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Taoism (or Daoism) is one of two major Chinese philosophies of life and stems from the writings of Lao Tzu. Rooted in living a life characterized by balance and harmony, Taoism focuses on the significance of the individual life, spontaneity, and being tranquil. Confucianism, the dominant philosophical system throughout much of Chinese history, focuses on society. It promotes the value of social order, responsibility, and being active. On the surface these two wisdom traditions appear to be contradictory, but in actuality they are complementary. Both have greatly shaped Chinese civilization and its social structure, family traditions, and business culture and practices.

During the latter part of the 20th century, Taoist and Buddhist thought became a popular alternative to Western religious traditions that were seen as rigid and constraining. They provided a personal spiritual approach to life and self-development that was liberating and not rule based. Over time, Taoist thought also influenced business concepts, particularly management, leadership, and mentoring. Some even used it in understanding organizational behavior and business forecasting. With the notion of globalization being the foundation for many 21st-century business strategies and marketing efforts, understanding and respecting Taoism and its ethical principles is important for developing effective working relationships with business professionals in China and other parts of the East.

Background

Lao Tzu, the attributed author of the Tao Te Ching and the founder of Taoism, is considered to be a contemporary of Confucius (551–479 BCE). While some say that he was born in 604 BCE, little is known about him. It is uncertain if he was a historical person or merely the preeminent “Grand Old Master,” as his name implies. Unlike other major Chinese thinkers such as Confucius and Buddha, Lao Tzu was not a preacher nor an active organizer or promoter of a social or spiritual tradition.

The Tao Te Ching (The Way and Its Power) is one of the central writings of Taoist philosophy. It is a mere 81 chapters—short poetic sayings and proverbs—reflecting on how people can become one with the Way of the universe (Tao) and live a harmonious life. Legend holds that Lao Tzu, a well-respected sage, when leaving to live in Tibet, jotted down a few pages recounting his thoughts on the request of a gatekeeper at the Hanko Pass. These pages became known as the Tao Te Ching and have been used by both rulers and common folk. The text in its present form, though, is the work of several individuals.

The other core Taoist writing is Chuang-tzu, written by Chuang Chou around 300 BCE. Chuang Chou was a Taoist scholar sought out by the king to be his adviser. He declined, choosing not to serve any specific ruler. He focused on spiritual and social liberty, encouraging people to seek freedom from all forms of tyranny and oppression, even death.

Today, Taoism has three primary forms: philosophical, religious, and programmatic arts to vitalize the human person. Philosophical Taoism is concerned with maximizing te, or power, by conserving it, while the programmatic arts seek to expand its quantity. The former promotes thoughtful reflection to preserve power. The latter strives to energize human beings by using herbs and movement (e.g., the practice of t'ai chichuan), as well as breathing exercises and yoga to increase or unblock ch'i, the essential and vital energy that flows through human beings. Religious or Church Taoism helps individuals deal with life issues, illness, and daily problems by invoking deities and accessing their power by performing various rituals.

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