Indian Culture and Work Organisations in Transition

Ashish Malik, Vijay Pereira

• Publisher: Routledge India
• Year: 2016
• ISBN:
  9781317232018
• Edition: 1
• Topic: Business
• Subtopic: Business Ethics
• Index: Business

This book analyses key theoretical influences on Indian culture in a business context. It shows the interactions between indigenous culture and workplace ethics which is increasingly being populated by multinational corporations. It discusses how the Indian workplace has evolved over time as well as retained some managerial practices dating back to the classical traditions of ancient India. It further demonstrates the changes brought about by globalisation, especially through information technology and business process outsourcing industries.

This volume will be useful to the scholars and researchers of business and management studies, cultural studies, Asian studies as well as human resource (HR) professionals.

1
Expanding the Vedantic virtues into business ethics

A leadership perspective¹

Balakrishnan Muniapan and Mohan Dass

Business ethics are the moral principles that guide the way a business behaves. It is an applied ethics that examines ethical problems that arise in all aspects of business conduct. The growth of interest in business ethics is due to many business scandals that had taken place worldwide.

The chapter provides analysis and some insights into Vedantic (Indian) business ethics to business leaders worldwide. Indian economy today is experiencing a rapid growth, and Indians are also making significant contribution in business leadership outside India. Therefore this chapter will be of interest to business leaders to enable them to work more effectively with Indian business leaders in India, Middle East, Southeast Asia, Western Europe and North America where there is a significant Indian population.

In the management and leadership literature written within the Indian context, authors such as Chakraborty (1993, 1995, 1999), Chakraborty and Chakraborty (2008), Sharma (1996, 1998, 1999, 2002, 2003), Krishnan (2001, 2003), Kejriwal and Krishnan (2004), Satpathy (2006, 2007), Muniapan (2005, 2006, 2007, 2008, 2009, 2010, 2014, 2015), Muniapan and Dass (2008, 2009), Muniapan and Shaikh (2007), Muniapan and Satpathy (2010), Muniapan and Rajendran (2011), Muniapan and Low (2011), Low and Muniapan (2011), Muniapan and Jalarajan (2014), Satpathy and Muniapan (2008), Satpathy et al. (2013), Parashar (2008) and others have made their contribution based on Vedantic philosophy. These scholars have made studies based on the Vedic literatures written in Sanskrit, such as the Upanishads, Ramayana, the Mahabharata, Arthashastra of Kautilya and the Thirukurral (Tamil).

The practice of ethics in business management and leadership is culture specific, as several past researches have firmly established that leadership and business ethics are deeply rooted in culture of a community and a country where it is practiced (Sharma, 2001). Researches in leadership and ethics have also established that there are other factors such as society, nature of task, technology that might also influence leadership. The Indian culture (includes religion) is greatly influenced by the Vedantic (also Vedanta) cultural tradition and philosophy (Chakraborty, 1999). The authors of this chapter emphasise that, just like the impact of Vedantic ethics in the Indian context, in every culture and tradition, different schools of thought, philosophy or religion influence the ethical decision.

Methodology

This chapter is based on the qualitative research methodology known as hermeneutics. Hermeneutics is the interpretation and understanding of ancient literatures and religious texts. Hermeneutics is a specific method for interpretation, or a specific theory of interpretation. The scope of hermeneutics also includes the investigation and interpretation not only of ancient texts but also of human behaviour which includes language and patterns of speech, social institutions and ritual behaviours (Muniapan, 2010). Hermeneutics is applied widely in fields such as philosophy, religion and theology, law, sociology and international relations.

Ethics

The term ‘ethics’ is derived from the Greek word meaning ‘moral’ or in other words, the values held by society (Holme, 2008). Ethics is a set of moral principles that distinguish what is right from what is wrong (Schemerhorn, 2008). Noor (2008) asserted that ethics also deals with values relating to human conduct on what is right and what is wrong. Samson and Daft (2009) on the other hand assert that ethics is often perceived as a grey area where there is little certainty about what is right or wrong. However, when it comes to ethical behaviour, it is important to distinguish between what is ethically right, what is ethically wrong and what is an ethical dilemma.

Business ethics

The authors define business ethics as written and unwritten codes of principles and values that govern decisions and actions within an organisation. In the business world, the organisation’s culture sets standards for determining the difference between good and bad decision-making and behaviour. In the most basic terms, a definition for business ethics relates to knowing the difference between right and wrong, and choosing to do what is right.

Business ethics is a multidisciplinary field of study. Theology, business management and philosophy are the disciplines that first came together to conduct research into business ethics. Psychology, economics, education, human resource management, accountancy and sociology, among others, have all added their contributions to the field. These developments followed as there is a need to understand how ethical business could be translated into organisational practice. These various perspectives have led to some disagreements over the objectives of studying business ethics and how these objectives should be achieved. Business ethics reflects the philosophy of business, of which one aim is to determine the fundamental purposes of an organisation.

As the business environment is getting more complex, business organ-isations are becoming more dominant, with less of governmental control; therefore a greater need for ethical practices arises (Crane and Matten, 2007). Therefore, leaders in organisations are always confronted with ethical dilemmas in making ethical decisions. The principal objective of ethics has always been to produce morally upright individual leaders with good and acceptable behaviour. Business organisations are also increasingly concerned with ethical conduct of the duties and responsibilities and their relationship with the shareholders of the company and stakeholders’ groups (Pass, 2004, cited in Muniapan and Shaikh, 2007) with the ultimate aim to provide value to shareholders and stakeholders (Ismail, 2005; Abdullah et al., 2008, cited in Muniapan and Rajendran, 2011).

Business ethics and culture

Business ethics practices often require unique approaches which are culture specific within the area of practice. Aside from culture in general, philosophy, religion and other belief systems specifically can shape business ethics.

According to Whitcomb et al. (1998), in his studies on business ethics in China, the Chinese business ethics is largely influenced by Confucianism and Taoism philosophy. Abuznaid (2005, 2009), on the other hand, asserts that in Islam the question of whether an act is ethical or otherwise is determined in the Qur’an (Islamic law) and Sunnah, literally meaning the beaten track of the prophet, and it is mostly derived from his sayings (hadith) and actions; there are no two ways about it (Alhabshi, 1993). In Malaysia, Datuk Seri Abdullah Ahmad Badawi, the fifth prime minister, promoted an Islam Hadhari or civilisation Islam, in the public sector (Swee-Hock and Kesavapany, 2006). The Islamic perspectives of ethics in the context of Middle Eastern region have also been written extensively by scholars such as Tayeb (1997) and Abuznaid (2005, 2009).

In a culture such as the Indian culture, values and ideologies across regions and communities can vary from north to south and east to west. Within the Indian management, ethics and cultural context, it is undeniable that Indians have more than 5,000 years of civilisations (Rosen, 2002, cited in Muniapan and Dass, 2008; Muniapan and Rajendran, 2011). Among these contributions, is the Vedanta or the Vedic literatures. The foremost, among these contributions, is the Vedanta or the Vedic literatures such as the Upanishads, the epics (Ramayana and Mahabharata) and the Puranas. There is also an abundance of Vedanta literatures on ethics written in Sanskrit and in various other Indian languages (Muniapan, 2007).

Ethics from Vedanta

In the Indian perspective, the Vedas comprising Rig Veda, Yajur Veda, Sama Veda and Atharva Veda form the fundamental core foundation of human life on earth. A thorough understanding and practice of these philosophies sourced from the Vedas develops spiritualism (Muniapan and Dass, 2008, 2009). The Vedanta philosophy particularly propounds that any deviation from the moral laws will be detrimental to universal and social order. The Vedanta philosophy can be classified into four guidelines for humanity and cosmic order. The first and the primary guideline is jnana, which is transcendental knowledge or absolute truth (GOD); second is karma or the right action for personal and society; third order is Upasana or worship and self-realisation; and the fourth order is Vigyan or body of knowledge from the Vedanta (Sharma, 1996). The Vedanta directives are clear for humanity to be conscious of the cause and effect principles. It is explicit that humanity is required to take the right action (be knowledgeable, be self-conscious and ethical) following the body of transcendental knowledge. In the desire for materialism and shrewd accumulation of wealth in the contemporary business world, humanities have lost their ethical practices advocated by the Vedanta philosophy. Hence, the continuance of deviation to universal and social order has resulted in the destabilisation of cosmic order (the law of karma). Following these essential philosophical teachings and practices, business operations ought to adopt the basic concepts propounded by Vedanta.

Early Western philosophical thinkers such as Max Muller insist that Vedanta has not neglected the sphere of ethics nor has a specific code of morality and set of ethics in Indian philosophical thoughts but on the contrary it is overarching in the Vedanta texts (Muller, 1894; Dasgupta, 1922). Western philosophers have found Vedanta as solutions for good ethical practices and a code of morality for business can be found in it. The Bhagvad-Gita, which presents the essence of Vedanta philosophy, further postulates the absolute oneness of all things and suggests mankind is endowed with wisdom and morality (Satpathy and Muniapan, 2008). Bhagvad-Gita also implies that equality among all living things signifies the importance of self-consciousness and acknowledges the equal acceptance of the right to live (Muniapan, 2009). Vedanta metaphysics requires the acceptance of brotherhood, respect of human dignity and eliminating the thoughts of destruction and unethical means of acquisition. The perspective from Vedanta to modern business management is that ethical codes need to be fundamental to all organisations’ excellence.

Business excellence governed by knowledge, care of duty, rationality and self-consciousness will yield good governance. There has been some criticism levelled at Vedanta philosophy for long deliberation and contemplation. The Vedanta philosophy of meditation (e.g. yoga) reflects inaction and slow decision making which may not suit the contemporary modern business models of transformational management and competitive advantage. On the contrary, the teachings of Vedanta feature a regulated life founded upon unselfishness and rational control of senses. The Vedanta (Katha Upanishad) warns mankind of uncontrolled senses. In the Katha Upanishad, a description of chariot model was made and it symbolises the charioteer intellect (as self), the body (chariot), the mind of the charioteer (reins of the horses) and the object of senses (the path). Hence an individual who has developed this ability to control his or her mind and senses is akin to be the ‘good horses of a charioteer’ making ethical decisions (Muniapan, 2010).

Mankind will develop a systematic and consistent life, with a single ultimate universal ethical consciousness rather than being business driven by passion, ignorance, and temporary inclinations of materialism. The Vedanta cultivates us to think (meditate) and act rationally for the highest good of mankind. Reflecting on our self-consciousness, our inner spirit, the right moral action is determined and not the conformity to law or external consequences. Vedanta texts from the Upanishads and Bhagvad-Gita impound upon humanity not to ignore the essential practices of morality which is regarded as being higher than offering sacrifices, visiting sacred places of worship or feeding the poor (Chakraborty, 1991).

In Bhagvad-Gita, Krishna advises Arjuna that life and action are deeper than rationality. The greatest knowledge for mankind is to be fully self-conscious of the divine spirit and perform all tasks with no self-interest. Krishna further deplores Arjuna to take moral action (even to do battle with his kinsman at the Battle of Kurukshetra). This moral action must be carried out without self-interest or personal benefit. This implies that business leaders or heads of organisations need to be aware of selfless interest when making decisions and acting upon them for the best interest of the organisations and the society at large.

Enormous amount of literature on unethical business code of conduct has been presented. Unethi...

Table of contents

• Cover
• Title
• Copyright
• Dedication
• Contents
• List of figures
• List of tables
• Foreword
• Preface
• About the contributors
• Introduction: India: a culture in transition
• 1 Expanding the Vedantic virtues into business ethics: a leadership perspective
• 2 Significance of work culture and managerial effectiveness guidelines from the Bhagvad-Gita in contemporary Indian organisations
• 3 Indigenous Indian management philosophies: key concepts and relevance for modern Indian firms
• 4 Understanding post-colonial India’s culture: a juxtaposition of modern and traditional values
• 5 Culturally integrating an Indian JV partner post-acquisition
• 6 Evolution of work culture: evidence from the IT industry
• 7 Corruption, organisations and culture in contemporary India
• 8 Beyond comparative cross-cultural dimensions on a macro-level: understanding Indian diversity in context
• 9 Prolegomena to understanding Indian culture through Husserl’s phenomenological lens
• 10 Methodological approaches and challenges to studying Indian culture
• Conclusion and future research directions