Kautilya &

Business Ethics

Presented By :-

Amit Kumar Ojha()

Anurag Kumar (8107)
Chandan Kumar ()
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
shareholder’s 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 whistle-blowers 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 world’s 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.
 Kautilya’s 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”