The paper presented highlights the fact that the fundamental ideas of Chinese philosophers from the 6th century BC, when society, economy, technology, and law were very different, can be applied to today's corporate setting.
Drawing on the central aspects of righteousness and honesty, I argue that a corporate culture influenced by Confucianism reduces the occurrence of corporate fraud. Righteousness and honesty define an executive’s morally permissible actions, making an action that is inconsistent with stakeholder interests less likely. By focusing on such intangible factors, the understanding of good corporate governance is put in a new light.