Kautilya’s Principles – Corporate
lessons
Kautilya’s
Arthasasthra give the basic tenets that could be applied to management of
business organizations. Let us examine some of them…
Kautilya’s
prescription
|
Management
of organizations
|
Philosophy keeps the mind steady in
adversity & prosperity.
|
Courage in a crisis and calmness
during success
|
Without control, the king perishes
even if the kingdom extends its territories.
|
‘Controlling’ is an essential
management process
|
The king has to cultivate his
intellect by associating with elders.
|
Board of Directors add collective
wisdom
|
The king has to pursue the welfare of the
subjects.
|
Work for fairness to all stakeholders.
|
Use teachers and ministers to restrain
the king from tress passing.
|
Delegation controls
|
The king has to spend one fourth of
his time studies and discussions with priests and self deliberation.
|
Vision workshops to shape the vision
before action.
|
The king has to act on principles than
on hunches. For this, he should have the qualities of listening and desire to
learn
|
Management decisions should be based
on principles. Consultations with advisors/board are necessary.
|
The king has to acquire what he does
not have, to preserve what he has and to bestow on the same on worthy
persons.
|
Wealth generation and wealth
distribution are the twin dimensions of corporate governance.
|
The king has to check the antecedents
of the employee before engaging them
|
Competence and character testing in a
recruitment process.
|
Keep the rod lifted up, ready to
strike.
|
Soft law is not cared, Hard law is
hated, Right law with effective enforcement.
|
Ancient Sastras says it all.
Arthasastras goes on to define the stipulations of proper behavior at meetings
and the right qualities of a king. These serve as a foundation for corporate governance selection of a CEO.
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