WHAT IS ARTHASHASTRA

The Arthashastra is an ancient Hindu treatise on

statecraft, economic policy and military strategy,
written in Sanskrit. Likely to be the work of
several authors over centuries,Kautilya is
traditionally credited as the author of the text, and
identified with Vishnugupta and Chanakya.The
latter was a scholar at Takshashila, the teacher
and guardian of Emperor Chandragupta Maurya.

IMPORTANCE OF
CORPORATE GOVERNANCE
Corporate governance is an instrument
for benefiting all stakeholders of a
entity.
It is about creating an outperforming
organization.
The concept of corporate governance
has been attracting public attention for
quite some time
The credibility offered by good
corporate governance procedures also

BENEFITS OF CORPORATE
GOVERNANCE
To Business
To Organisation
To Various parties involved.

Relevance of Corporate governance in Arthashashtra.

Attainment of good governance

Code of conduct
Administraton
Kautilyas Arthashastra in areas of
corporate governance

PRINCIPLES OF CORPORATE
GOVERNANCE
Shareholder Recognition
Stakeholder interests
Board responsibility must be
clearly outlined
Ethical behaviour
Transperancy

FACTORS INFLUENCING CORPORATE

GOVERNANCE

The
The
The
The

ownership structure
structure of company boards
financial structure
institutional environment

CORPORATE
GOVERNANCE

Multi-faceted subject.
Accountability, Auditing and control.
Economic and social goals.
Problems that results from the
separation of ownership and
management.
Defined as the relationship of a
company to its shareholders or, more
broadly, as its relationship to society.

Objectives
Environment of trust and
confidence.

Interest of stakeholders.

Systems and procedures which

are transparent.

Who was Chanakya ?

Born in 3 century
Vishugupta Kautilya Chanakya
Pulled down Nanda Dynasty
King maker Chandragupta Maurya
Responsible for the defeat of Alexander
in India
Kautilyas Arthashastra & Chanakya Niti
Documented towards the end of his life

Kautilyas Arthashastra
Written in Sanskrit
Contains 15 books, 150 chapters
and 6000 sutras (shlokas)
Covers over 180 topics. Known as a
Book of Economics, state craft,
Management, warfare, strategy etc
Its a Book of Total Management

Definition and the Basic elements of Management

1. The means of starting undertakings

(assignments/ projects)
2. The excellence of men and materials
3. Deciding suitable place and time
4. Provision against failure
5. Accomplishment of the work

Selection of Employees
Appointment of trainees
A trainable person is the one who has the
following qualities
1.Desire to learn
2.Effective listening ability
3.Ability to reflect (think from all angles)
4.Ability to reject false views
5.Intentness on truth not on any person

Handling Employees

Theory of Motivation
Sama (counseling)
Dana (offering of gifts)
Danda (Punishments)
Bheda (creating a split)

7 Pillars of arthashastra

The
The
The
The
The
The
The

king(leader)
minister(the manager)
country (your market)
fortifid city(head office)
treasury
army(your team)
ally (friend/consultant)