Indian wisdom provides for a complete set of values forming basis of modern business ethics and management. What is troublesome is how some of us are moving away from these ethos
Ashutosh Mugalikar
Different definitions are given to business ethics by various people depending on their background and culture they come from. Most researchers define “business ethics” as ‘rules of business conduct, by which the propriety of business activities may be judged’. Ethical principles are dictated by the society and underlie broad social policies. These principles when applied on a daily basis after proper understanding, acceptance and continuity determine the propriety of any business activity. The conduct of the owner to follow the law not just in letter but also in spirit ensures the stakeholders which include the society, the customers, government and even the employees, get the intended benefits that must accrue from entrepreneurship.
This article in an attempt to explore and highlight the meaning of business ethics in the context of Hindu philosophical thought. Hindu ethos definitely provides the foundation for modern corporate governance and business ethics.
Case for Business Ethics
in India
With a series of frauds hitting the Indian corporate field the discussion about corporate governance, corporate ethics and transparency have regained some momentum. At the root of every fraud there is a “malicious” intent or ‘mens rea’ as illustrated in criminal law. At a more philosophical level it can be observed that any deviation from set principles laid down by the “society” lead to such issues. From Satyam Scam to NSEL Scam the issues at hand were either fraud, unjust enrichment and/or utter disregard for business ethics and mismanagement. Thousands of citizens then lost their hard earned money (either directly or indirectly) and such incidents hurt the corporate culture in the economy. In this background going back to our roots and imbibing or reinforcing those belief systems becomes all the more important.
Hindu Philosophy and Business ethics
Being aware of rights and duties and conducting business activities keeping these in mind is important to achieve the goal(s) a business entity sets for itself. Hinduism illustrates these codes in various ancient books. Concepts of Rju (straight) and Vran (crooked) and the Upanisadic distinction between Sreyah (desirable) and Preyah (pleasurable) have origins to the sense of what is right and wrong and hence can be related to ethical and unethical behavior in the context of modern day business ethics. Hence the ethical dealings concept is divine in nature. The entrepreneur thus must be ethical with himself and also with the society where he/she is doing business.
Particularly talking about the Upanishads and Bhagavad Gita, it can be seen that correct intentions are as important as correct actions. This can be seen in modern corporate governance theory to follow the law in letter as well as the spirit. Gita further highlights virtues like forgiveness, self-control, non-stealing, steadiness, truthfulness, wisdom and learning which these days can be attributed to “business stability, innovation, optimum utilisation of available resources, non-wastage of scarce natural resources, legal compliances and Intellectual right protection and propagation”.
While attempting to achieve set goals, the human has to avoid “lower inclinations” and reach for “higher inclinations”. It is pertinent to point out that making profit and capitalism are not discouraged in Hindu ethos. Hindu ethos only tend to inculcate the habit of thinking for others ALSO while securing the future for oneself and for near and dear ones.
Philosophical Roots for Business Management
For managing a business in the right way the Manager (owner & staff) must have some personal qualities. Those are the moral standards. “Dharma” being the divine law is the basis for good conduct. Creation of wealth is its outcome which produces merit and merit takes the society forward. Deshdharma means to abide by the duties towards the nation. Being ‘Truthful’, ‘kind’, ‘calm’ are important parts of being ‘dharmic’. The same are equally important for a good manager.
The concepts of karmayoga (work), bhaktiyoga (concentration) and jnanayoga (knowledge) can be extrapolated to modern business management of ‘work being worship’, focus on product/service/business and use of intellect to give right solutions to everyday problems faced by the people. To delve further Karmayoga states that one should always do one’s appointed duties. Action is better than inaction. Inaction is death. Action is life. The Manager ought to perform his specific duties for the sake of duty, which fit in with his native abilities. He can attain his highest personal good thereby, and contribute to the social welfare.
Corporate Governance
and Culture
The Institute of Company Secretaries of India defines Corporate Governance as: “Corporate Governance is the application of best Management Practices, Compliance of Laws in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders.”
At home and in schools alike and via various stories which our grandparents share, the concepts of kausalyam (efficiency), vividha (innovation), samatva (impartiality), nishtha (sincerity), samarpana (commitment), kartavya-parayanta (sense of responsibility), etc. are taught to us and get imbibed in the way we deal with our everyday lives. These same concepts are very much relevant for corporate governance. Furthermore Indian culture is based on cherished values of satyam (truth), shivam (righteousness) and sundaram (beauty).
These ethos simply demand from the “manager” the following: Transparency, Accountability, Disclosure, Value Creation. Which are nothing but the modern requirements of good corporate governance.
Doing one’s duty with individual ethics and honesty builds a character foundation for an efficient society. Differentiating between what is right and wrong, both for business and society and using self-skills to further the society are the very basic concepts our scriptures expect from an individual.
Indian wisdom provides for a complete set of values forming basis of modern business ethics and management. What is troublesome is how and why some of us are moving away from these ethos! Spirituality alone, in my humble opinion, shall lay the path for individual development and societal and business entity shall only be a vehicle to achieve both personal excellence and societal. A management with proper combination of values and skills can assure harmony and progress of organisation as well as society. This is unique contribution of Indian ethos to the business world.
(The writer writes on corporate laws,
policy, economics and politics)
