an insignificant event, after which person realizes that everything he wants to see and comprehend always was nearby. Moreover, it is noteworthy that this experience should be gained by person himself and not be put in from the outside. Satori can be perceived as an intuitive looking into the nature of things in contradiction to the analytical or logical understanding of it. As to the attaining of satori, Zen only indicates the way and then it comes to one's personal experience to follow up the indications and reach the goal. After attaining satori, all opposites and contradictions are unified and harmonized into the whole system. The only thing that all this time prevented enlightenment were you. Thus, Zen states there is nothing to explain or teach. The knowledge should be comprehended on one's own (Suzuki, D. T. 1964, p. 40, 59-61, 88, 92; Ibid, 1913, p. 84).

Satori can be characterized in the following ways: 1) irrational, as it is not knowledge attained by reasoning; 2) intuitive insight, pointing to the fact satori contains an element of “seeing” or “looking into”; 3) authoritative, knowledge reached by satori cannot be disproved by any logical argument; 4) momentariness, it is a momentary experience; 5) accompanying feeling of exaltation related to the awareness of restrictions removal; 6) impersonal tone that can be defined in comparison to Christianity as far as Zen Buddhism lacks references to feelings or relationships as Father, the Son of God, beloved and, etc. Furthermore, satori is not a result of an extraordinary phenomena as in Christian books, but a result of an ordinary experience in one's daily life; 7) affirmative attitude towards all existing things. It is an acceptance of things regardless of their moral values (Suzuki, D. T. 1913, pp. 103-108).

Absence of clings to life and fear of death is an illustration of affirmative attitude of Buddhists. If we are afraid of death, we perceive it as a negative phenomenon and, hence, continue to flow in dualism. While accepting facts as they are, we cease seeing the world in dualistic manner. The last characteristic of satori refers us to the acceptance of facts distinctive for Japanese business model. Occurred event is perceived as inevitable and as a fact that you have to deal with. Such an attitude allows accumulating time and resources to face new circumstances and adapt business strategies and corporative goals to them.

One may appropriately quote passage from The Book of Five Rings that draws parallels between volatility of samurai' and merchant's lifestyles and states an imperative for consideration of temporary nature of “the highs and lows” while setting an appropriate strategy:

There is timing in the whole life of the warrior, in his thriving and declining, in his harmony and discord. Similarly, there is timing in the Way of the merchant, in the rise and fall of capital. All things entail rising and falling timing. You must be able to discern this… This is the main thing in strategy. I t is especially important to know the background timing, otherwise your strategy will become uncertain [A Book of Five Rings, p. 48].

Importance of silence

“Silence speaks a million words, and a million words express nothing but silence” [Senzaki, N. 1953, p. 12].

Being verbose and argumentative is not typical for Japanese business people who give preferences to facts without emotional or conceptual dimensions. Triviality of words is related to the fact that conceptual contexts determine their meanings. However, silence is not constrained by such boundaries and truth can be comprehended only in silence (Garcia, G. 2015, p. 7). It specifies significance of silence that has reflections on Japanese business culture, namely, on haragei or the way of conducting of negotiations during which expanded context is gained from a surrounding environment. In case of controversial issues, appealing to silence (chinmoku) is a way to release the tension and enable parties to continue negotiations. Moreover, silence can express an intuitive understanding between the interlocutors. The meaning of the context and silence as a communicative tool may vary depending on the situation. Hence, non-verbal communication adds value to the verbal communication.

According to the studies conducted by Edward. H. Hall, this feature attributes Japanese culture to the framework of high-context (HC) cultures. In high-context cultures, specifics of sharing information require extensive cultural programming and emphasize on stability. Communication is considered as an art that reflects cultural identity (Hall, E. T. 1976, p. 110; Cardon, P. W. 2008, p. 401). Japan can be classified as a HC culture also on the basis of analysis of traditional characteristics of Japanese style management, including long-term planning, participative management, trust and interdependence, emphasize on teamwork and cooperation (Sato, Y. 2015, p. 67).

Self-control and self-discipline

However, ability to conceal personal reaction, emotions and feelings not expressing them in words, testifies that in the system of priorities one's own state of mind is less significant than the state of society. This is a display of self-control and self-discipline.

Adherence to self-discipline is indispensable in aspiration for perfection. Deliverance as well as purification can be attained only when person is conscious of every thought, word and act (Senzaki, N. 1953, p. 24).

Self-discipline is expected to be one of the main characteristics of Japanese managers. Being a part of a company, the Japanese employee should be guided by company's strategy and cultural value and has to follow the instructions of superior not subjecting them to doubt or controversy even if he has some concerns. Furthermore, such peculiarities of Japanese business negotiations as minimal body language, sitting in a formal upright posture, not expressing any reactions or emotions can be also interrelated with self-control.

Avoidance of categorical statements

Furthermore, one of the consequences of attachment to words is contradicting and differentiating view of things, according to which a person begins to think and evaluate facts in dualistic terms or connotations (Suzuki, D. T. 1964, p. 60). Either something is “black” or “white”, “good” or “bad”, “right” or “wrong”. This is exactly what Zen is trying to avoid.

Shuzan (Shou-shan, 926- 992) once held up the shippe to an assembly of his disciples and declared: “Call this a shippe and you assert; call it not a shippe and you negate. Now, do not assert nor negate, and what would you call it? Speak, speak!” One of the disciples came out of the ranks, took the shippe away from the master, and breaking it in two, exclaimed: “What is this?” [Ibid, p. 66].

In modern Japanese way of doing business, aspiration to avoid categorization is manifested in the manner of conducting business negotiations. For instance, Japanese people strive to avoid saying directly “No”. On the one hand, it is done on purpose to maintain harmony in relationships, and, on the other hand, lack of categorization leaves a room for a maneuver. In case if circumstances change person is not obliged to that “No”. The same situation is when we say “yes”.

The main objective of Zen discourse about the significance of words is not to force people to abandon them [Suzuki, D. T. 1964, p. 69]:

Hoyen (Fa-yen, died in 1104) once asked, “When you meet a wise man on your way, if you do not speak to him or remain silent how would you interview him?”

However, this discourse aims at harmonizing antithesis, at making statements in which affirmation and negation, silence and oratory will be somehow combined [Ibid, pp. 68, 70, 86-87]:

1. Toku-san (Tehshan, 780-865) used to swing his big stick whenever he came out to preach in the hall, saying, "If you utter a word I will give you thirty blows; if you utter not a word, just the same, thirty blows on your head."

2. Kyogen (Hsiang-yen) said: "Suppose a man climbing up a tree takes hold of a branch by his teeth, and his whole body is thus suspended. His hands are not holding anything and his feet are off the ground. Now another man comes along and asks the man in the tree as to the fundamental principle of Buddhism. If the man in the tree does not answer, he is neglecting the questioner; but if he tries to answer he will lose his life; how can he get out of his predicament?"

3. A monk asked, "Where is the abiding place for the mind?"

"The mind," answered the master, "abides where there is no abiding."

"What is meant by 'there is no abiding'?"

"When the mind is not abiding in any particular object, we say that it abides where there is no abiding."

"What is meant by not abiding in any particular object?"

"It means not to be abiding in the dualism of good and evil, being and non-being, thought and matter; it means not to be abiding in emptiness or in non-emptiness, neither in tranquility nor in non-tranquility. Where there is no abiding place, this is truly the abiding place for the mind."

I would like to get back to emphasis of flexibility towards occurring changes that came up earlier in our discussion. It is also reflected in the concept of kaizen, continuous and incremental improvement of quality, which main aim is to enable organizations to respond quickly to altering demand patterns (Allan, B. 2002, p. 451).

Emphasis on observation and learning

According to the Zen doctrine, truth and essential ideas can be grasped only by means of personal experience as far as origins of concepts trace their roots in it. As was mentioned earlier satori or acquiring of the new point of view is an outcome of simplest possible experience. This makes Zen teachings to be closely linked with everyday life, distinguishing Zen from other Buddhist sects. In the sociocultural, religious and philosophical framework of Far East, Buddhism has become a practical discipline of life (Suzuki, D. T. 1964, p. 32, 36-37).

This attitude reflects the focus of Japanese companies on observation and learning based on experience. For instance, when it comes to the development of new product companies use information gained from their customers and their reviews. Here we can as well make a reference to the Japanese-style production practice kaizen that denotes not only endless improvement but also day-to-day accumulation of the results by virtue of such practices as quality control circles. Being integrated into the Toyota production system (TPS or Lean production) this accumulation aims at facilitating higher levels of productivity and quality. In general, practice-oriented inductive ways of conducting research and development are more inherent to Japanese people than theory-oriented deductive ways (Allan, B. 2002, p. 260).

We may also examine the example of jinji ido or “personnel reshuffle” that facilitates company's maintenance on lifelong learning and aspiration to help people develop in their careers keeping them from stagnancy.

However, it should be noted, that despite the fact technical trainings are important from the point of view of skill improvement, according to the Zen worldview it is an artificial and conscious way of experience accumulation. Person's mind is expected to reach such a state when natural growth and spontaneity of skills is feasible. Obtaining this state is attaining satori which meaning is hidden in daily concrete particular experiences, such as eating, drinking and business of all other kinds (Suzuki, D. T. 1973, pp. 14, 16). In one's humble point of view, this is exactly what kaizen aims at in respect of technology and skill improvement. Not only to reach mechanicality and precision of actions but to be able to go beyond assumed abilities, to obtain creativity of mind. This, in its turn, can lead to innovations and technological revolutions that can be perceived as practical displays of satori. One must not forget to mention in this connection that Zen pays particular attention to the spirit of creativity, which is considered as an ability to turn what is possible into an actuality. It is necessary not to copy or imitate, but to give to the work output something living in its own right. This approach to any kind of manual activities also reflects understanding of physical, intellectual, moral and spiritual limitations of the person. This understanding has given rise to a desire for transcending ourselves (Ibid, pp. 36 -37, 279).

One may also draw parallels between technical trainings of workers and samurai' trainings in the use of the sword. The latter was considered to be conducive to moral and spiritual enhancement. Nevertheless, in this case trainings were supposed to be not merely technical, but to be conducted in a way that man was delved deeply into the inner spirit of it. This could enable him to go beyond his personal limitations attaining the state of mind known as mushin (Suzuki, D. T. 1973, pp. 70, 93-94).

One may appropriately quote letter of Takuan Soho to Yagyû Tajima no Kami Munenori describing the relationship between Zen and the art of swordsmanship:

The term ignorance means the absence of enlightenment. Which is to say, delusion. …To speak in terms of your own martial art, when you first notice the sword that is moving to strike you, if you think of meeting that sword just as it is, your mind will stop at the sword in just that position, your own movements will be undone, and you will be cut down by your opponent. This is what stopping means. …if you do not think of striking your opponent and no thoughts of judgments remain, … the sword that was going to cut you down will become your own, and, contrarily, will be the sword that cuts down your opponent. In Zen this is called “Grabbing the spear and, contrawise, piercing the man who had come to pierce you”. …In Buddhism, we call this stopping of the mind delusion. Thus we say, “The affliction of abiding in ignorance” [The Unfettered Mind, p. 4].

This passage might be interpreted in terms of business culture. First of all, it refers us to the flexibility of mind described above. “Stopping” at the sword is similar to “stopping” at occurred misleading changes that create confusion. Attaining flexibility man can easily adapt to constantly altering reality and act in accordance to it, which is crucial in the business sphere. Secondly, use of the enemy's sword to cut him down is a strategy or tactic applicable against rivals or competitors.

Nevertheless, what is the reason due to which Zen Buddhism does not treat book learning as something of significant importance as well as practical training is not considered enough for attaining mastery in the art of the sword. It can be explained in the following way: as a result of book learning or practical training we become intellectually burdened by rules and concepts, in accordance with which we begin to act and assess one's actions. Consequently, one's mind does not possess native fluidity and cannot act intuitively in order to fulfill functions required at a certain point. The aim of Zen is thus to return to the original state of purity and transparency of mind and afterwards to preserve its integrity. According to Zen Buddhism, fluidity of mind is distinctive feature of state of “no-mind”:

When this No-mind has been well developed, the mind does not stop with one thing nor does it lack any one thing. It is like water overflowing and exists within itself. It appears appropriately when facing a time of need…. Regardless of what a person does, when he engenders the mind that thinks about doing something, the mind stops in that thing. Therefore, one should engender the mind without a place for it to stop [The Unfettered Mind, p. 13-14].

It is of interest to note that swordsmanship as well as Zen Buddhism were affected by Sun Tzu, a great authority of warfare. One of the main ideas embraced was an idea of victory without fighting:

When achieving victory in every battle is not absolute perfection: neutralizing an adversary's forces without battle is absolute perfection [The Art of War, p. 48].

To win without fighting means to save economic and human resources. This strive to conserve resources is also characteristic for modern companies' operations, which are trying to accomplish this task implementing various strategies including restructuring, automatization.

Another example illustrating emphasis on observation and learning is the Japanese problem solving system that is sometimes abbreviated as Ho (hokoku, or report), Ren (renraku, or contact) and So (sodan, or consult). This system encourages not only collective decision-making, mutual trust and cooperation in the group, but also prevents re-occurrence of the problem in the future.

Learning from work experience is perceived as a critical factor in personnel growth in companies. Work experience applies to events connected with employees' attitudes, goals and achievements at work. This experience is gained via reflection on the content of experience, making particular conclusions and their application to subsequent circumstances in the future (Matsuo, M. 2015, 159-160). This scheme exactly reflects the mechanism and steps of attaining satori. In modern conditions companies to improve their managerial systems implement techniques that are aiming at enhancing learning from experience. For instance, on-the-job training (OJT) and coaching. OJT is an effective educational technique, form of training held as one-on-one discussions. The fundamental principles of OJT are: 1) demonstration of perspective duties to the employee; 2) explanation of what and why should be done; 3) allowance of the worker's performance demonstration; 4) check of performance (Rothwell, W. J. 2004, pp. 424-425).

From a practical point of view, educational methods for promoting learning are signified in setting goals and encouraging employees to achieve them, supporting them, appointing duties according to employee's abilities, praising subordinates for their effort and progress. Both managers and subordinates should be interested in coaching or OJT, as far as these techniques contain promotion incentives. In fact, OJT was always rather common for Japanese companies, so far as senior employees did not worry about being skipped over by younger workers due to the concept of seniority promotion (Firkola, P. 2006, p. 119; Sakurada, R. 2015, p. 176).

Furthermore, we can trace a link between a third element of HoRenSo, sodan or consultation, and Zen Buddhist practice sanzen. Sanzen means meditation with consultation. The Zen master addresses the disciple with koan, on which disciple meditates and comes to master for private consultations taking place usually twice a day. During these consultations the master indicates incorrect answers and false conceptions that led to them. Hence, the disciple becomes free from prejudice in his following attempts to comprehend koan.

Existence of this HoRenSo system in Japan is encouraged by maintenance of collective decision-making, and necessity to increase trust in one's decision-making ability.

Methods used by Zen masters to demonstrate a new way of looking at things to their disciples to a large extent reflect peculiarities of Japanese way of doing business. One of them, namely, going beyond the opposites is related to the aspiration to avoid categorization during negotiations that was described above. According to the Indian method of reasoning there are four logical formulas: 1) “It is A”; 2) “It is not-A”; 3) “It is both A and not-A”; 4) “It is neither A nor not-A”. When the person negates or asserts, he becomes a hostage of one of these propositions. However, according to Zen philosophy truth cannot be attained via negation or assertion, hence, Zen always tries to avoid going to extremes (Suzuki D. T. 1913, p. 117-118).

Another method that worth to be mentioned is repetition, to illustrate which we can refer to a dialogue between Hogen Mon-yeki (Fa-yen Wen-i) and one of his disciples:

Hogen Mon-yeki asked his disciple, “What do you understand by this: “Let the difference be even a tenth of an inch, and it will grow as wide as heaven and earth”?” The disciple said, “Let the difference be even a tenth of an inch, and it will grow as wide as heaven and earth.” Hogen, however, told him that such an answer will never do. Said the disciple, “I cannot do otherwise; how do you understand?” The master at once replied, “Let the difference be even a tenth of an inch, and it will grow as wide as heaven and earth” [Ibid, pp. 125-126].

The main aim of such a method is that the sense of words can be comprehended while repeating. This way you affirm reality, which is the final fact of experience. At a certain moment, this reiteration will echo in our mind with the new understanding, giving us a chance of self-awakening (Ibid; Ibid, 1973, p. 34). The same goes when it comes to mastering technique by constant repetition. Here we can refer to the statement made previously in regards of the practical display of satori in the form of obtaining mind's creativity.

Private consultations and directing methods used by Zen masters are as well reflected in coaching and performance appraisal. This practice is a skills-development interaction between the manager and subordinates in the form of one-on-one feedback. Learning abilities might be facilitated by virtue of such approaches as metaphors, analogies and asking questions. Furthermore, core elements of coaching are guidance, facilitation and inspiration. Facilitation means stimulation of creative thinking, while inspiration refers to encouragement of employees to undertake constant challenges. This addresses us to the particular attention paid by Zen to the spirit of creativity and willingness to handle emerging challenges. Performance appraisal, in its turn, is one of the core elements of human resource management, since its results indicate whether an employee should be promoted, demoted, discharged or require additional trainings (Matsuo, M. p. 162; Fukui, N. 2015, pp. 141-142, 150).

Long-term orientation: focus on process not result

I would like to come back to the statement that came up earlier, namely, that there are no spiritual rituals in Zen Buddhism. It can be explained in the following way: according to the Zen doctrine people who perform rituals are more concerned about future rewards despite the fact these ceremonies require efforts and the need to comply with certain rules. This limits freedom and makes a man a hostage of circumstances. Even during meditation, it is important to control mind in order to prevent thoughts related to attaining deliverance or enlightenment as a final result. Meanwhile, Zen wants people to create rules to be followed on their own (Suzuki, D. T.1964, p. 64). Here we can draw parallels to the focus on the process rather than on results that can be traced in several aspects of Japanese business model. For instance, employees should be encouraged by long-term stability and prosperity of their company rather than personal remuneration. In this sense, Japanese companies are ready to accept short-term losses. Furthermore, one of the main characteristics of traditional Japanese management is corporate structure of enterprise. Such companies are focused on long-term growth of the whole corporate group rather than short-term optimization of return of investment from the perspective of core company (Akaoka, I. 2015, p. 87).

Working style.

When in the I century A.D. Buddhism was introduced in China, the first task it managed to accomplish was establishment of self-governing religious community. The distinctive feature of Zen monastery since the very beginning was the principle of complete democracy. Relationships within this institution were characterized by the respect to elders, on the one hand, and equality of all members, on the other hand. This principle of equality was particularly manifested in joint engagement in manual labor. Zen monks were ready to employ themselves in various practical ways of life which indicates the frequency of guidance by economic considerations (Suzuki, D. T. 1973, pp. 3-4).

Therefore, we can identify number of similarities between a way of life in the Meditation Hall (zendo) where Zen educates its monks and the working style in the Japanese offices. Firstly, managers are expected to be economically-minded following the examples of monks. Secondly, it is prevalence of the feeling of brotherhood and harmony between group members. In order to avoid direct confrontation monks should free their mind from desires and aspirations to possess things that are sure to conflict with interests and rights of others. Thirdly, zendo accommodates monks in one room allotting to each of them equal space. Japanese companies are also known for open-space where even kacho (section manager) is sitting in the same room with employees. This scene may be interpreted not only by kacho's desire to control but also as an existence of close and partnership-style relationship between the manager and subordinates. Kacho performs the role of preceptor or tutor guiding subordinates with instructions and advices (Suzuki, D. T. 1964, pp. 121, 128-131).

In the Meditation Hall monks do not receive formal or literary education, they `learn by doing' that refers us to the focus on observation and learning discussed above. Their masters provide them with an environment and instructions that are aimed at enhancing disciples to get rid of their affirmations and egocentric mind. Similarly, the key task for a Japanese manager is to provide the environment in which group can flourish, meeting the expectations prescribed by their status. The main principle, on which this environment is built, is harmony wa, and importance of maintaining it is stressed more than possibilities of promotion and increase in wages.

The concept of the environment is of pivotal importance in Zen Buddhism. It is denoted by the term kyogai. This term comes from the Sanskrit gocara or vishaya or gati, which share practically the same meaning, namely, “the pasture”. As the cattle have their grazing field, man also has a field or realm for his inner life. Specificity of his reactions and reflections towards external factors are determined by the mode of kyogai (Ibid, 1913, p. 249).

3.2 Values of managerial practices of modern Japanese large, medium and small-sized enterprises in the context of Zen Buddhism

Large enterprises account for 0,3% of Japanese companies and 30,3% of employees, while small and medium enterprises (SMEs) constitute 99,7% of all companies and 69,7% of employees accordingly. Large companies predominantly operate in heavy machinery, steel and chemical industries. At the same time, downstream (product processing) and upstream (parts production) segments of large enterprises' production systems are presented by small and medium companies. SMEs are perceived as the basis of Japanese economy and source of its further development, promotion of market competition, new industries creation, technological innovation, entrepreneurial enhancement and economic restructuring. They play a role of supporters of industries and large enterprises, occupying the niche of parts/material/assembly/tools manufacturing and operating as subcontractors providing large corporations with their products' components. Moreover, economies of Japan's provincial areas are to a large extent supported by activities of SMEs that provide employment opportunities and contribute to the development of the local service industry, retail trade and construction industry. Consequently, despite the fact, most of SMEs are not as well-known as Japan's large enterprises, they occupy significant position in the manufacturing and export supply chain. Definition of SMEs varies between countries. This paper uses the definition presented in the Small and Medium sized Enterprise Basic Act and accepted by the Ministry of Economy, Trade and Industry of Japan which based on two quantitive indices (capital and number of employees) (Ono, H. 2014; Japan's policies for…2013; SMEs in Japan…2010; Yamashita, S., pp. 187-188, 192):

Table 4. Definition in the SME Basic Act

Definition in the SME Basic Act
	SME operators
Industry type	Stated capital	Employees
Manufacturing	JPY300 million or less	300 or less
Wholesale	JPY100 million or less	100 or less
Service industry	JPY50 million or less	100 or less
Retail	JPY50 million or less	50 or less

In this paragraph we will analyze if and how Zen Buddhism has influenced formation of the values of managerial practices of modern Japanese companies using examples of 16 large enterprises and 16 SMEs operating in various industries. The results are presented in the below tables:

Table 5. Cases of Large Enterprises

Company	General information	Main principles of business conduct	Business values in the context of Zen
AEON Co., Ltd.	Traces its history since 1758. Operating revenue - JPY8,2 trillion; number of employees - 520 000. Retail and e-commerce.	Basic principles: (1)peace, respect and (2)contribution to local communities always with the customer's point of view. AEON Code of Conduct: act with (3)integrity and sincerity; (4)constant self-challenging to find new ways to accomplish AEON ideals.	(1)(3)Maintenance of human relationships (trust, brotherhood, respect and maintenance of harmony). (2)Self-abandonment and strive to attain the state of egolessness ? commitment to enlighten others and performance of actions guided by interest and concerns of society ? customer orientation. (4)Significance of creativity ? encouragement of employees to undertake constant changes and challenges, thus, transcending ourselves and creating sources of improvement.
Hayashibara Co., Ltd.	Founded in 1883, established in 1932. Capital - JPY7,5 billion; number of employees - 667. Development, manufacturer and sales of food, pharmaceutical, cosmetic.	(1)Always be customer-oriented. (2)Always be a creative challenger.	(1)Self-abandonment and strive to attain the state of egolessness. (2)Significance of creativity.
Hirano Tecseed Co., Ltd.	Established in 1935.Capital - JPY1847 million; number of employees - 250. Production and sales of industrial machinery and machinery parts.	(1)Improvement of business activities and products/ services' quality while (2)protecting the environment. (3)Striving for creative capacity.	(1)(3)Significance of creativity. (2)Fûryû.
Hub Co., Ltd.	Established in 1998. Capital - JPY631 million; number of employees (consolidated) - 617. British pub business.	(1)Openness, honesty, fairness, impartiality. Constant (2)improvement in management ((3)free discussions, sharing of ideas, immediate actions).	(1)Maintenance of human relationships. (2)Significance of creativity. (3)Dialogue of Zen master and his disciple aiming at specifying the path of disciple's spiritual development.
ITOCHU Corporation	Founded in 1858. Common stock - JPY253, 448 million; number of employees - 4 381. Wholesale.	Values facilitating ongoing (1)development prescribed in the Corporate Code of Conduct: visionary (clear image of desired result and an ability to share this vision with colleagues, (2)enhancing them to achieve desired future); (3)integrity (work in compliance with personal and professional standards and values and (4)interact constantly with everyone); diversity; passion (focus on current issues with strong (5)will and motivation to overcome all arising obstacles) and (6)challenge (readiness to (7)undertake new projects and pioneer the future with (8)creativity). Possibility to change direction. (9)Contribution to the creation of a sustainable society. Enduring of business over the (10)long term. (11)Measures to protect environment. (12)Constant improvement of new technology and knowledge. Maintenance of (13)trust reflected in words and actions: we (14)think about what is right and act accordingly. Practice (15)self-discipline.	(1)(6)(8)(12)Significance of creativity. (2)Role of Zen master in encouraging subordinates' understanding of goals and develop independent thought and achieve results on their own ? professional skills of managers. (3)(4)(13)Maintenance of human relationships. (5)Zen as a religion of will. (7)Significance of circumstances and affirmation of inconstant nature of reality ? particular role of flexibility. (9)Self-abandonment and strive to attain the state of egolessness. (10)Focus on process rather than result ? long-term orientation. (11)Fûryû ? respect toward nature and tender care of it. (14)The Eightfold Path of Righteous living ? right thought, right understanding and right actions. (15)One's own state of mind is less significant than the state of society ? self-control and self-discipline.
Komatsu Ltd.	Established in 1921. Net sales (consolidated) - JPY1,802 billion; number of employees (consolidated) - 47 204. Machinery.	(1)Think about the needs of customers and employees' safe and comfortable work environment. Pursue (2)innovation of technology and management. (3)Contribution to the welfare of community. Maintaining of (4)honesty, integrity, trust and harmonious relations. (5)Environmental protection as a high priority. (6)Trainings aiming at enhancing skills and abilities. Improvement and maintenance of (7)transparency, (8)soundness and efficiency of management.	(1)(3)Self-abandonment and strive to attain the state of egolessness. (2)Significance of creativity. (4)Maintenance of human relationships. (5)Fûryû. (6)Emphasis on observation and learning ? trainings. (7)Significance of transparency as a state of Mind and reflection of sabi. (8)The Eightfold Path of Righteous living.
Marubeni Corporation	Founded in 1858. Paid-in capital ? JPY262 billion; number of employees - 4458. Wholesale.	Marubeni Management Philosophy: spirit of (1)fairness, (2)innovation and (3)harmony; (4)willpower to shape the future; relish the (5)challenge.	(1)(3)Maintenance of human relationships. (2)(5)Significance of creativity. (4)Zen as a religion of will.
Micronics Japan Co., Ltd.	Established in 1970. Paid-in capital - JPY5,018 million; number of employees - 930. Development, manufacturing and sales of semiconductor testing units.	Management policy: (1)self-realization of employees by means of creative corporate culture. (2)Not to be bound by past experience, common knowledge or conventional ideas. Significance of (3)right decisions and right actions determined by morality and ethics. Value of three kan's, which are defined as observation, impression and imagination. (4)Careful observation and excitement obtained by observation drive intuition and lead to self-improvement.	(1)Significance of creativity. (2)According to Zen, the main reason of our suffering are attachments, hence, we should strive to get free from various attachments, including ones related to your past or words (teachings/concepts). (3)The Eightfold Path of Righteous living. (4)According to Zen, enlightenment can be gained only via immediate and direct intuitive understanding of reality.
Mitsubishi Corporation	Founded in 1954. Capital ? JPY204 billion; number of employees (consolidated) - 77164. Wholesale.	Three corporate principles: corporate (1)responsibility to society (material and spiritual enrichment of society and (2)preservation of the global environment); integrity and fairness (maintenance of (3)transparency, (4)integrity and openness); global understanding through business (expanding business in accordance with lows and regulations). Aim of Corporate Business Activities is to (5)enrich society, developing and offering best services and products. Improvement of corporate strengths through the (6)development of employees, respecting their individuality. (7)Trainings for mid-careers and graduates.	(1)(5)Self-abandonment and strive to attain the state of egolessness ? actions guided by interest of society; and ? client-oriented approach. (2)Fûryû. (3)Significance of transparency as a state of Mind and reflection of sabi. (6)Individual approach of Zen master towards his disciples, aiming at their spiritual development ? manager takes into account personal abilities and character of subordinates striving to encourage their skills development. (4)Maintenance of human relationships. (7)Emphasis on observation and learning ? trainings.
Mitsui & Co.	Founded in 1947. Common stock ? JPY341 billion, number of employees (consolidated) - 42 316. Wholesale.	Values include building (1)trust with fairness and humility; maintenance of open-mindedness and (3)strive to develop others and oneself (4)to achieve full potential. Aspire to contribute to society. Embracement of (5)challenge of continuous innovation.	(1)Maintenance of human relationships. (2)Focus on process rather than result ? long-term orientation. (3)Self-abandonment and strive to attain the state of egolessness. (4)(5)Significance of creativity.
Nagase & Co., Ltd.	Founded in 1832, established in 1917. Paid-in capital ? JPY9,699 billion; number of employees (consolidated) - 6241. Chemical trading firm.	(1)Customer orientation, (2)Always be a creative challenger.	(1)Maintenance of human relationships. (2)Significance of creativity.
OMRON Corporation	Founded in 1933. Capital - JPY64 billion; number of employees - 36 193. Wholesale.	Mission is to improve lives and (1)contribute to a batter society with (2)innovations, product and services driven by social needs and social issues. Upholding values include (3)constant challenging, (4)respect for all and strive to act with (5)integrity, creating strong (6)relationships of trust with individuals and society. Management philosophy: (7)long-term vision.	(1)Self-abandonment and strive to attain the state of egolessness. (2)(3)Significance of creativity. (4)(5)(6)Maintenance of human relationships. (7)Focus on process.
Persol Tempstaff Co., Ltd.	Established in 1973. Capital - JPY2,273 million; number of employees (consolidated) - 32 654. Staffing services.	Five principles of actions: sincerity (respond every issue sincerely); (1)customer-oriented; professionalism; (2)teamwork; (3)challenge and innovation: think, act and joy in (4)changing.	(1)Self-abandonment and strive to attain the state of egolessness. (2)Organization of the working process in the Zen monastery (brotherhood) and maintenance of human relations. (3)Significance of creativity. (4)Significance of circumstances and affirmation of inconstant nature of reality.
Rakuten	Founded in 1997. Revenue (2016) - JPY781,9 billion; number of employees (consolidated) - 14 845. E-commerce.	In order to make future better (1)right mind-set is required. Mission: (2)enrich and contribute to society providing high-quality services and embracing (3)new thinking and creating value through innovation. Accomplishment of goals by means of (4)creativity. The Rakuten Group Code of Ethics: (5)respect all people; (6)put ourselves in customers' shoes; work to increase (7)transparency. Brand Concepts: mission of work is (8)empowerment that should be attained with (10)integrity, honesty, and sincerity; adjustment of plans if (11)circumstances change. Five Principles for Success: (12)constant improvement and advancement that can be obtained only via (13)self-discipline.	(1)The Eightfold Path of Righteous living. (2)(6)Self-abandonment and strive to attain the state of egolessness. (3)(4)(8)(12)Significance of creativity. (5)(10)Maintenance of human relationships. (7)Significance of transparency as a state of Mind and reflection of sabi. (11)Significance of circumstances. (13)One's own state of mind is less significant than the state of society ? self-control and self-discipline.
Seven & I Holdings	Established in 2005. Capital - JPY50 billion; number of employees (consolidated) - 54 488. Retail and e-commerce.	(1)Trust of employees, customers and business partners. (2)Provide customers with safe, high-quality, reliable, superior products and services to meet their expectations. Looking through the eyes of customers. (3)Environmental protection (non-wasteful usage of energy). (4)Dialogue with business partners for sustainable growth and increase of (5)long-term corporate value. Their slogan: “(6)Responding to change while strengthening fundamentals”. (7)Training systems for each job position, aiming at developing and acquiring the (8)flexible thinking and self-improvement.	(1)Maintenance of human relationships. (2)Self-abandonment and strive to attain the state of egolessness ? actions guided by interest of society; and ? client-oriented approach. (3)Fûryû. (4)Dialogue of Zen master and his disciple aiming at specifying the path of disciple's spiritual development. (5)Focus on process. (6)(8)Significance of creativity and circumstances. (7)Emphasis on observation and learning ? trainings
Sumitomo Corporation	Established in 1919. Paid-in capital - JPY219,3 billion; number of employees (consolidated) ? 72000. “Founder's precepts” of Masatomo Sumitomo serve as foundations of Sumitomo's Business Philosophy.	Importance of (1)honesty, (2)prudence and sound management. Sumitomo Corporation Group's Corporate Mission Statement consists of Management Principles and Activity Guidelines. Its mission to (3)support everyone in their strive to achieve economic and spiritual prosperity. Unique management style that highlights importance of (4)integrity and sound management and encourage employees to take initiative and perform (5)creativity that is conducive to continuous (6)innovation. Activity Guidelines: significance of (7)transparency and openness; (8) environmental protection; (9)contribution to society; (10) building of active communication and teamwork. Significance of foresight and (11)flexibility as means to cope with changing times. Attitude of viewing business from the broad and 12)long-term perspective.	(1)(4)Maintenance of human relationships. (2)The Eightfold Path of Righteous living. (3)(9)(10)Self-abandonment and strive to attain the state of egolessness. (5)(6)Significance of creativity. (7)Significance of transparency as a state of Mind and reflection of sabi (8)Fûryû. (11)Significance of circumstances and affirmation of inconstant nature of reality. (12)Focus on process.

Table 6. Cases of Small and Medium Enterprises

Company	General information	Main principles of business conduct	Business values in the context of Zen
Fujii Denco Co., Ltd.	Established in 1951. Capital - JPY250 million; number of employees - 340. Safety instruments and equipments.	No values and corporate business principles on the website.
Gramolux Co., Ltd.	Established in 1985. Capital stock - JPY10 million; number of employees - 230. Retail of electronics and private brand product business.	No values and corporate business principles on the website.
Hinode Co., Ltd.	Founded in 1957. Capital - JPY24 million; number of employees - 70. Manufacturing and sales of synthetic resin molding and plastic products.	(1)Principle of co-existence. (2)Customer-oriented. (3)Strive for quality improvement.	(1)Organization of the working process in the Zen monastery (brotherhood). (2)Self-abandonment and strive to attain the state of egolessness. ...

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