Page 88 - NITI - Navigating Indian Traditions in Industry

Example:1

Section 135 of the Companies Act, 2013 requires certain companies to allocate a
portion of their profits towards CSR activities. This reflects the Gita’s philosophy that
leaders should focus on doing good for society, irrespective of the immediate returns.
The focus is on long-term value creation for all stakeholders, including society and
the environment.

Sustainable Business Practices and Reporting: The Gita’s principle of detached
action—doing one’s duty without being attached to outcomes—also finds resonance
in modern principles of sustainable business practices. Many businesses are now
focusing on long-term growth, sustainability, and ethical production practices. In this
context, leaders are expected to make decisions that may not always lead to short-
term profits but ensure the long-term health of the company and its environment.

Example:2
The Global Reporting Initiative (GRI) Standards provide guidelines for organizations to
report their economic, environmental, and social impacts. These standards emphasize
transparency and ethical conduct in business, in alignment with the Bhagavad Gita’s
emphasis on responsible action and the larger good.

Ethical Leadership and Anti-Corruption Laws: The Bhagavad Gita teaches
leaders to act with integrity, focusing on their duty rather than personal gain. This
concept parallels modern anti-corruption and ethical leadership standards enforced
through various laws and guidelines. Today, businesses are required to maintain high
ethical standards in governance and operations to ensure fairness and transparency.

Example:3
The Foreign Corrupt Practices Act (FCPA) in the U.S. and the Prevention of Corruption
Act, 1988 in India emphasize ethical behavior, transparency, and accountability in
business. These laws aim to prevent corruption, bribery, and unethical practices,
ensuring that leaders perform their duties with integrity—mirroring the values taught
in the Bhagavad Gita.

In Conclusion the Bhagavad Gita provides timeless wisdom on leadership, ethics,
and responsibility that remains highly relevant in the modern business world. Its
teachings on detached action, focusing on duty (dharma), and leading with integrity
align closely with contemporary corporate governance principles. Modern laws such
as CSR regulations, anti-corruption laws, and the focus on sustainability are all based
on the underlying values of ethical leadership and social responsibility that the Gita
espouses. By incorporating these principles, businesses today can ensure they are not
only pursuing profit but also contributing positively to society and the environment,
fostering long-term sustainability and ethical business practices.

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