Confucius Says: Perhaps Microsoft and Nvidia Don’t Have All the Answers

Today’s leaders have no shortage of management wisdom to tap — from Satya Nadella’s playbook for revitalizing Microsoft to Jensen Huang’s blueprint for turning Nvidia into the engine of the AI era. Yet there’s another sage who deserves a seat at the strategy table: Confucius.

China’s most famous philosopher, who lived more than 2,500 years ago, espoused many ideals that are highly relevant to leadership today.

“It’s my strong belief — and lifelong pursuit — that ancient Chinese philosophy is invaluable for leadership, especially at this time when the world is so divided, disrupted and turbulent,” says Ming-Jer Chen, the Leslie E. Grayson Professor of Business Administration at the University of Virginia’s Darden School of Business.

A renowned expert in strategic management, Chen is a pioneer in the fields of competitive dynamics and ambicultural management. His second-year strategy electives — such as “East-West Strategy” — are rooted in Confucian teachings, which emphasize moral character, the importance of family and education, and the virtues of loyalty and respect for humanity.

In a new technical note, “Confucian Thinking for Global Leaders: A Primer to the Timeless Wisdom of the Analects,” Chen and co-author Alex Radovanovic (MBA ’24) introduce students to four central concepts, or building blocks, of Confucian thought — li, junzi, ren, and yi —which prompt leaders to think beyond technical skills, focusing instead on character and moral responsibility. More on these below.

Why Confucius in a Business School?

At first glance, a course on Confucian philosophy might appear out of place among finance models and strategy frameworks. But Chen and Radovanovic argue otherwise: The Analects — a collection of Confucius’s ideas and sayings — “provides a timeless perspective on cultivating the essential qualities of a leader,” they write.

Confucius (551–479 BCE), known in China as Kong Fuzi (or “Master Kong”), was a teacher and aspiring politician whose beliefs stressed the principles of education, benevolence, righteousness, good conduct, and moral character.

Over the centuries, Confucian principles have undergirded Chinese culture. Indeed, his ideas have shaped societies across East Asia, leaving their mark on everything from political institutions to the fabric of daily life.

At business schools, Chen and Radovanovic write, these ancient virtues perfectly complement “objectives such as instilling ethical leadership, fostering relationships, improving organizational design, and enhancing cross-cultural understanding in a globalized business environment.”

The Four Pillars of Confucian Leadership

The technical note organizes Confucian thought around four core ideas — encompassing the importance of ritual propriety, righteousness, benevolence, and a person of good character. Each one may inspire business leaders striving to build organizations on character and competence.

Li: “Emulate What Is Good”

Chen and Radovanovic explain that li “transcends etiquette and accepted behavior to encompass the network of propriety, rituals, customs, and norms that, together, guide individuals in their actions.”

The rituals, they add, express values such as respect and harmony.

Li also incorporates the importance of fulfilling duties and obligations within a broader community. Confucius believed citizens had a mandate to participate in public life  — with the caveat that they do so in an ethical and moral manner.

Junzi: “When the Wind Blows, Grass Will Surely Bend”

While li is about conduct, junzi, or “exemplary person,” embodies character and behavior — the realized expression of a life guided by principle.

Confucius described the junzi this way:

“A gentleman when he eats doesn’t try to stuff himself, when he chooses a dwelling is not overly concerned about comfort. He is attentive to affairs, careful of his words, and looks to those who have the Way to correct himself. He’s the kind who can be called a lover of learning.”

Ren: “Devotion to Goodness”

If junzi is the goal, ren is its highest expression. Confucius challenged his followers:

“Is there a person who can, for the space of a single day, simply devote his efforts to Goodness? I have never met anyone whose strength was sufficient for this task.”

Chen and Radovanovic note that ren is “the aspirational attainment of the highest order of benevolence or morality” — a north star guiding leaders as they navigate imperfect choices.

Yi: Moral Compass

Finally comes yi, the innate drive of a junzi to do good. As Confucius wrote:

“A wise man never for one single moment in his life loses sight of a moral life; in moments of haste and hurry, as in moments of danger and peril, he always clings to it.”

Chen and Radovanovic describe yi as “an internal moral compass that guides an individual toward the fulfillment of li and the pursuit of ren.”

Applying the Four Virtues

Scenario: A project deadline is approaching, and two team members are in conflict — one feels overworked, the other feels unappreciated. The tension is hurting morale and slowing progress.

Li  (propriety; cultural, ritual norms and behavior): The leader clearly explains the “why” of her decision to rebalance the workload and to equally acknowledge the work of both; she also explains how her decision fits with the company’s culture of fair treatment.

Junzi (exemplary person, models principled leadership and ethical wisdom): The manager concludes the meeting by assuring the team members that she will check in with them throughout the project to ensure their concerns are allayed and that the success of the project will be recognized as the result of the team, not of one individual or the leader.

Ren (humane with accountability): The project leader listens empathetically to both team members, demonstrating genuine concern about their well-being and respective interests, rather than taking sides with one or the other, or assigning “blame.” She asks both members to contribute their thoughts on how she can help balance workloads and recognize them both.

Yi (righteousness, right course of action; parallels propriety): The manager makes a fair decision, agreed upon by the team members, to redistribute tasks based on what’s ethically right for the team and organization, rather than on personal loyalty, favoritism, or convenience.

“Power of One”

Chen has spent years weaving Confucian thought into his teaching on strategy and management.

The Class of 2023 launched the first independent study focused on reading, interpreting and discussing Confucius’s works; the Class of 2024 expanded it further.

Chen often returns to what he calls the “power of one” — a principle he draws directly from Confucius:

“In all my life and teaching there is one underlying connected principle … [It] is comprised in the two words: conscientiousness and charity.”

Broadly applicable in business and in life, “the ‘power of one ’ is the essence — the values, competencies, even relationships — at our center. [It] allows strategists to crystallize what is important, make coherent decisions, and articulate a unifying theme to integrate their activities,” Chen wrote in the Washington Post.

This concept is at the core of Chen’s philosophy and is referenced in nearly all his courses. And it is an idea that leaders can use to guide all facets of their lives,” write Chen and Radovanovic. “[It] may be thought of as the singular focus that drives decision-making in both our career and our personal lives.”

For leaders, finding their “one” provides a unifying lens for strategy. As the note explains: “By identifying their ‘one,’ a leader gains a guiding principle for managerial decisions, leadership actions and future directions, in business and in life.”

Confucius may have lived millennia ago, but as Chen reminds us, his lessons are as relevant in boardrooms today as in ancient courts.

Professor Ming-Jer Chen is co-author of the technical note, “Confucian Thinking for Global Leaders: A Primer to the Timeless Wisdom of the Analects,” with Alex Radovanovic (MBA ’24), published by Darden Business Publishing in May 2025. He is also co-author of “Module Introduction: From Ancient Chinese Wisdom to Contemporary Competitive Dynamics,” with Taylor Chorazyczewski (MBA ’25) and Kristin Samit (MBA ’25), published in August 2025.