Page 24 - NITI - Navigating Indian Traditions in Industry

1.3.2. Strategic Vision and Purpose: Aligning Organizational Goals with a
Higher Purpose
Modern Management Principle: Strategic vision is crucial in modern business
management. The Balanced Scorecard (Kaplan & Norton, 1992) integrates financial
and non-financial goals, helping organizations align their strategic vision with overall
performance. Modern management emphasizes creating a clear mission and aligning
the organization’s purpose with societal contributions and long-term success.

Linkage to Vedic Wisdom: Vedic philosophy emphasizes aligning one’s actions with
a higher, moral purpose. The Bhagavad Gita speaks of aligning individual actions
with Dharma (righteous duty), which is deeply connected to the well-being of society.
Leaders who embrace purpose-driven leadership balance business success with
societal welfare, much like the strategic management practices of today.
In Kautilya’s Arthashastra, there is a strategic focus on creating wealth for the
state while maintaining stability and prosperity. This mirrors contemporary strategic
management, where business leaders balance profitability with long-term prosperity
and stability for all stakeholders.

1.3.3. Ethical Governance and Corporate Social Responsibility (CSR)

Modern Management Principle: Ethical governance has become essential in the
modern business world. Agency Theory (Jensen & Meckling, 1976) emphasizes
aligning the interests of stakeholders with organizational leadership, while Corporate
Social Responsibility (CSR) has grown to include not just financial performance but
also social and environmental contributions. Companies today are expected to adopt
ethical business practices that benefit society and the environment.
Linkage to Vedic Wisdom: The Dharmashastra (Manusmriti) emphasizes that leaders
must uphold Dharma and ensure their actions align with righteousness, contributing
to the common good. This aligns with modern corporate governance principles,
where ethical management practices ensure transparency, fairness, and responsibility
to all stakeholders.

The Bhagavad Gita encourages leaders to act selflessly, focusing on societal welfare
while balancing personal ambitions. This aligns with modern CSR, where companies
are expected to take responsibility for their impact on society and the environment.

1.3.4. Human Resource Management and Empowerment
Modern Management Principle: Human Resource Management (HRM) focuses on
recruitment, training, and developing employees to meet organizational objectives.
Theories like Maslow’s Hierarchy of Needs (1943) and Herzberg’s Motivation-
Hygiene Theory (1959) delve into employee motivation and engagement. HRM today

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