INDIAN BUSINESS ETHICS

Introduction:
India is known for its ethical values for a very long period of time. The application of Indian
values is called Indianism. Indian values have become universal and a number of multinational
corporations have been incorporating Indian ethical practices.

Kautilya's Arthasastra tradition has the following features:

(a) Material advancement has become a necessity in the world because of the operation of
economic forces.
(b) There are many management ideas because the concept of management itself is a vast and
varied concept.
(c) The exact nature of change cannot be predicted. It varies from time to time and place to place.
(d) An ideal wage system should be related to the quantity and quality of work.
(e) Human beings in general, laborers in particular should be influenced by incentives.

The famous poet Kalidasa in his Raghuvamsam describes Aja Maharaja's behaviour as follows:
"The king's behaviour was such that each of his subjects thought that he alone was very dear or
close to the king".
This idea can be applied to a modern manager in order to keep his organisation in a most efficient
way. Such a type of relationship can bring better team spirit.
According to Indian ethos, a manager should be a sattavic personality. The sattavic personality is
summed up by Bhagawat Gita in the following words:
"Liberated from attachment, not uttering 'I', endowed with the power to sustain and enthuse,
unaffected in fulfillment or failure, such an actor is said to be sattavic.
Though it is difficult to have such a type of personality, the managers can come forward to
practice some of these good qualities. We have to believe that practice can make perfect.

Vedas and ethics

The Vedas have given the following the dimensions for ethics:
1) People should develop two types of knowledge. One is the knowledge of internal excellence
and the other is knowledge of external excellence. Both these two aspects of knowledge are
necessary.
2) When we work together with great enthusiasm and interest, we get great energy. (Saha
Viryam Karavavahai)
3) A holistic approach is very much necessary for a businessman. He is a mere profit seeker. He
has a responsibility of making both his employees and customers are to be happy.
4) Business people should practice the concept of MAITRI, which means friendliness to all. In
this way the competitive evils can be very much reduced.
5) A businessman has to understand the peculiar problems of poor and economically weaker
sections. He should be a KARUNABHAVAwhich refers to respect and compassion.
6) In spite of competition and the growth of new products, a good businessman should be able
to appreciate the qualities of others. This is called in Vedas PRAMADA BHAVA which means
joy in seeing qualities of others.
7) There are four important goals to everyone including businessman, Dharma, Artha, Kama
and Moksha. Dharma refers to righteousness, Artha means creation of wealth, Kama refers
to desires and Moksha is the liberation of the individual and reaching Heaven.
8) The Vedas have prescribed MADHYASTHABUDDHI BHAVA which means impartial, calm
and even attitude of mind towards all people in all times. This attitude will help all people in
general and business people in particular.

Meaning of Shastras:
Shastras provide guidance for right living and not for immediate pleasure. The Shastras provide
ways and means of self control. There are two root words of Shastra, Shashan which means rules
and regulations and Trayate which refers to saver and protector. The sources of Shastras are the
Shruti.
Shruti means the Vedanta. Shrutis are eternal and immortal.
Shruti has an excellent concept of self. In each individual there is Poornatwa and Ananda. It is not
felt by the super-imposed egos. By patient enquiry one can find this bliss (ANANDA).

Laws of punishment:
Indian ethics is not an all compromising ethics. It has also prescribed good methods for reducing
evils by offering rules for punishment.
1) Punishment is the protector of all creatures.
2) Punishment is to be inflicted justly.
3) Without punishment of the guilty, the stronger would roast the weaker.
4) The whole world is kept in order by punishment, for a guiltless man is hard to find.
Hence punishment is sanctified.

Indian ethos suggests that all great undertakings are achieved through mighty obstacle. Vedanta
views the life of man in its wholeness. Indian ethos contains both secular and spiritual.
The Mahabharata says Dharma is "that which holds together, that which sustains, all human
beings".
Hence Dharma is giving a lot of importance to team spirit and cohesiveness.

Work efficiencv:
The Chandagya Upanishad which was written more than four thousand years ago has defined
work efficiency:
"Whatever work is done with Vidya (knowledge) through Sraddha (faith) and backed by
Upanishad (meditation) that alone becomes most effective".
When we do any work, we should not think of anything beyond. Work should be done as the
highest form of worship and devote our whole life to do the job in hand for the time being.

In this connection, Swami Vivekananda says, "Life is short: Give it up to a great cause, arise,
awake, and stop not till the goal is reached".
Many are having opinions. Only a few have convictions. The convictions are the mothers of great
deeds.
In Indian ethos suggest the growth of positive, strong and helpful thoughts to enter into the brains
from childhood. The employee loyalty is the key for achieving the goal.
The Greek consider man as a 'political animal' socialists consider man as a 'social animal'. The
Americans consider man as a 'tool making animal' whereas Indian ethos considers man as a
"divine being".

Swami Vivekananda has given a holistic approach to human resources management by the
following positive formula:
 Love begets love
 Hatred begets hatred
 Trust begets trust
  Gratitude begets gratitude
 Respect begets respect
 Empowerment begets responsible productivity

Chakraborthv Model

Prof. Chakraborthy, a famous professor of Indian ethics has suggested an ethical model for
business, called Rajarishi model.

This model has the following features:

a) A business man should have a pure mind
b) He should be ego-less.
c) The work done by him should be an example of sacrifice.
d) The business place should be like an Ashram.
e) Efforts should be made to increase the longer life cycle of the product.
f) Decentralization for better performance.
g) No competitive advertisement.
h) As far as possible, the local resources have to be utilized.
i) Over consumption to be avoided. The producers themselves to advice the consumers in this
direction.
j) The consumers in general to be strongly advised in the area of simple living and high
thinking.
k) Loyalty is a common feature for employees and consumers. In the same way the producers
should be loyal to the consumers and distributors.

Meditation and Yoga:

Indian ethical practices include both yoga and meditation for all people in general and business
managers in particular. Yoga gives both physical and mental strengths. It gives a combined
exercise both to the body and mind.
Meditation is removing the stresses and mental strains of an individual. A business manager is
bound to undergo a lot of stress, uncertainties and setbacks. To save him from the negative effects
of these setbacks a good meditation helps him. In fact, meditation helps an individual to make a
careful and candid decision. The prejudices and bias are avoided.

Gita on management:
Bhagawad Gita means "song of the Lord". The following ideas deal with ethical management in
Gita:
1) Business should be done on the basis of "Dharma" which means "sacred duty". Dharma
means "that which sustains".
2) Action should be performed without attachment to the fruit of action. Then action should be
disciplined action.
3) Three gunas, Sattva (lucidity), Rajos (passion) and Tamas (dark inertia) are available in
nature. A good business manager should encourage Sattva qualities.
4) One should not be a coward in times of crisis. The coward is ignoble, shameful, foreign to
the kingdom of God and away from Heaven.
5) Timely decisions have to be taken in a quick manner and to be complemented. One should
develop the courage and conviction to face the consequences of the decision taken.
6) Performing one's duty is more sacred than any other thing in this world.
7) Inner strength is of great value for any businessman. He has to take important decisions,
borrow, invest, diversify his business and undertake a calculated risk.
8) Constant and continuous engagement in the duty or business can save anyone from
unnecessary fear and worry.
9) Desire, anger and greed are the three gates of hell for any person.
10) Human mind is unsteady and hard to hold. But practice and dispassion can restrain it.
Krishna tells Arjuna that any man who acts with honour cannot go the wrong way.

Summary
Indian values have become universal and a number of multinational corporations have been
incorporating Indian ethical practices like yoga and meditation.
Features of Kautilya's Arthasastra tradition.
Vedas and ethics.
Shastras - Laws of punishment - work efficiency.
Holistic approach of Swami Vivekananda.
Chakraborthy model.
Meditation and yoga.
Ideas of Gita on management.

Questions
Section 'A'
1) What are Indian values?
2) Define a holistic approach.
3) How can yoga promote ethical practices?
Section 'B'
1) What are the features of Arthasastra on ethical management?
2) Discussthe ethical ideas of ideas of Vedas.
3) Discussthe features of Rajarishi model.
4) What are the ideas of Gita on management?
Section 'e'
1) Examine the Indian ethical values applicable to modern business. Suggest the methods for
the implementation of these values in a modern MNC.