Kautilya & Business Ethics

What is Business Ethics ??

 The application of general ethical concepts

to the unique situations confronted in the business.

 Focuses on the right or wrong behavior in

business and what principles or rules can be used as guidance in business situations.
 Takes into consideration the employees and

customers of that organization.

Why Business Ethics Important ??

 Business

Ethics is important to any organization despite the fact that the chief aim of any organization is to maximize shareholders wealth.

 Good ethics should be seen as a driver of

profitability rather than a burden on business.

 Investors are reassured about the company's

approach to risk management.

 An ethical framework is part of good

corporate governance and suggests a well run business.

 Employees

will be motivated in the knowledge that they operate in an environment of good ethical corporate behavior.

 To gain a long-term relationship with

customers and achieve customer return for the business, the business needs to be based on ethics.

Changing Trends in Business Ethics

 Business ethics are improving, according to a new

survey by the Ethics Resource Center in Washington, D.C. The study polled employees and executives in firms of all sizes, in many fields.
 Observed misconduct at work is less frequent

since a 2000 poll, and there's less perceived pressure to compromise one's own ethics.
 Plus ethics problems are reported more, with

greater security being mandated for whistleblowers and others who come forward.

Kautilya Who ??
Kautilya, popularly known as Chanakya. Also known as Vishnugupta. Minister in the kingdom of Chandragupta Maurya during 317-293 B.C. Considered as one of the shrewdest ministers of all times. Explained his views on State, War, Social Structure, Diplomacy, Ethics, Politics and Statecraft very clearly in his much celebrated book Arthashastra.

Kautilya and his contribution to Business Ethics

 Chanakya is considered to be the worlds first management

guru.
 His management thoughts and ideas helped kings and

rules for centuries.

 All the powerful kings in ancient India like Ashoka had

learnt Arthashastra and practiced it to expand their kingdom multifold (increase market share), to protect the kingdom against powerful enemies (develop a strategy against competitors), develop winning strategies, habits and practices.

 Chanakya in his world famous book

Kautilya's Arthashastra has brought out some of the key business principles and strategies.
 Kautilya's Arthashastra is the oldest book

on Management available to the world. When literally translated, it means 'Scripture of Wealth'. The main focus of the book is on creation and management of wealth.

 Kautilyas Arthasashtra gave many

principles and techniques, which once applied can prove a tremendous improvement even in our day-to-day management.
 As per Kautilya, business fundamentals

remain the same no matter what business you are in.

 He gives an insight to balance short

term/long term objectives and strategies for the business.

 Kautilya's Arthashastra is unique in

emphasising the imperative of economic growth and welfare of all in the society as well as an organisational set-up.
 He believed that ethical values pave the way

to heaven as well as to prosperity on the earth, that is, have an intrinsic value as well as an instrumental value.

 He referred the reader to the Vedas and

Philosophy for learning moral theory, which sheds light on the distinction between good and bad and moral and immoral actions.
 He extended the conceptual framework to

deal with conflict of interest situations arising from the emerging capitalism
 Kautilya tried to integrate ethics and

economics together in his view.

 It is argued that the level of integration

between economics and ethics is significantly higher in Kautilya's Arthashastra than that in Adam Smith's Wealth of Nations or for that matter in the writings of Plato and Aristotle.
 Thus, Kautilya has given significant

contribution to the field of ethics which is relevent to present business environmental set-up.

It has been said that, "So long as the Human mind remains filled with its negativities of jealousy, ego, hatred and over indulgence, so long as human beings require self control, discipline and management., 'Kautilaya's Arthashastra' will remain relevant."

A wise king trained in politics, will, even if he possesses a small territory, conquer the whole earth with the help of thebest fitted elements of his sovereignty and will never be defeated