Indian Ethos for effective Corporate Governance

The topic for discussion is very relevant in current business environment. In functioning of multinational companies , managers and employees confront cultural issues which affect their relationships , productivity, efficiency and work life balance. Indian Ethos can help in solving these issues and achieving effective Corporate Governance. We have seen in the past that companies which have been doing well become sick suddenly due to unethical practices adopted by their promoters and Board Members. It is essential for management students, young and practicing managers to understand all aspects of Indian ethos and practice it in letter and spirit. Our sacred ancient literature such as Vedas, Upanishads , Ramayana, Mahabharata , Bhagwadgita , etc, depicted treasure of wisdom and principles which modern management can apply for success of the corporate . The following principles of Indian Ethos may be useful for management practitioners:

• Organisational interest is superior to self interest. A business leader is a trustee and servant of organization and stakeholders and not the owner of assets.
• A person has Immense potential energy and talents for perfection
• Karma Yoga offers principle of working for God and detachment from its fruits
• Holistic approach indicating unity between the divine individual self and the universe ‘Vasudhav Kutumbkam’.
• One must develop one’s third eye i.e. Gyan Chakshu or the Eye of Wisdom.
• Excellence at work through self motivation and self development
• Cooperation and interdependence
• Above board honesty and integrity

Corporate Governance is the system by which business corporations are directed and controlled. Corporate Governance having external as well as internal focus must address three basic issues : Ethical issues , efficiency issues and accountability issues. It has been established beyond any doubt that the organizations governed by leaders having Indian Ethos as a part of their work culture are more successful than others. Therefore , it is desirable that management students and young practitioners must adopt Indian Ethos as a part of work culture in their organization as well as personal life.

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