Chapter 2 summarizes the key principles of Confucian philosophy and the influences of Confucian values on individuals, societies, and modern economic activity in East Asia. As the chapter explains, the most important principle in the development of internal ethics is benevolence, and it is part of the virtues that are considered to be preconditions for a hierarchically structured, harmonious society. The impact of Confucian principles on business activities in East Asian countries has been reflected in internal moral development (business ethics), interpersonal relations (organization and management structure of companies), and business culture in general. The chapter discusses the significant variation of this impact in East Asian countries and regions (specifically, in mainland China, the Hong Kong and Taiwan regions, Japan and Korea). It explores the impact of Confucianism on business culture; and then, in light of that discussion it considers the implications of Confucian business culture for competition law and policy in East Asia.