Page 83 - NITI - Navigating Indian Traditions in Industry

05
Legal Foundations

Nyaya and Its Role in Contemporary Business Law
Dr. Sanmath Shetty and Dr. Prashant Dhopavkar

Learning Outcomes:
• Apply Nyaya’s principles of justice and fairness to business law.
• Learn the role of fairness, due process, and rights protection in corporate law.
• Understand legal compliance and ethical standards in business operations.
• Use Nyaya to inform conflict resolution and corporate ethics.

Introduction:
Dharma in the Indian Knowledge System is a Sanskrit term encompassing
righteousness, moral law, duty, and the ethical way of life. It represents a set of dynamic
principles that guide human behavior, ensuring harmony and order within society.
Unlike rigid legal codes, Dharma adapts to time, place, and circumstance, offering
a flexible framework for ethical conduct. It is deeply rooted in Indian philosophical
and religious texts such as the Bhagavad Gita, Manusmriti, and Arthashastra, where
it extends beyond individual behavior to encompass societal responsibilities, justice,
and governance. Key aspects of Dharma include ethical conduct, where truth, non-
violence, honesty, and fairness are paramount, especially in business dealings. It also
emphasizes social responsibility, urging
individuals and organizations to consider
the welfare of society in their decisions,
which parallels modern concepts like
corporate social responsibility (CSR).
Additionally, Dharma underscores moral
obligations, stressing the duty to act fairly,
avoid exploitation, and uphold integrity in
both personal and professional realms.

Nyaya refers to justice or logic and is
a philosophical school that emphasizes
rationality, logical reasoning, and the
pursuit of truth. It is centered on the
systematic analysis of arguments, evidence,

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