Indian Knowledge System and Ethical Practices In Indian Corporate: An Analytical Perspective

Abstract

Values, principles, and a commitment to moral behavior are really at the heart of any responsible business. A company’s character isn’t just about the financials; it’s about the ethical standards it lives by every day. India’s ancient wisdom has long understood this, putting good governance and righteous behavior front and center in both economic and social life. Yet, despite this strong heritage, today’s business world often tells a different, more troubling story, one filled with corporate integrity and accountability failures. Ancient Indian texts—like the Vedas, Upanishads, Bhagavad Gita, and Kautilya’s Arthashastra—offer detailed advice on ethical conduct in both commerce and governance. Central to these teachings is “Dharma”—the principle of righteous duty—which shaped how ancient India viewed transactions, leadership, and institutional responsibility. This study aims to see if these lasting principles can actually help solve the ethical problems that keep popping up in modern corporate settings. Over the last three decades, India’s seen a worrying trend of corporate misbehavior. Big cases—like the Satyam accounting scandal, the Harshad Mehta securities fraud, the Sarada Chit Fund collapse, the Sahara fraud case, the ICICI Bank-Videocon loan controversy, and the Nirav Modi diamond scam—have chipped away at public trust and hurt India’s image as a growing global business player. As India aims to be a global leader, these ethical slip-ups have consequences far beyond the companies involved. This study suggests that the principles within the Indian Knowledge System, when genuinely applied (and not just paid lip service), can lead to more responsible and stakeholderaware corporate actions. Embracing these principles more broadly could boost institutional integrity within Indian businesses and contribute to a fairer, more sustainable economy.