What did he learn from Confucius about doing business?

Zigong, a native of the state of Wei, with the compound surname Duanmu, the name Chi, and the character Zi Gong, was one of the ten most unusual disciples of Confucius. He was an all-rounder, a well-educated Confucian scholar, an outstanding politician, a diplomat who crossed the world, and a successful businessman who was rich beyond his means. Zi Gong was the first Confucian merchant in Chinese history and is regarded as the progenitor of Confucian business.

Zi Gong also served as the minister of Lu and Wei. When Zi Gong, who was also a Confucian merchant and an official as well as a businessman, interacted with the rulers of the states, he rode in a high carriage with a team of horses, which was very grand, and carried generous gifts to the vassals, and everywhere he went, the rulers treated him with respect, and they only treated him as a guest and a host, not as a ruler and a subject.

Zi Gong had the advantage and talent of doing business

Zi Gong was the favorite student of Confucius, he was quick and lively, eloquent, witty and eloquent, and well-traveled, so he had an innate advantage in doing business.

In addition, Zi Gong’s hometown was Chaoge, the capital of the Yin merchants for four generations, which had a strong commercial atmosphere, and he himself was born in a merchant family and had a great talent for doing business. Zi Gong believed that if you have beautiful jade in the cabinet, you should sell it when the price is right, rather than storing it forever. He believed that the price of goods depended on supply and demand, and put forward the theory that “things are precious because they are rare”.

Traveling around the world is also a business trip

According to legend, Zi Gong studied under Confucius at the age of 17 and inherited the family business in his twenties. When he traveled around the world with Confucius, he was also engaged in business. He paid attention to the internal affairs and diplomacy, local customs and market conditions of each country, and made a lot of profit from the changes in orders and market supply and demand.

For example, one winter, Zi Gong learned that Wu would send an expedition to Qi. He was sure that King Fucha of Wu would collect silk and linen for the army to protect them from the cold, which would cause a shortage of silk and linen among the people, so he hurriedly arranged manpower to buy it from various places in Lu and then transported it to Wu. At that time, the people of Wu were dressed in thin clothes and were suffering from the cold. When Zi Gong’s silk and cotton arrived, they were immediately snapped up and Zi Gong made a fortune.

Confucius said to Zi Gong, “He did not give orders, but made goods and products, and his guesses were repeatedly successful”, meaning that Zi Gong did not want to be a government official but to do business, and he could accurately predict the market every time.

It is written in “The Records of the Grand Historian” that Zi Gong studied with Confucius and left to become an official in the state of Wei, and then did business between the states of Cao and Lu.

What did Zigong learn from Confucius?

If Zi Gong had not studied with Confucius, with his talent, I believe he would have been a good businessman, but certainly would not have achieved so much. So what key did Confucius teach him that made him so outstanding and successful?

In The Analects of Confucius, it is recorded that Confucius answered questions with his disciples, among which Zigong had the most conversations with Confucius. Zigong was good at learning from questions, and he gave examples and went deeper step by step, so that Confucius had the opportunity to give explanations on many levels. The brilliant repartee between the two men shone everywhere with the luster of wisdom, which benefited future generations.

Zi Gong once asked Confucius how to govern the country. Confucius replied, “Adequate food, adequate armaments, and winning the trust of the people, that is all.”

Zi Gong asked, “If one item has to be removed, which of these three should be removed first?”

Confucius replied, “Remove the armaments.”

Tzu Kung asked, “If one more item has to be removed, which of these two items should be removed?”

Confucius replied, “Remove the grain; since ancient times people eventually die, and if there is no trust of the people, then the state will not stand.”

As in the case of governing a country, Zigong realized that in business too, “faith” is the most important thing.

Confucius said, “A gentleman is a metaphor for righteousness, but a villain is a metaphor for profit.” It means that a gentleman knows morality and righteousness, while a small man knows profit.

Confucius advocated that “a gentleman loves money and takes it in the right way”.

Zigong had a lot of merits, but he also had shortcomings. Therefore, in the Analects, Confucius reminded him three times to “forgive”.

For Zigong, Confucianism was a true code of conduct that was integrated into his heart and guided his actions. He treated people with courtesy, kept his word, valued his reputation, never harmed others and benefited himself, provided trustworthy goods, and made moderate profits.

The Moral Realm of a Rich Man

Zi Gong, who had become very rich, probably realized the influence of money on people, and asked Confucius another important question: “What is it like to be poor without flattery and rich without pride?” Meaning, is it enough for a person to be poor but not flattering and rich but not arrogant?

Confucius then raised further expectations of him, saying, “It is still possible, but it is better to be poor and happy, and rich and know manners.”

Zi Gong again had an enlightenment and asked again if it was true that just like constantly polishing a jade stone, a gentleman should also constantly improve his moral state. Seeing that he had such enlightenment, Confucius was pleased and said, “In that case, I can talk to you about the Book of Songs!”

Some people think that Zi Gong was very successful in his studies, politics and business, and he was a model among Confucius’ disciples in applying what he had learned, and his actions, just like “proving the way by his body”, proved the essence of Confucianism’s “benevolence” to all aspects of being a man, governing and doing business. The practical guidance of Confucianism

Frankly speaking, if a businessman can truly understand and practice the five Confucian principles of “benevolence, righteousness, propriety, wisdom and faith”, and continuously improve his moral state like polishing a jade stone, how can such a businessman not be respected and trusted, and how can he not be successful? Therefore, later people praised the honest merchants who could follow the example of Zi Gong as “Duanmu’s legacy”.