Corporate from Ancient Indian Scriptures : An Overview*

Introduction Corporate governance is the broad term used to describe the processes, customs, , and institutions that direct the organizations and corporations in the way they act or administer and control their operations. It works to achieve the goal of the organization and manages the relationship among the stakeholders including the board of directors and the shareholders. Corporate governance means to steer an organization in the desired direction by determining ways to take effective strategic decisions. It also deals with the accountability of the individuals through a mechanism which reduces the principal-agent problem in the organization. Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral, as well as ethical environment. In other words, the heart of corporate governance is transparency, disclosure, accountability and integrity. It is to be borne in mind that mere legislation does not ensure good governance. Good governance flows from ethical business practices even when there is no legislation. Good Corporate Governance : Boon to the Organization A culture of good corporate governance benefits the organization in various ways. Some key benefits are listed as below: • In developing appropriate strategies that would help the organization to attain results in the achievement of stake holder objectives. • To attract, motivate and retain the talented resources in the organization. • In creating a secure and prosperous operating environment and improving operational performance within the organization. • To manage and mitigate risk and protecting and enhancing the organization’s reputation. Governance from Indian Scriptures : The concept of corporate governance in has ancient connections. There is a great deal of similarity in the governance structures of the ancient kingdoms and modern corporations as is evident from our ancient text and scriptures like , , Somadevaneetistuti, Baharspatya Neetistuti, etc. which focuses on good governance. All , Vedas, and the Epic Kavyas like , and Bhagwad Gita emphasize the essence of being followed from within, be it Individual or be it the King or be it the whole kingdom. Further, all religious teachings or philosophical writing contain some directives on governance. Ramayana: The Ramayana, the saga of Lord ’s life written by Maharishi Valmiki, is widely acclaimed as among the greatest of all Indian epics. In fact, this famous Grantha carries useful tips on ethics and values, statecraft and , and even general and human resources .

* Directorate of Academics Views expressed in the Article may not express the views of the Institute.

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Aishwarya, Aishwarya, Shri S.S.S Jain College for

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nd Dr. Reji M.A of St. Peters College Ernakulam, Kolenchery, . of M.A Peters St. nd Reji Dr. Nagar, Nagar, Chennai and Ms. Sima Kumari, Assistant Professor, Delhi school of

‘Corporate ‘Corporate Governance in Vedas and Upnishad’ by women, T. Research. Studies and Professional ‘Influence of Ancient Indian Scriptures Santosh T.R a on Corporate Governance Framework’ by Mr.

  STUDENT COMPANY SECRETARY | SECRETARY COMPANY STUDENT References in the corporate governance framework, but also universally applicable in the formation of various of formation the in applicable universally also but framework, governance corporate the in principles. management