Page 94 - NITI - Navigating Indian Traditions in Industry

modern business practices. Today’s CSR initiatives, environmental regulations, labor
laws, and ethical business frameworks are deeply rooted in these ancient teachings,
reinforcing the importance of businesses acting as responsible stewards of society, the
environment, and the economy. By integrating these principles into their operations,
businesses can not only achieve financial success but also contribute to the greater
good, ensuring sustainable development and social equity.

5.5 Manusmriti: Foundation for Corporate Law and Ethical Behavior
The Manusmriti, one of the oldest and most influential texts in Hindu law, addresses
the principles of ethics, social duties, justice, and fairness in human relations. Although
it has been controversial in modern times due to its social structure and views on
caste, its teachings on justice, fairness, and the importance of societal roles continue
to influence contemporary corporate ethics and laws. The Manusmriti highlights the
ethical responsibilities of individuals and rulers in governance, laying the foundation
for just and fair treatment in business practices, which align with modern corporate law
principles such as anti-discrimination laws, labor rights, and corporate governance.

5.5.1 Corporate Ethics and Justice:

The Manusmriti emphasizes that ethical conduct, fairness, and justice are vital in
all aspects of life, including business. It promotes the idea that business practices
should be rooted in fairness and that all individuals should be treated with dignity
and respect. This is highly relevant to modern business laws, particularly regarding
anti-discrimination, labor rights, and the enforcement of corporate governance
regulations. The manuscript’s focus on societal roles and duties has also influenced
modern perspectives on corporate responsibility, particularly in how organizations
should act as stewards of both individual rights and societal welfare.

In contemporary corporate law, the ethical principles of the Manusmriti are reflected in
various legal frameworks that protect the rights of individuals in business environments,
ensure fairness in dealings, and mandate the fair treatment of employees, consumers,
and stakeholders. These laws promote justice, accountability, and transparency in
business conduct, closely echoing the ethical principles prescribed in the Manusmriti.

Manusmriti (8.8):
“In the welfare of society, each individual has a role to play, and their rights should
be safeguarded.”

This verse highlights the importance of ensuring that each individual is treated fairly
and their rights are protected, a concept that closely mirrors modern corporate law’s
focus on social justice, human rights, and employee protection. It underpins the
principle that a business must not exploit its stakeholders, including its employees,
customers, and even competitors, but must instead act as a responsible entity that

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