Page 84 - NITI - Navigating Indian Traditions in Industry

and reasoning to ensure fair and just judgment. Nyaya provides a framework for
evaluating disputes, where decisions are based on truth, fairness, and logical analysis
rather than arbitrary or biased judgments. Key aspects of Nyaya include rational
decision-making, which involves critical thinking and a thorough examination of facts
before reaching a conclusion, ensuring that judgments are just and fair. It is also
closely tied to judicial processes, where the role of a judge is to apply logical reasoning
to deliver impartial decisions grounded in evidence. Above all, Nyaya guarantees
justice and equality, ensuring that all individuals are treated equally under the law,
promoting fairness and impartiality in legal proceedings.

Dharma and Nyaya’s Relevance in Modern Corporate Governance and
Business Laws
The principles of Dharma (righteousness, duty, and ethical conduct) and Nyaya
(justice, logical reasoning, and fairness) from the Indian Knowledge System are
deeply intertwined and continue to influence modern business practices. These ancient
concepts provide a framework for fostering transparency, accountability, and fairness,
making them highly relevant to contemporary corporate governance and business
laws.

5.1 Arthashastra of Kautilya: Foundation for Corporate Governance and
Business Ethics
The Arthashastra of Kautilya (also known as Chanakya) is one of the most influential
ancient texts in the fields of governance, economics, and law. It is often regarded as
a comprehensive manual for running a kingdom but has been equally influential in
shaping the modern concepts of corporate governance, ethics, and business law.
Kautilya’s teachings emphasize the importance of efficient administration, ethical
conduct, and economic principles, many of which are directly applicable to modern
corporate governance and business practices.

5.1.1 Corporate Governance and Business Ethics:
The Arthashastra lays a detailed framework for governance, focusing on efficiency,
accountability, and ethical behavior. Kautilya stresses the importance of creating a
structured system of checks and balances, ensuring that rulers or business leaders
maintain transparency and avoid corruption. The key values derived from the
Arthashastra—such as the need for impartiality, the avoidance of conflicts of interest,
and the maintenance of ethical standards in business practices—are central to modern
corporate governance.

In the realm of corporate law, Kautilya’s emphasis on the role of the ruler (or leader)
in maintaining ethical conduct and ensuring fairness and justice in all dealings

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