Page 97 - NITI - Navigating Indian Traditions in Industry

5.6.1 Ethical Leadership and Decision-Making:

The Mahabharata underscores the significance of ethical leadership, especially when
facing difficult choices. It presents leaders who, despite their own challenges, strive
to make decisions that uphold dharma (righteousness) and justice. This is particularly
relevant in modern business contexts, where leaders are expected to uphold ethical
standards, make fair decisions, and ensure that the interests of all stakeholders are
considered, especially during crises. The epic demonstrates that leadership is not
just about making profitable decisions, but also about fostering trust, fairness, and
integrity in the long term.
Example:1

The character of Yudhishthira represents ethical leadership, especially during the
Mahabharata’s pivotal moments, where he is faced with tough choices that demand
adherence to dharma. In modern corporate governance, ethical leadership is similarly
about ensuring that decisions align with the organization’s values, the public good,
and fairness to all parties involved. Leaders today are tasked with balancing profits
and ethics, ensuring that business practices remain transparent, fair, and responsible.

Mahabharata (Shanti Parva, 98.4):

“A king’s duty is to ensure justice for his people, regardless of their status, and he
must follow the path of Dharma.”

This reflects the modern expectation of corporate leaders to uphold justice and
fairness in business dealings, ensuring that decisions are made with integrity and
that all stakeholders are treated equitably. Today’s corporate leaders, much like the
rulers in the Mahabharata, are expected to lead with an understanding of their ethical
responsibilities, ensuring fairness, transparency, and the long-term well-being of the
organization and its stakeholders.

5.6.2 Corporate Dispute Resolution:
The Mahabharata also offers lessons on conflict resolution, a vital aspect of modern
corporate governance. The epic provides a rich understanding of the importance
of negotiation, mediation, and arbitration to resolve disputes, which aligns closely
with modern corporate legal practices, where arbitration and mediation are often
preferred over litigation. The Mahabharata presents various strategies for resolving
conflicts that arise between individuals, groups, and even nations. This understanding
of conflict resolution has been adapted in the corporate world, where mediation and
arbitration are key to settling business disputes in a manner that is both time-efficient
and fair to all parties involved.

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