a buddhist economic approach to a business firm: a case study

8/22/2019 A Buddhist Economic Approach to a Business Firm: a Case Study

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A Buddhist Economic Approach to a Business Firm: a Case Study

Wanna Prayukvong*

Abstract

Buddhist Economics differs significantly from Neo-classical economics in its emphasis on

treating the human beings in the workforce with compassionate wisdom. This article shows the

application of Buddhist economics approach in a Buddhist country. It uses the case study of a

business firm in Thailand, created by an entrepreneur who embraces Buddhist practice and

adopts the role of a good friend (Kalayanamitt) to arrange the social environment within the

organization to embed the core values of compassion and co-operation. By arranging a

compassionate physical environment, remuneration, welfare, passionate communication and

routine activity with respect to Buddhist culture and social involvement and setting a non-

traditional rule and regulation as mechanism connect all employees which are are integrated

into the life skill training system for training their mind to seeing the truth from the wisdom in the

Threefold Training. This may offer some valuable pointers for organizations in the West wishing

to introduce more sustainable practices into business.

Key words: Buddhist economics Business Practice Good friend Compassion Co-

operation Thailand

*

Arsomsilp Insti tue of Art , Thailand, E-mail: [email protected]


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Introduction

There is undeniably crisis in economic, environmental and social conditions throughout

the world. Economic issues on the disparity between growth and distribution have not been

resolved and have created various effects. Issues of pollution, extinction of species, global

warming, and the decrease of non-renewable natural resources are a source of environmental

concern. There has been a marked increase in racial conflict, as well as divisive tension at

national levels and a lack of tolerance among the major religions leading to terrorist activities in

major cities around the world. Compounding, and perhaps resulting from these issues are

increases in stress, and mental health problems, with a growing suicide rate (especially in the

western countries) together with an increasing number of single parent families, divorce and

general breakdown of family life (UNDP, 2006).

This said situation is replicated throughout the world, as globalization has amplified that

economic and social institutions are part of an interdependent system. The effects of the

economic crisis in-mid 2008 have not only spread rapidly across the globe but also become

more deeply complex. Although the credit crunch in the financial market is blamed as a major

cause of this crisis, it is simply an obvious one at surface level. There is undeniable evidence

that many corporations and their managers have paid inadequate attention to many

stakeholders such as employees, customers, suppliers, the communities and the environment

and these are major issues.

Throughout the globe, there is a call for a radical change in the way in which we

conduct business. There have been many movements at the global level to resolve these

problems such as UN and OECD. In the report from the World Economic Forum 2009 the

following call for action was raised: It is time to rethink the old systems and have a

fundamental rebooting of the educational process. The influential management researcher,

Gary Hamel (2009) calls for a retraining of managerial minds while The Globally Responsive

Leadership Initiative calls for a profound change in individual mindsets and behavior, as well as

corporate culture.

Many of the implications of Corporate Social Responsibility (CSR) and Corporate

Citizens (CC) are contested, and there is still a great deal of exploration of the relationship

between corporate social responsibility and sustainability. However it is clear that both CSR and

CC are both concerned with the necessity for virtue or ethical values in business. According to

Dion (2001: 134-135) CSR and CC is an opportunity to become more deeply aware of our


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perceptions of ourselves so that our paradigmatic beliefs about reality are challenged and we

can develop a more compassionate relationship with others.

So there is a call for new management practices which re-integrate ethical humanist,

religious and spiritual values into workplace. There is one school of thought and practice which

is beginning to make its voice heard in economics, and that is the ancient wisdom tradition of

Buddhism. Buddhism has an entirely different ontological and epistemological basis from other

religions. It can be thought of essentially as a pragmatic approach to life and how we organize

ourselves, based on cultivating the core values of compassion and co-operation. In this

understanding, the human being is not considered to be an entirely rational, self-interested

animal, but a person who can also act disinterestedly from collective, shared values.

Whilst the language and practices of managerial discourse for such new management

practices have been carried throughout the world, the culture and conditions in which these

practices may be implemented differ enormously and sometimes are not present. Buddhism

has been established in Thailand for a long time and most Thai people are Buddhist. Buddhism

has considerable influence over many aspects of their lives. However, it seems that while it

enriches their personal life it is separated from their career. As a result of globally institutional

structures, culture and conditions of business practice which pursue the old ideas of self-

interest, people in Thailand do not automatically link business practice with their traditional way

of living.

At present, there are some businesses in Thailand and foreign countries which have

implemented projects concerned with the development of individuals. Examples are employee

volunteer programs which offer a chance for people in an organization to do good things for

society (Prayukvong, 2007) and meditation training courses which people are allowed to attend

during working hours (Duerr, 2004). There are also some owners of Thai companies which

have adopted Buddhist economics into their business management. So, this study examined

whether and how successfully businesses in Thailand are able to apply Buddhist economics in

their organizations. This study may extent the knowledge of this theory in a business context

and may prove useful to the West in terms of both the analysis and practice of developing

sustainable business.

This article begins with a brief analysis of how Buddhist economics may differ from

mainstream economics, and then we examine the case of one business organization in

Thailand which has applied Buddhist economics in business management.


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A Framework for Buddhist Economics

Buddhist economics is an application of some of the principles of the Buddhas insights

and teachings to modern economics. The teaching of the Buddha, known as Buddha Dhamma,

is neither a religion nor a philosophy in the Western sense because it does not offer a set of

beliefs and it does not teach a faith or require any conceptual belief unless it has personally

verified by the self (Puntasen, 2005). Buddhist ethics are not some abstract concept of

promising to be good so there is no promise of reward at some time in the future or a

mysterious code of behavior we have to follow to belong to a secret club, but a way of living

which accepts and complies with the reality of nature as ascertained by the Buddha

(Prayukvong, 2005).

The major difference between Buddhist economics and Mainstream Economics is that

of the view of human nature. Mainstream economics views the human being as an economic

man who is rational; he knows his own interests and what to choose from a variety of means

to maximize his self-interests. The ultimate goal of Mainstream Economics is to allocate limited

resources to maximize self-interest. It focuses on utility or welfare under unlimited demand and

other constraints. Rational behavior is a major assumption behind the mainstream economic

theory.

Mainstream Economics also adopts the idea of the survival of the fittest, which applied

Darwinian Theory of natural selection to imply that competition leads to progress. Hence, the

core value of mainstream economics (more popularly known as capitalism) is self-interest and

competition. Mainstream economics defines the pursuit of self-interest as a rational behavior as

it is the behavior (Rocha & Ghoshal, 2006) that contributes to more generation of utility. Pure

competition is an ideal which does not exist in the real world (Friedman, 1962).

Accordingly, one of the most important objectives of business firms is to maximize their own

interest or profit. The quality of life or well-being of society is usually ignored by business firms.

For example, they can produce negative externalities in term of costs to society and

environment transgressions. Although the call for corporate citizenship (CC) or corporate social

responsibility (CSR) is more frequent, the understanding, the necessary practices and it

ultimate goals are not yet clear as the paradigm of self-interest has still not been shifted.

Moreover, virtue or ethical values are criticized in each case of the contested meaning and

scope of the term CC or CSR (Dion, 2001). Since the market and government mechanisms

which aim to control greed, are not actually working and practical, some business firms still

consider their own interest as their first priority and leave society second. This short-term


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interest means that many firms are unaware of the impact of their actions on society, often

leading to unsustainable practices.

When the Buddha Dhamma is applied to economics, a different understanding of

human nature emerges. The Buddhas major insight was to see the interdependence of all

things and the mutual interaction between causes and effects. The existence of anything in the

present results from earlier factors and may be its original cause. Nothing can exist on its own.

This is what is called the principle of Dependant Origination (Idappaccayata). Everything is said

to be influenced by the condition of something else. This is not the linear Newtonian approach

but leads to an understanding of the interdependence and interconnectedness of all caused

and conditioned things. Here then, the meaning of self is wider than just the individual, and

includes both society and nature. The existence of each human being or self has three

components -- human, society and nature, which are correlated, coordinated and

complemented by each other within the ecosystem (Payutto, 1999). Thus, self-interest in

Buddhist economics has a broader meaning, which includes not only oneself but also others in

society and nature. When people clearly understand these interconnected relationships, then

co-operation should become more natural and smooth.

We can identify two types of co-operation (1) Cooperation that is based on shared

values and desire to fulfill the basic needs and achieve a good life together, and 2) pseudo

cooperation which preserves the competition concept as a pool-incentive (Payutto, 1994). This

implies that a group or even a whole company put all of their co-operative efforts into

competing with other groups or companies, with the common target of achieving a better

income for the group. Compassion and true cooperation are the core value in Buddhist

economics instead of self-interest and competition. The interesting point of study explored here

is, whether or how this type of co-operation is a possibility, building trust or bonds between

people in an organization. I use a case study in a Buddhist country as an example.

Whilst on the one hand, it is intellectually easy to understand the interdependence and

mutual interaction between causes and effects, it is also deeply profound, and requires both an

emotional and intellectual response. According to the Buddha, all humans are born in

ignorance and fail to see deeply enough into the conditioned nature of existence. Buddhist

practice is about developing a clean and calm mind with neutrality to understand such

complexity. One way of achieving this is through the practice of the threefold path. To begin

with, people need to practice good conduct through ethics (sil), to achieve a calm mind


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through concentration (samdhi)and develop their wisdom (paa). These are not separate

processes but interconnected as in spiral dynamics.

Whilst it is within the grasp of everyone to reach this clarity, it is only attained through

diligent practice. Ethics in Buddhism is not a list of morals, but rather a state of mind. Actions

are judged depending on whether they are skilful or unskillful. The more skilful the action, the

greater the development of wisdom in the sense of an understanding of interconnectedness,

and meditation provides a training ground for the development of skilful action.

So what Buddhism offers is a method for developing greater and greater clarity of mind,

through working proactively with ones emotional state. There are some scientific tests such as

EEG scans on the brain by Davidson and his colleagues (2003), to observe the heart rates and

hormonal balance of people who practice meditation, but this is not direct observation and only

provides consequential evidence of positive emotions. This study illustrates the crucial fact that

people can train their own feelings. Goleman (1998) elaborated that emotional and social

intelligence and positive thinking are necessarily conducive to help people manage and train

their feelings. Layard (2005) mentions that the teaching of almost all religions is less explicit

than that of Buddhism about the management of ones emotions.

The motivation to practice arises, not from proof, or evidence, but from an ever-

increasing and deepening sense of the realization of interdependence and interconnectedness

from practice; one sees that by practice one also helps oneself, and benefits others at the

same time. Of course, this is inherent in many religious traditions and Starkey and others

(2001) show that adopting an altruistic life, such as doing a regular volunteer work, is a crucial

component to maintaining good health and gives people more satisfaction than that which

may be obtained from material consumption (Prayukvong, 2007).

During the practice of morality or good conduct (sil), the practices of training calm

mind (samdhi), the practices of developing wisdom (paa) simultaneously, one can develop

to generate understanding that peace and tranquility (sukkha) is attainable and that this

understanding in attaining this mindfulness is opposite to pain and suffering (dukkha). This

Threefold Training is a spiral dynamic of the feeding back loop of three parts. The process of

Threefold Training does not only benefit personal practice but also human activities at the

community and social level. Thus, an organization based on Buddhist principles, should reflect

this spiral training through the institutional structure, the values and principles which guide the

workers, and through a contemplative training system. (Payutto, 1999)


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When Entrepreneurs have a Buddhist practice, the development of compassion

becomes an integral part of their spiritual path. Within an interconnected perspective and

development of wisdom, a role of Good Friend (Kalayanamitta) is needed as a crucial skill in

their enterpreneurial leadership to provide useful information for their employees/ others

(Payutto, 2005), similar to authentic or integrity leadership (Endrissat, Muller, & Kaudela-Baum,

2007), transformation role of entrepreneur to go beyond the existing routines to elaborate and

diffuse new ones with moral virtue and ethical standards.

The man and wife owners in this case study play the role of good friends as leaders of

their business organization and skillfully use Buddhist principles to create a social environment

which provides the chance for employees to practice good conduct, to achieve calmness of

mind and develop wisdom. An arrangement of such social environment includes three

components which are an enabling environment, rules and principles of behaviour and a

training system for their colleague to conduct a good deed (Payutto, 1999). In essence, a good

friend role is considered as an external key to ignite the Threefold Training of each person, in

the direction to reduce suffering, but gain happiness and wellness (Payutto, 1999). Hence, this

study examines how they apply Buddhist Economics in their business practice and the

arrangement of their social environment, to discover whether their practice is different from

others and is able to provide the significant institutional pillars to cultivate compassion and

enhance cooperation and rational behavior. It also examines how it affects business success

and profitability.

Methodology

This is a descriptive and explorative piece of research without any previous research

undertaken. The case study has an extreme situation or a high expeirence level of Buddhist

practice, and as a pointer for further research (Pitttigrew 1990; Eisenhardt, 1989). Siam Hands

Co., Ltd. (Tang Mo or water melon) which is located in the southern suburb of Bangkok0 The

company produces and sells Tang Mo branded apparel with a radically different approach to

the conventional management style.

From August 2008 through January 2009 it was observed its operation and social

activities within the community outside the factory and conducted interviews with the couple

owners and twenty employees chosen by a stratified random selection method using the

companys employee data base which is in line with a triangulation approach in order to

increase internal validity (Yin, 2003).


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Analysis of all data, note-taking, transcripts and documents, grounded on theory were

used with the aid of ATLAS.ti software (Muhr, 1997 qouted in Duerr, 2004:46) to code and sort

data into open coding and later connect them together as themes and patterns in the form of

narrative style. The influence of Buddhism over how this entrepreneurial couple manage their

business and details of arrangement of the three components of social environment within Tang

Mo are a key theme.

Result

The Thai Garment Industry

During the 1970s Thailand offered protection to the developing textile industry by

increasing import tariffs, removing restrictions on the industry and promoting the establishment

of new textile firms under the import-substitution policy. With the comparative advantage of

cheap labor, low property costs and import and export quotas, the textile industry became

successful enough to play a significant role in the Thai economy and become the second

largest export commodity of the country (Charoenlert, 2009).

The Thai textile and garment industry has faced many dramatic challenges such as

increase in wages, reduction in total productivity, a drastic increase in competition from

emerging countries entering the 'low cost' market without quotas. The labor-intensive industries

tended to decline as they lost their former competitive advantage. However, the government

took advice that Thai industries needed to shift their focus from low cost to high quality

products and enter the high-end market. The government offered advice, financial aids and

incentives, to produce higher quality products; loans to upgrade technology; training schemes in

marketing and production and encouraged innovation. Especially for the garment industry, it

had to move beyond typical cut-make-and trim original-equipment manufacturing (OEM) to

improve the overall quality of design and marketing and increase the manufacture of quality

branded goods. If individual companies did not seriously decide to adapt to new conditions, the

predictions were they would not survive. This sort of industrial transformation cannot happen

overnight but requires longtime commitment of capital, improved technology and skill trainings.

While encouraging technological improvement, the government also sees the necessity to

improve human resources by education to create a learning culture and upgrading skills to

develop highly skilled work forces, which would result in a new level of competitive advantage.


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Background of Siam Hands (Tang Mo)

The owners of Siam Hands (Tang Mo) are a couple who developed entrepreneurial

skills while they were at Thammasart University. They are from different backgrounds. The

Woman is from a Thai-Chinese merchant family in Bangkok while the man is from a farming

family in Yasothorn, North-East Thailand. He was the first member of his family to have the

chance of education at university level. After he met his wife, they developed a joint enterprise

as vendors at events such as fairs, exhibitions or expositions in university or public areas.

They found they were not able to buy good quality, well designed T-shirts from the

wholesale market. So they adapted a design from an imported brand and printed designs on

plain T-shirts themselves. This was a first step for them to expand their scope from selling into

production and accumulating experience in clothing manufacture.

Their first company "Why Japan?" was established in 1985 to produce and sell Tang

Mo Branded apparel to the domestic market and as an OEM for the export market. The owner

explained the company name. Why does Japan offer a better quality than Thailand?" If they

could establish their product in Japan the quality of their goods would be comparable. Then he

planned to build a full-equipped factory when he succeeded in exporting to Japan. Just four

years later he was able to build a factory in a beautiful park. Their new company Siam Hands,

meaning products from the hands of Siamese people, was established in 1989.

However, to start up business from zero, like many others, they had to leverage a huge

loan for the construction of the new factory and expand their domestic market through modern

trade channels of superstores or department stores. During the economic crisis of 1997, they

suffered like others when faced with rapidly increasing interest rates and the banks asked them

to pay off their loan. Even though they had an export business, and sold some clothing for Thai

currency to local merchants, most of their stock went to superstores and department stores on

long credit terms so they were not able to improve company cash flow to get money upfront

quickly. So they rearranged their payment priorities making the payment of their loan the last

priority by stopping payment for one year. This placed the company on the NPL (non-

performing loan) list which affects applications for loans in the future. The owner's philosophy is

business is like a game. If you want to play this game, you know that you can loose as well

as win, so you must accept loss. Business is not the reality of your life, so it is not necessary to

jump from a high tower to commit suicide when you have a setback. The bank may sue us, but

they may have 10,000 customers in the same situation. "Due to his educational background in


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law, he knew that a suit would be very difficult and expensive for the bank and they would

prefer to negotiate. After he gradually paid off his entire loan a bank officer invited him to

borrow money again. When he told him he had been on a blacklist, the bank officer said,

"That's alright."

This crisis taught him to distrust the capitalist system which encourages people to borrow

huge loans from financial institutions. He and his wife wanted to be independent from banks.

Neither did they wish to develop their business by selling company shares in the stock market. In

his opinion the stock market does not create anything but simply manipulates present money for

future money. "We do not need that kind of unreal overnight prosperity which does not reflect true

values. We still eat normal food, don't we?" Moreover the high stock value of the company is not

a true success indicator either. He obtains satisfaction from hearing that his employees are able

to improve their house, purchase their own land or build a house which they proudly invite him to

see. His factory can produce changes in people for the better. If a heavy drinker or drug addict

chooses to change their lifestyle that is a profit he values. Neither he, personally, nor the

company has ever borrowed any money since paying off their entire loans in 2002.

Buddha Dhamma in a Business Context

This entrepreneurial couple have had experience of Buddhist practice since childhood

and have had continuous practice ever since. Both of them accept that Buddhism has

considerable influence over their way of thought, and actions, especially in their concern for

others.

Such a way of thought is embodied in their relationship with people inside their

organization and creates their management style which is quite difference from usual

management practice. The owner believes that the entrepreneur has a duty to develop a strong

organization at the fundamental level. Then when the company becomes profitable, his duty is

to distribute this profit fairly to the people in the organization who have contributed to the

success of the enterprise.

Interviewed employees confirm that they see principles of Buddha Dhamma are applied

within different situations in the factory on a regular basis, such as practicing the five

perceptions, doing good deeds, generosity, and helping each other. They also say that their

owner enables them to make merit (Thm Bn) by arranging various activities inside and

outside the factory at regular intervals.


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The detailed application of Buddha Dhamma in Tang Mo creates a favorable social

environment for the cultivation of good deeds within the three contexts of an enabling

environment; rules and regulations; and the training system.

Enabling Environment

The detail of enabling environment is divided into five components, which are; physical

environment; remuneration and welfare; leadership; communication; and daily routine.

1) Physical environment

The male owner had a chance to visit YKK factory at Kurobe City, Toyama Prefecture,

Japan. The walls of this factory are glass and it is surrounded by a beautiful garden with many

big trees. It inspired him to create his own factory. This factory, Siam Hands, is located on the

Tha Jean river bank, the South of Bangkok. Big glass windows are major feature of a building

which is surrounded by a beautiful park with many trees. Space planning was designed with

concern for their employees. The best views and location near the river were chosen for

employees who spend most of their time in this building. A unique cooling system was

designed to create comfortable working conditions during day time. Due to the high investment

and operational costs, generally the installation of air-conditioning systems in factories depends

on the requirements of the production process rather than the comfort of employees. So, their

employees work in a cool building with great views of green and beautiful trees and a river

flowing by.

The outside and surroundings of the building are kept clean and tidy by gardening staff

while employees are responsible for their own operational areas. It feels like a holiday resort,

not a factory, one employee commented. Many employees prefer to have lunch on wooden

tables and easy chairs on the river bank rather than in the canteen and they also have their

exercise there in the evening.

2) Remuneration and welfare

Tang Mo started by using the piece rate system but with the guarantee of the minimum

wage. This means the employee will receive the minimum legal wage rate if the company is not

able to provide enough work for them to earn more. After they faced a situation of having no

completed garments for sale although they had too many pieces of some parts but too few of

another, they had a radical rethink of the sewing process. They decided to experiment with a

team production instead of individual piecework. Ten operators in the sewing division were re-


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allocated to work as a team to produce finished garments. Sewing machines in this unit were

aligned in a U-shape so that operators could help each other if one stage was overloaded. By

this new method the company received finished garments every day, while each employee

received an equal share of the wages earned by the team each day.

At the beginning this new arrangement was not acceptable to everyone as some highly

skilled operators were afraid of a decrease in their earnings if they had to work as a part of a

team and had to help the others in case of an overload in some stage of production. So a trial

team of medium skilled operators was arranged with the proviso that anyone who had a

problem with team working would be allowed to go back to work individually and be replaced by

a new one. At this time computerized sewing machines were being introduced and these were

used as a motivation for the setup team. This trial team was using computerized sewing

machines and after one month, they received higher average earnings than in the previous

month. This convinced others to apply for membership of a team and four or five teams were

set up each month until finally, the whole sewing operation was organized in teams of varying

levels of skill. Discussion meetings were arranged to deal with any problems that the teams

could not sort out themselves. At the beginning, some employees in the sewing division wanted

to change teams because they felt unhappy working with some member. They would hold a

meeting to discuss this matter before changing them. Requests for this reason no longer

happen though some people find they are not able to work at their team's speed and ask to

work at a lower level. The following anecdote illustrates the profound change of attitude which

now prevails.

One of the highest skilled teams of the sewing unit had one member who was older

than the others. As years went by, her eyesight deteriorated so that she needed assistance to

thread a needle, causing two people to lose production time. However, all members in this

team insisted on keeping their older member and were happy to help her. Their collective

earnings fell noticeably. Eventually their Pee (supervisors) investigated the situation and

intervened to place this member in a lower skilled team. As soon as she was replaced by a

new member their earnings increased. This shows the profound change of work culture from

individuality to powerful team loyalty.

Operators in the cutting division also work as a team following the same trial process as

the sewing division. After both these divisions were fully operating as teams the packing

division and others were the last groups to arrange working teams. Most operators in all

divisions now work as a team with the exception of a few supporting steps in production, such


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as buttonholing and hand finishing where people are still working individually. There are few

complaints or calls for rate adjustments because most employees are earning considerably

more than the guaranteed minimum wage rate as the productivity of both individuals and teams

has gradually increased.

In each month Managers and supervisors will consider team performance and individual

working. If they find someone who is slowing down their team's performance their Pee will

discuss the situation with them and, if necessary, they may be moved to a new team, but not

without their agreement.

When there was a reduction in order volume, the supervisors (Pee)sought to maintain

the operators' earnings by decreasing the size of the teams to increase productivity. This

adjustment was applied in the cutting division as well where they began to work as a single

team. They accepted this adjustment because it helps them all to have equally shared

earnings. These adjustments show how Pee is very concerned for theirNong(younger brothers

or colleagues). At the end of each year it is the custom forPee to receive gifts from theirNong

to thank them for their care and support. The acceptance of these adjustments in their

operational practice and their reciprocal relationship show how the brotherhood culture is now

embedded.

The rapidly increasing oil price in 2006, affected the cost of living seriously. The male

owner, as chairman of Nakorn Prathom Chamber of Commerce was appointed as a

representative of the private sector to a committee of government representatives, employers

and workers to negotiate an adjustment of the minimum wage rate. He represented to the

committee that employers should bear the onus of this crisis without transferring the effect to

their employees. He collected data and calculated a new minimum wage rate to cover the rise

in cost of living, and suggested the committee should adjust the new rate to 240 Baht per day;

however the majority wished to settle for about 170 Baht per day. Even though his suggested

rate was not legally enforced, he adjusted the Tang Mo guaranteed minimum wage rate to his

suggested rate, rather than accepting the new legal minimum wage. His employees have

benefited by this additional increase ever since. This is a good example of how he is willing to

act out his beliefs.

Besides three nourishing meals per day and accommodation, there is a fund for an

emergency loan for their employees. Other benefits are the provision of Tang Mo garments for

their employees to take back home at New Year; annual health check-ups; a fully-equipped

classroom facility for Non-Formal Education. About 30 employees make use of a study program


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every Sunday. Tang Mo owners refuse every chance to gain revenue from their employees

such as charging an extra margin on a Tang Mo branded shopping bag or buying some

products and selling them to their employees at a high mark up. Instead they gave their

employees a start-up fund to set up a consumer co-operative inside the factory which not only

buys and sells products for their colleagues but also provides a cafe and gift shop for visiting

customers.

The Tang Mo owner states. "Our principle of doing business is not to profit from any

exploitation of employees. We will use our business talents to make a good profit from selling

our products only, while our employees receive good care, with high earnings."

3) Communication and Leadership of Tang Mo

One employee who has worked with them from the beginning and known them before

their first factory was set up says Both of the owners have a unique characteristic of generosity

and caring for people, especially for younger people, since they were student activists together

in university. Those genuine characteristics are exhibited through their warm and positive

speech and thoughtful actions to care for theirNong(employees) and how they live. Therefore,

most interviewed employees respect both owners integrity and good example to the otherPee

(managers and supervisors). The owners are extraordinarily open and available to all their

employees.

In meetings with the managers and supervisors the male owner always asks the Pee to

think why their employees left home to work here. They realize that they came here to work to

collect money to take back home. He advises the Pee how to work and spend wisely and

encourages them in ways to invest their savings by buying gold or a piece of land for example.

He would like to see all Pee caring about theirNongin the same way, not only in their work but

also how they live. They themselves should set a good example. His strategy is Regulate

yourself. Do what you say and ask other people to do.

The managers express care for their Nong by considering ways of improving their

earnings, supporting their work and caring about how they live. A Pee (Brotherhood)

relationship, shaped and influenced by Buddhism, prevails in this organization. Even though

one Pee is the Personnel Manager, in this company her role is responsibility for the payroll,

legal requirements, training and supporting activities only and not employee welfare, which is

the responsibility of all Pee, including the owner.


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The Tang Mo owners continually and consistently use their own actions and words to

communicate the need to express positive feelings towards others. They also encourage their

employees to speak politely to all because speech costs nothing but has a value in peoples

minds. The owners always tell their employees to speak about others from a positive point of

view or express an optimistic attitude concerning others. This way people are more likely to try

to match your expectations. Negative criticism is likely to be resented, and does not help

anyone to improve.

One interviewed employee described how she has changed in several ways since

working in Tang Mo Before I worked here I was very roughly spoken and stubborn. I saw how

my colleagues spoke very politely and I began to think that I wanted to be like them. It took

about three or four years for me to change enough that even my parents noticed and

complemented me on this change in manners and show of responsible adult behavior.

There are many specific words in this company to express how they think about others

and give them dignity and self respect. Starting with the owners tells their employees to call

them Pee (which means Elder Brother). So Present from Pee means the annual bonus; and

a word meaning Important Customer is used to address all wholesale buyers and small

merchants although they may only be seeking the minimum purchase (12 garments).

4) Routine activities

The culture of brotherhood also prevails in their production routine and various

organizational activities, such as 'making merit' and social and community activities.

4.1) Production routine

Since the production system in Tang Mo is based on teamwork in each division,

employees in each team can arrange their own working time within the company schedule of

opening and closing times. This varies according to the amount of orders in each period. So

there is no time bell in this company or even time recording except for a few salaried staff.

They have responsibility for cleaning their own workplace without formal supervision and leave

the offices without the common security check.

Each team comes to work, stops working for the lunch break, returns at an agreed time

and finishes work together at the agreed time. This is especially true for the sewing division

which is the vital production unit. Operators in this division normally take a lunch break of less

than 30 minutes and go back to work without supervision or orders from Pee. Before work each


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day, the team members in a sewing unit will have a short discussion among themselves about

the work they will have to do and decide a target quantity they want to achieve that day.

Quality control (QC) along the production line is done by the operators themselves in

each team and by QC staff who fix the piece rate pay, as the final process of the sewing

division. Whenever Quality Control finds an error in any team, all production in that team must

stop to see what has happened and correct it immediately. Operators in each team regularly,

have a meeting with theirPee to discuss any new job, and cautionary points and experience of

errors from other teams, from which they may learn. Each team member has a chance to raise

ideas or questions at this meeting. This is a significant example of an immediate feedback loop

and collective learning to continuously improve the quality of production and help the teams to

achieve their targets.

The male owner always encourages them While you are working, please keep in mind

the enjoyment of the people who will wear Tang Mo's neat and well made garments which

come from your attention to detail in production. So consideration for the customers is

embedded in their production routine.

The managers have all worked here since the establishment of the company. They

know the production process very well. Though they have responsibility for their own division,

they are ready to help each other if someone is not in the office, or, when there is an express

order to finish within that day, by supporting the coupling of divisions without raising issues that

someone else is interfering with their job. It seems that there is a Pee team, for the group

management of the production routines, under the owners direction rather than separate

factory managers with individual responsibilities.

4.2) Company activities

Since Tang Mo both produce and sell clothes, they have marketing events or special

events which need extra support from staff. The Thai traditions of, Karn Long Khak or

gathering to help at harvest time, are called upon to encourage voluntary co-operation. The Pee

committee organizes events, such as, promotional campaigns: Tang Mo meets the Important

Customer; Tang Mo Fair; Tang Mo's Birthday; or various training activities. A Pee will gather

Nong from his own division to help in the duties he has accepted. All employees who have

been appointed will take full responsibility and help the company to make a success of each

special event. This is a good chance for them to learn new skills, to meet customers and to

develop friendly relationships with each other.


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This mutual help in company activities has become familiar and acceptable to the

employees. Sometimes, there is an emergency request for people to volunteer to do a task for

the company or to answer a request from a nearby community. Most of the workers are

supportive and even enjoys these activities when they take part. Only one interviewed salaried

employee, expressed dissatisfaction about having no fixed routine job, and having to move

around, and being expected to do different tasks each day, which he feels are not his duty. In

spite of this complaint, he is still working for the Company because he knows that no other

company offers a better chance to save the money needed to take back home.

4.3) Making merit

The female owner is extremely active in promoting making merit (Th m B n)

specifically on Buddhist activities. She wishes to encourage their employees to practice the

Buddhist fundamental principle of generosity or kindness. There are four kinds of merit

activity in this company.

Dhamma talk in the factoryA renowned monk from North-Eastern Thailand may give a Dhamma talk during

working time and employees will have the chance to offer money to the monk. Whenever they

know about such an event, the employees all stop working and participate. It is a good chance

to hear more about Buddha Dhamma and learn to calm the mind. They are proud to have a

chance to offer alms and to meet a renowned monk a chance which they have never had

before. (The Christian equivalent would be a visit from an Archbishop or a Cardinal). These

visits occur several times a year .

Tang Mo's birthdayThey invite about 200 monks from a temple nearby with several renowned monks from

North-Eastern Thailand and offer alms, including food, flowers and other necessities to the

monks, who give blessings and pray on Tang Mo's birthday. All Thai companies arrange a

'making merit' ceremony on the official 'Company Birthday', but only executives and employees

at administrative level are generally invited. In this company all employees participate. Some of

them are members of a committee which organizes this ritual and also arranges a special lunch

menu for this important day. When they send the monks off to their temples, employees who

are not members of the committee, go back to work as usual. At night, there is an annual staff

party, when they have dinner together (without any alcohol) and generous gifts are provided by

the owners.

Kathin Ceremony


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The Kathin Ceremony (Robes presented to monks at the end of the Buddhist lent) at

Wat Phra Baht Huai Tom, Lumpun Province is one of the largest merit making festivals in

Thailand. Tang Mo has been deeply involved in the organization of this ceremony for three

years. Every employee has a chance of making merit by offering money to the fund. Some

employees who wish to take part in this ceremony are allowed to take a few days off. In 2008

about 200 people from Tang Mo traveled by air-conditioned buses to participate in this Kathin

ceremony Interviewed employees say that the Northern Thai and the Hill Tribe culture are

mixed in this Kathin Ceremony which is so great and beautiful. They are happy and proud to

have a chance to make a significant merit together with their families, friends, and other good

people.

Robe Offering CeremonyThere are Robe Offering Ceremonies at local temples in employees' home towns. Each

year, Tang Mo sponsors two employees to participate in such an activity by giving 1,000

garments to offer as alms to their local temple every New Year's Day and the Song Kran (Thai

Tradition New year) day. One employee, who received this fund in 2008, also raised more

funds from colleagues. When he went back home, he and his family members offered the

garments for sale at the nearby community market. He, his family, the owners and his

colleagues made merit totaling 140,000 Baht. It is the largest fund from this ceremony which

this temple has ever received. He and his family are very happy to gain such significant merit

with the support of his company. Tang Mo has increased the size of this fund because there is

a five year waiting list of applicants.

4.4) Social activities

Tang Mos owners also take part in various social and community activities. In the early

years, they helped support primary education by giving several scholarships to students of a

primary school in the factory area and have continued to do so ever since.

They have other chances to engage in activities which help their local community, Nakorn

Prathom Province and wider society, to express Tang Mos gratitude toward their home land.

The owners are part of the Brain Bank club, an association of businessmen and school

directors in this area to support local education. The male owner is also chairman of Nakorn

Prathom Chambers of Commerce Council. The employees can join in these activities by

donating to the scholarship fund and donating food and gifts to those schools on Children's

Day. They also prepare promotional material and publicity and act as welfare staff at various

social events. They also organize training courses for community members from the rural area


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and for workers in other garment and clothing factories. Further there is a well-trained team to

welcome and take care of groups of visitors all year round.

Prominent Social Projects:

The following projects illustrate the widespread influence of Tang Mo throughout

Thailand and how the owners make a good use of business relationships for the good of

society not only in their Northern and North-eastern homeland but also in the troubled South.

Community development North ThailandThe female owner has a long time interest in the temple of Wat Phra Baht Huai Tom

where she received instruction. After her monk teacher passed away she and some other

students wanted to carry on their monk teachers mission to develop this temple as a symbol of

the establishment and preservation of Buddhism in the Northern area and in the surrounding

community of hill tribe people who have settled there.

The Tang Mo owners have continued to support the building work at the temple but

have also enthusiastically participated in community development. When they saw that hill tribe

people in this community are still doing hand weaving of their traditional cloth, they provided

quantities of industrial thread for hand weaving. This was the year when King Bhumibol

Adulyadej celebrated 60 years on the throne. They used this opportunity to petition the King for

permission for these people to put the royal symbol of this event on their traditional hand-made

garments. With this help these weavers earned enough money for their living and had surplus

for their community endowment fund. This community has become a famous tourist destination

for Buddhist spirituality and Hill tribe culture with Tang Mo financial support and advice.

I myself witnessed how local people respect and appreciate Tang Mo. When I was

going to observe the Kathin ceremony, I took a bus from the Chiang Mai Terminal to this place.

When the bus driver learned I was going to join the Tang Mo team he actively helped me to

find transportation to my destination, because there is no public transport in the evening. The

man who gave me a ride was so happy and willing to do so because of the gratitude felt

towards Tang Mo's owners and their members for the support given for their community

development over the last ten years.

Peace initiative in South ThailandThere has been unrest in three provinces of lower Southern Thailand since 2004. The

female owner met the Deputy General of the Fourth Army Region of Thailand and they

discussed how to bring peace to this region. They agreed that bloodshed was not the solution


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but the creation of work and real prosperity might generate peace in the region. So the Tang

Mo Conformity Project to produce 'clothes towards peace' was conceived.

Soon after Tang Mo owners visited one Southern village in a red zone (the area of most

unrest), eleven Muslim women from this village came to train to sew clothes in their factory.

After one month, these Muslim women went back home with their new sewing skills and a

complete set of sewing machines to open their own small clothing factory. A small building for

career training in this Community was built with various forms of support: a piece of land from a

donor in their village; active labor from the male villagers and soldiers; and building materials

from Tang Mo and a group of businessmen friends.

Tang Mo supplied a quantity of yellow cloth to make shirts to be branded "Conformity

Shirts" to sell in the Southern region. All the revenue, amounting to about 400,000 Baht Tang

Mo gifted to community development in the region. Now this factory is a subsidiary of Tang Mo

with the workers receiving the same piece rate as employees in the main factory. The factory

also provides advice and training to people from other communities to set up similar projects.

The people appreciate this chance to make a living for the benefit of their families. They are

grateful for this practical help which the Thai army and Tang Mo have given them.

Rules and Regulations

This company is obviously efficiently run and the work force appears well disciplined

and responsible, although they do not use the usual methods of organization.

1) Organizational Management

Tang Mo does not employ a conventional organizational management style. There are

no charts of the management structure; ranking; job description; or career paths in this

company, although it employs about 1,000 people. The male owner explained his reasoning.

We employ a brotherhood culture in our organization I am an 'Elder Brother'. It may

not be easy to understand how one person is able to look after about 1,000 'brothers'. In

general, organizations which employ so many people have to display a clear career path of

promotion and show the workers how they may hope to progress. But we do not have it here

because everyone is already in the highest position of which they are capable. It is not

necessary to ask What is the next step? for the people who look after production, or for the

people who make up a unit. We have seen that when one of the highest skilled sewing

operators is promoted to be a salaried supervisor that person is worse off financially and less


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happy in themselves. So it is better to let them employ their skills in a sewing team as long as

they wish.

A pyramid career path is designed to deceive people. By dangling the hope of

promotion before them, they are deceived to work till retirement, by continually telling them

what their next step will be. If someone is capable of organizing 100 people why should he or

she not have the job right now? Instead they are told they do not have enough seniority until it

is time for retirement.

Such deceit is not necessary in our organization. Our highest skilled sewing team

earns an income of 28,000 Baht per month or 1 million within 3 years which they could not

make at another job elsewhere in Thailand. The other teams earn not much less than this

amount. Admittedly, these earnings are in high season only. In low season, they are able to

work at a more relaxed pace but still will earn at least 10,000 Baht per month.

All employees at administration and supervision level or ' Pee ' have been working with

Tang Mo for more than ten years. This period is long enough to form a relationship with the

owners and to develop true understanding of their owners' ideas, feelings and intentions in the

development of this organization. It is also long enough for the brotherhood culture to be

embedded in their reciprocal relationship not only with their owners but also with their

colleagues. Their diligence, trustworthiness, and team spirit in dealing with their individual

responsibilities; their participation in organizational activities; and their willingness to implement

any request of the owner show that a genuine brotherhood relationship prevails in this

organization. This is the crucial factor which makes charts or career paths unnecessary .

2) Reward system

While the rewards for the Tang Mo operators are dictated by their own working pace,

which each team decides for themselves, salaried employees receive a basic salary plus a

bonus or a present from Pee as it is called, which is not a standard calculated amount. There

is no standard evaluation or performance assessment except for new employees after their

probation period.

The male owner has an individual meeting with each person during the 'giving a present

period'. He explained his reasons for having a private talk with about 80 salaried employees,

each of which can take more than an hour. "I have a duty to make the people who work with

me feels appreciated. Why do I give up my one free day for playing golf? I don't like golf that

much! I want to show my employees that they are not is only a resource of labor but that I


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think of them as younger brothers and sisters who have put their trust in me. So of course I

have time to talk with them and listen to them. I prepare for each interview by collecting

information from watching them and having informal conversations with them at different times.

I tell them what I feel about their behavior but, in this interview, always look for positive points

and praise them if they have exceeded my expectations. I also take private circumstances into

account when assessing the amount of bonus, but remember that I must be fair to all"

He takes time to get to know them personally, enquires into individual circumstances

and assesses the bonus according to each need. A culture of secrecy surrounds the bonus and

individual amounts are never discussed. However information about the overall performance of

the company is readily available so that they can estimate the total bonus 'kitty' and assess the

fairness of their own ' present '. Most of them say that they are happy. One of them said she

had spent her bonus on a down payment for her family house.

3) Punishment

In most factories there are punishment rules for tardiness, absenteeism, substandard

work performance or breaches of safety regulations. In Tang Mo undesirable behavior is

defined from a different basis, using the Five Precepts (S la) in Buddhism, as a basic ethical

guideline interpreted with slight differences in the context of a modern company. The last

Precept, to abstain from intoxication, including smoking as causes of heedlessness (Payutto

2005: 175) is the most relevant in a factory with machines and much inflammable material.

Therefore, Tang Mo employees know that smoking, drinking, drugs and quarrelling are

prohibited in this organization. Since advertising and media now strongly influence the Thai life

style, there is also concern about the third precept 'to abstain from sexual misconduct' (Payutto

2005: 175), so sexual harassment and the wearing of unsuitable and daring clothes are

frowned upon.

Tang Mo employees all know that such misconduct leads to suspension without pay for

a period of self-reconsideration lasting from three to six months or one year depending on the

seriousness of the misconduct. They also know that there is no favoritism and even the highest

skilled operator will be punished for misconduct without any exception. Whenever such a case

arises the male owner himself will talk with this employee in private and there is no public

humiliation. He explained, Punishment for our employees does not happen automatically when

a rule is breached. If there is any punishment for misconduct, I will talk with them directly and

not callously. I talk with them as younger person who has a weak character, but is not an


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irreclaimable wrongdoer. I point out how they are going wrong and what life should be about. If

an employee returns at the end of the self-reconsideration period the owner again talks directly

with them about what has happened to them during this period and how they now view their

behavior before accepting them back to work. Almost all these employees come back to work

at Tang Mo.

Interestingly, most employees who were selected for interview because they had been

suspended were reluctant, to tell the reason why they 'quit' their job. However, they spoke

readily about their experience of working in other factories during their time of 'exile'. These

were not good and they now appreciated how much better were the working conditions at Tang

Mo.

Most interviewed employees appreciate the benefits of these rules, which make them

both healthier and more secure in their material well being. The male owner remembered an

occasion when he gave a talk about how he runs his business. When he mentioned these

rules, he received a comment that the rules in his factory were close to a violation of human

rights. He replied that the main rule in his organization is to accept clean and healthy people

and help them stay that way. Further, if they do not want to live by these rules, there are many

other factories available for them. Some interviewed employees said that they too complied with

the rules because they did not think they could find a better job in terms of earnings, welfare

and caring than they had at Tang Mo. There are still some employees who smoke or drink in

their leisure time, but they agree that it is not good for them and are often ashamed that they

cannot control their addiction and try to keep it secret from their Pee (male owner). They also

express hopes of stopping in the near future.

Training system

Training in this organization is divided into two categories - technical skills and life skills.

1) Technical Skills

Technical skill training is provided for individuals or small groups, often on a voluntary

basis. Besides conducting and attending formal training courses within the organization, most

Pee (managers and supervisors) have had study visits to other garment factories and have

traveled abroad to such places as Singapore, Hong Kong or Mainland China. I was told about

the first time that a group of them travelled abroad. When they submitted their documents to

apply for a passport, they had to be approved by several officials, starting with the head of their


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village, then head of the district and finally the governor of the province had to sign their

application. This was because they were the first people in their village ever to receive a

passport to go abroad. So everyone wanted to know about the journey their company was

sending them on.

They learnt several useful techniques from these study visits to be adapted to their

production system. One interviewee was not impressed by the trend for replacing workers with

machines, in automated systems. "We use machines to support and facilitate our work and to

save our strength. When machines replace workers, workers lose their jobs. I think letting a

worker have a job to do is better than using a machine.

2) Life Skills

Life skill training is provided for all employees as the owners care that all their

employees should lead meaningful lives and not succumb to the destructive illusions of

happiness in the modern city. Most employees have migrated from rural areas, in order to

save money to care for their parents and families in their home towns, where paid work is

scarce. So training is provided to keep them mindful of this purpose and show them how to live

in a big city where media and advertising encourage them to spend and have a 'good time'.

Formal and informal training courses for Tang Mo employees are conducted by various

instructors.

2.1) By a renowned monk

All Tang Mo employees are encouraged to be observant Buddhists. They receive

Dhamma Talks from renowned monks in the factory during their working time. The female

owner in particular arranges regular opportunities to visit a temple, participate in festivals and

make charitable donations. She sets a good example and tells them that the amount they give

is not as important as the sincerity of their intentions in 'making merit'. The rewards they can

enjoy are peaceful happiness and freedom from stress.

2.2) By the Pee

Tang Mo trainees also have a twenty-four hours training course called From Sincerity

to Eternity. The purpose of this training is to inspire them to think about the components of a

meaningful life, which are themselves, family, work and society. All Pee (managers and

supervisors) underwent several life skill training courses from an external trainer. They then


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adapted what they had learned to create their own training course for their colleagues. Activities

are designed to promote fellowship and team spirit. The climax of the event is a closing

ceremony around a bonfire when all drink water from a common bowl. This ceremony is

conducted by their male owner, who explains the meaning of this event for him.

All of us came from different places and did not know each other before, but now we

have a life together and common aims to work together to make money to help our families and

the society in which we live. Our life is like the water in each glass. It has its own identity, as

we are of different origins, education and home towns. Now we have water to represent us in

our hand, so we pour it into a bowl and no one can separate this water again. The water in this

bowl represents our intention to work together so all may prosper. The water in your hand right

now is a symbol of our commitment and common bonding. Please drink this water into your

hearts together.

Some interviewed employees remember the deep impression that this ceremony made

on them. They felt an indescribable, overwhelming emotion which created a strong bond with

their owner, their colleagues and the organization. It has become a compulsory training course

for all new comers to build an understanding of Tang Mos culture of brotherhood.

2.3) By the Owners

The Tang Mo employees are able to meet and speak with their owners at various

events and activities. Most go back home two times a year, during New Year holiday and Song

Kran (Thai traditional New Year holiday). Every year before these events the owners hold a

general meeting where both owners inform their colleagues about the company performance;

present situation; and future trends of their business, including how all their lives may be

affected This is followed by homely advice about safe travelling and how they should treat their

parents with gratitude and respect and not boast and show off about what they have learned in

the city. This shows how sincerely the owners feel that all the employees are part of the Tang

Mo family, with a right to know about the business and are also cared for as individuals.

The Result of the Application

1) Organization

The Tang Mo business has continued to grow robustly throughout twenty years.

Besides producing and selling clothing to serve both the domestic market and exports to Japan,

they have also subcontracted a local manufacturer in Vietnam to produce Tang Mo branded


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apparel for export to the US and Europe; to benefit from the 'Generalised System of

Preferences privileges'.

The quality of Tang Mo branded products is accepted and well-known in Thailand and

other countries. Recently, Thai Chamber of Commerce Council (2008) conducted a survey of

Thai consumers to find the best-known brand names throughout the country. Tang Mo brand

was voted the best-known brand of clothes, despite the fact that they were not on the list

offered for the consumers to choose. This result shows their high reputation and acceptance

from Thai customers. It also shows how effective their marketing strategy has been.

The continuous improvement in quality and design and speed of production from Team

Production is another crucial factor for success. The team performance as a wage basis in

Tang Mo remains unique and is not generally copied by other garment factories. Even though

Tang Mo has opened their factory to train garment workers from other factories, none of them

have adopted this system. One of the training managers commented I myself visited one

factory after training and found that they started to work in teams for about three months and

then they changed back to their previous system. It shows that the workers are capable of

working as a team, but it is the owners who decide the pay structure. If the owner is not

concerned about decreasing production time and increasing production quality but only thinks of

keeping wages low he will not support our system."

Production speed is a strong point of Tang Mo, and the male owner explained the

benefits of this principle of Economy of Speed on the amount of stock held and the size of

orders. Economy of scale requires large minimum orders but in the fashion trade the present

trend is towards smaller orders. Our small individual team units can deal with small quantities

and eliminate many costs from factory to selling outlet, including costs related to stock in hand;

bank interest; rental cost of warehouses; shelf cost; controlling cost; other overheads;

obsolescence costs and merchandise. So we can very quickly produce an order for as little as

200 units. This flexibility on smaller orders serves the rapid changes in the fashion world and

produces a quick response to consumer demand.

Tang Mo's strategy offers a solution to tackle the present economic crisis and escape

from the image of a sunset industry. Their owner's mission statement is We see our business

as Thailand's national defending army in the garment war; to fight cheap products from China

and expensive products from the West by producing good quality goods at an inexpensive price

to reduce the flow of money out of our country.


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2) Employees

The female owner describes how the social environment of Tang Mo is managed. We

provide the best possible environment for our employees. This is not only a good physical

environment but includes the respect and value we place on each individual. They come to

work without security checks and constant control of their lives and so they develop faith in

themselves. We give them this respect, and then they have self respect.

Their employees appreciate their owners and the company which provides them with

working security and good quality of life in a healthy and safe environment; high income; good

welfare; saving schemes; and a warm and happy working atmosphere. As an interviewed

employee explains their feeling towards their organization, There is no other factory which

provides as many things for their employees as Tang Mo.

Since employees are treated as younger brothers and sisters of Tang Mos owner,

whenever, they have any personal problems, they are able to ask for assistance from theirPee.

For example in the case of an employee who was attacked and injured the male owner and his

Pee assisted him in hospital and procured legal advice in the criminal case which followed.

The employees benefit from social activities and educational opportunities which benefit

the communities from which they come. One example is how their savings from their work with

Tang Mo are often used to improve their ancestral lands. This is an interesting example of dual

track development (agriculture and industry).

3) Society

The beneficent influence of Tang Mo is felt in the private industrial sector, in

government, education and rural development while their scope extends to the political situation

in Southern Thailand.

Conclusion: The real power of business

The influence of the Buddhist practice of the Tang Mo owners on the development of

this remarkable and successful Company could hardly be exaggerated. It is embodied in their

thought, speech and actions and expressed in the organization and daily running of the

business at a fundamental level.

The Buddhist practice which is embedded in the contexts of the social environment

within the Tang Mo organization is manifestly and largely responsible for the success and

influence of the business. Their own commitment and the whole hearted efforts of this


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entrepreneurial couple to run their business not only for their own benefit but also to extend

their prosperity to customers and trading partners can be a great inspiration for those who are

exposed to this story. As the business grew they widened their concerns to the problems of all

parts of Thailand and have grudged no expenditure of money and effort to improve the lives of

all it people. This organization really cares for and respects human beings and is a real

influencer for good business practice throughout Thailand.

Implication and Recommendation

Any business owners or managers seeking to apply Buddhist Economics in their own

situation should strive to:

Incorporate practise of the Threefold Path into all aspects of work, especially for rightlivelihood of their type of business or profession.

Embody its values, in particular to develop a long term vision of the real meaning ofbusiness

Arrange an enabling environment for mental development which includes fourcomponents:

a) Physical environment within a long term care settingb) Compassionate remuneration and welfarec) Generous and warm communicationd) Routine of Buddhist action

Arrange mechanisms for encouraging moral conscience instead of the observance ofstrict rules and regulation.

Arrange training especially for life skill training, for liberating the mindAll these conditions are not separated but interconnected. There is interplay between

leaders of goodwill, the enabling environment, the rules and training system. Therefore all the

conditions have to be met without any one left out. When such conditions are embedded in an

organisation, it will not only bring a real meaning to business with more benefits for wider

society but also uplift their peoples lives to enjoy greater happiness, fulfillment and freedom,

especially for living more independently of our consumerist society.

Acknowledgement

The author would like to thank the owner and staff members of Siam Hands Co., Ltd.

for accepting her to conduct interviews and to observe meetings and activities of the company,


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and also thank Miss Isabel Norval for her kindly contribution in editing my text. This paper is

written as a part of Ph.D. thesis on The Buddhist Economics approach to business

management: A case study. This paper is funded by the Thailand Research Fund through the

Royal Golden Jubilee Ph.D. Program.

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