Summary of Key Points
This article uses the gas explosions at coal mines in Shanxi and the fireworks factory explosion in Hunan as examples to contrast the progress of China's industrial innovation (such as DeepSeek) with the lack of safety responsibility and moral integrity among companies. It explores the relationship between "instincts" (self-interest, short-term gains) and "moral capabilities" (conscience, responsibility, duty) in the business world. The article emphasizes that companies cannot be driven solely by instincts (the pursuit of quick profits and traffic) but must adhere to their "duty" (to do what is right and think strategically for the long term). By valuing life safety, compliance, and social responsibility, companies can move from an era dominated by instincts to one guided by moral capabilities, achieving sustainable development.
I. The Logic of "Quick Profits" in the Accidents: How Instincts Overcome Conscience?
The essence of both accidents is that companies prioritized short-term gains, placing their instinct for profit above their moral responsibility to protect lives.
- The Coal Mine Accident and Double Standards: The involved mine used duplicate documents (one for inspections and one for actual operations), concealed passages, and fake doors to hide illegal work areas. It also allowed 123 workers to enter the mine without proper credentials, avoiding regulation. The outsourcing model, which paid per ton of coal produced, meant the company focused only on output, not safety—after all, the workers were not directly contracted with the company, so responsibility could be shifted if something went wrong.
- The Fireworks Factory's Violations: To meet orders and cut costs, the factory illegally stored hazardous chemicals, overstocked materials, and altered the purpose of its facilities. These actions were committed knowingly, as the instinct to save money outweighed the concern for employee safety.
Ironically, while the mine owner invested in a 4A-level tourist attraction to appear virtuous, he allowed his workers to work in dangerous conditions—this is like praying outside while harming people inside, a complete disregard for human life.
II. Both Ancient Wisdom and Modern Economics Agree: There Must Be a Bottom Line to Making Money
Neither Western economics nor traditional Chinese philosophy supports the pursuit of profit without principles.
- The Duality of Adam Smith: Although known for his theory of self-interest driving the economy in "The Wealth of Nations," Smith also valued "The Theory of Moral Sentiments," emphasizing that people have an innate capacity for compassion. He believed success should come from genuine talent and hard work, not through deceit. He even considered burning "The Wealth of Nations" to preserve "The Theory of Moral Sentiments," indicating that morality is more important than self-interest.
- Chinese Traditional Wisdom on Properly Acquiring Wealth: Confucius said, "We should not possess wealth or honor obtained through improper means." Mencius talked about the importance of conscience and moral responsibility. These teachings highlight that while making money is an instinct, maintaining a moral bottom line is essential; without it, instincts can lead to greed.
III. "Duty" Is Not About Being Naive: It's the Secret to Long-Term Success
"Duty" may sound like being a naive good person, but it is actually a safeguard for a company's long-term development.
- What is Duty? Duan Yongping (a well-known entrepreneur) defines duty as doing what one should do in a rational and strategic manner. For example,步步高 did not boast about its high sales figures but allowed consumers to verify them themselves. Zhang Xiaolong of WeChat insisted on a "use-and-go" approach, avoiding excessive user engagement. These practices reflect the duty of not pursuing quick profits and maintaining a moral baseline.
- Poppa Mart's Example: Despite 291% growth in overseas business in 2025, Wang Ning rated its organizational management only 70 points due to underlying issues. After the success of its product "Labbub," the company took a more cautious approach, delaying new releases and pausing marketing to avoid overexerting its brand value. This attitude of not being misled by surface growth is a manifestation of duty.
- **Contrary Example: Pinduoduo's "Ghost Delivery": To attract traffic and lower prices, Pinduoduo allowed non-compliant delivery services to operate, leading to regulatory issues. This shows how instincts (cheapness, traffic) can override moral responsibilities (consumer safety).
IV. From an Era of Instincts to an Era of Moral Capability: How Chinese Companies Should Transform?
China's industries have made progress, but the level of corporate civilization has not kept up. To transform, companies need to:
- Maintain a Moral Baseline: Ensure life safety, comply with laws, and practice honesty (e.g., avoid misleading advertising). Pinduodou's emphasis on safety and compliance in Q1 2026 is a positive start.
- Embrace Moral Capability: Companies should shift from using instincts (low prices, traffic) to fostering moral capabilities (respecting employees, being responsible to consumers). For instance, by allowing users to freely leave after using WeChat services or by not overusing their brand value, companies show respect for consumer rights.
- Adopt a Long-Term Perspective: Duty is not about sacrificing profits; it is about creating long-term value. By upholding moral standards, companies build credibility and capabilities, enabling sustainable growth. Duan Yongping invested in Poppa Mart because he saw its potential for both growth and integrity.
Conclusion: An Era of Moral Capability Is the Future of Chinese Business
Chinese companies have the potential to be formidable, but if they continue to be driven by instincts (quick profits and competition), they will remain labeled as "barbaric." Only by transitioning from an era of instincts to one guided by moral capabilities—where conscience, responsibility, and duty are central—can China's industries truly stand firm and thrive, bringing happiness to employees and peace to society. This is not the responsibility of a single company but of the entire business community.