January 2013 | Vol.

5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

In this Issue
Recreating Capitalism
Editorial

The Central Defect

Of hardcore capitalism.

The Emerging Perspectives

New thinking for reinventing capitalism.

The Indian Social Synthesis

Indian social vision and its implications for the future of capitalism.

Restructuring Capitalism
In the light of Indian synthesis.

Can Business be done with Spiritual Attitude

Wealth has often been regarded as a spiritual obstacle. Some even take a vow not to touch money. Is it possible to possess wealth and still pursue spiritual growth?

The Route to Dharmacracy

Business is no longer a mere engine to produce dollars. A higher aspiration seems to be the new trend in business.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

Recreating Capitalism
Editorial
The forward march of Nature in humanity is mostly invisible except to the discerning eye. When we examine deeply and closely the emerging trends in human thought and events, we can see Nature is pushing human mind and life, though a combination of internal reflection and external circumstances, to move beyond self-interest towards a more unitive and collaborative society. The first important trend is rethinking of capitalism which is the modern gospel of self-interest. The traditional theory of capitalism legitimized self-interest, competition, material or economic prosperity as valid motives of development. With the collapse of communism many capitalist thinkers croaked triumphantly over the ultimate victory of their gospel. But the collapse of Lehman Brother and the financial meltdown which followed sent a shock wave into the major citadels of capitalism and awakened capitalist thinkers to the limitations of their theories. After this event many progressive minds in business and economics are questioning this gospel of selfinterest. These new perspectives are more or less in the right direction. For example, Christopher and Julia in their article in Harvard Business Review hit the right spot when they say that the purpose of commerce is not making money but to better peoples welfare and the greatest good of the greatest number. Here comes the importance of Indian synthesis which can give a deeper orientation for restructuring capitalism in an evolutionary perspective.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

The Central Defect

Sri Aurobindo The main defect of hardcore capitalism is its more or less exclusive emphasis on the economic motive and financial indicators like GDP as the measure of human development. And the result is a society and culture which tends to convert every human activity, including those activities which express higher values like education, art or even spirituality, into a business with a commercial motive. The passages in this article are written somewhere in the 1940s and at present the situation may be changing. New values like Corporate Social Responsibility are entering into business and there is a rethinking on capitalism which is discussed briefly in the next article of this issue. However this new thought is still on the fringe and not yet become part of the core values of capitalism. So, what is said in this article is still valid because commercial motive still dominates capitalistic societies and economies.
Man, the half infrarational being, demands three things for his satisfaction, power, if he can have it, but at any rate the use and reward of his faculties and the enjoyment of his desires. In the old societies the possibility of these could be secured by him to a certain extent according to his birth, his fixed status and the use of his capacity within the limits of his hereditary status. That basis once removed and no proper substitute provided, the same ends can only be secured by success in a scramble for the one power left, the power of wealth. Accordingly, instead of a harmoniously ordered society there has been developed a huge organised competitive system, a frantically rapid and one-sided development of industrialism and, under the garb of democracy, an increasing plutocratic tendency that shocks by its ostentatious grossness and the magnitudes of its gulfs and distances. These have been the last results of the individualistic ideal and its democratic machinery, the initial bankruptcies of the rational age. For this ideal, this conscious stress on the material and economic life was in fact a civilised reversion to the first state of man, his early barbaric state and its preoccupation with life and matter, a spiritual retrogression with the resources of the mind of a developed humanity and a fully evolved Science at its disposal. As an element in the total

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complexity of human life this stress on a perfected economic and material existence has its place in the whole: as a sole or predominant stress it is for humanity itself, for the evolution itself full of danger. *** This economic barbarism is essentially that of the vital man who mistakes the vital being for the self and accepts its satisfaction as the first aim of life. The characteristic of Life is desire and the instinct of possession. Just as the physical barbarian makes the excellence of the body and the development of physical force, health and prowess his standard and aim, so the vitalistic or economic barbarian makes the satisfaction of wants and desires and the accumulation of possessions his standard and aim. His ideal man is not the cultured or noble or thoughtful or moral or religious, but the successful man. To arrive, to succeed, to produce, to accumulate, to possess is his existence. The accumulation of wealth and more wealth, the adding of possessions to possessions, opulence, show, pleasure, a cumbrous inartistic luxury, a plethora of conveniences, life devoid of beauty and nobility, religion vulgarised or coldly formalised, politics and government turned into a trade and profession, enjoyment itself made a business, this is commercialism. To the natural unredeemed economic man beauty is a thing otiose or a nuisance, art and poetry a frivolity or an ostentation and a means of advertisement. His idea of civilisation is comfort, his idea of morals social respectability, his idea of politics the encouragement of industry, the opening of markets, exploitation and trades following the flag, his idea of religion at best a pietistic formalism or the satisfaction of certain vitalistic emotions. He values education for its utility in fitting a man for success in a competitive or, it may be, a socialised industrial existence, science for the useful inventions and knowledge, the comforts, conveniences, machinery of production with which it arms him, its power for organisation, regulation, stimulus to production. The opulent plutocrat and the successful mammoth capitalist and organiser of industry are the supermen of the commercial age and the true, if often occult rulers of its society. The essential barbarism of all this is its pursuit of vital success, satisfaction, productiveness, accumulation, possession, enjoyment, comfort, convenience for their own sake. The vital part of the being is an element in the integral human existence as much as the physical part; it has its place but must not exceed its place. A full and wellappointed life is desirable for man living in society, but on condition that it is also a true and beautiful life. Neither the life nor the body exist for their own sake, but as vehicle and instrument of a good higher than their own. They must be subordinated to the superior needs of the mental being, chastened and purified by a greater law of truth, good and beauty before they can take their proper place in the integrality of human perfection. Therefore in a commercial age with its ideal, vulgar and barbarous, of success, vitalistic satisfaction, productiveness and possession, the soul of man may linger a while for certain gains and experiences, but cannot permanently rest. If it persisted too long, Life would become clogged and perish of its own plethora or burst in its straining to a gross expansion. Like the too massive Titan it will collapse by its own mass, mole ruet sua.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

The Emerging Perspectives

M.S. Srinivasan After the financial meltdown in US many thinking minds in economics and business are beginning to recognise the limitations of traditional capitalism and trying to give a new direction to capitalistic thought and practice. This article presents a brief summary of this rethinking of capitalism.

Key Perspectives
Crisis in capitalism; Deeper Malady and the Emerging Correctiveness; message for the future.

The Crisis in Capitalism

In a conference on rethinking capitalism a group of leading scholars, researchers entrepreneurs and corporate executives sat together to discuss a debate on causes behind and remedies for what they felt as the emerging crisis in capitalism. They identified the following factors as the source of the crisis and danger for the effective working of market capitalism: 1. 2. 3. 4. 5. 6. 7. 8. 9. Fragility of the financial system Breakdown in Global Trade Inequality in income Migration Environmental Degradation Failure of the Rule of Law Decline of Public Health Rise of State Capitalism Radical movements, terrorism, war

10. Spread of pandemics 11. Inadequacy of institutions

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What is the remedy? Reporting on the deliberations of the conference cited above in Harvard Business Review, Joseph Bower, Herman Leonardo and Lynn Paine argue that the corporate world must take an activist role in solving the problems confronting capitalism because most of the national governments are weak and do not have the will or the capability to solve these problems. The corporate world is in a better position in terms of resources, skill and expertise to solve the maladies and give a new direction to capitalism. Corporations have to collaborate with the government and other institutions to provide solutions which can pull capitalism out of its crisis. However, in this approach or solution there is not yet a radical questioning of the tenets of capitalism. Most of the threats to capitalism listed in the HBR article are external and not regarded as intrinsic to capitalism. Market capitalism combined with western-type of democracy is still regarded as the best approach to prosperity and a better society. However, the authors of the article admit the failure of capitalism to address the problem of equity: The growing gap makes a mockery of the idea that growth benefits all. There is also recognition that business must take an active interest in solving the societys problems and the need for a collaborative approach to solving societys problems which are not part of traditional capitalism. Here comes the importance of another article in Harvard Business Review, where, Christopher Meyer and Julia Kerby present a wider and a more incisive criticism of the two major tenets of capitalism: Competition and the primary of financial indicators like Return on Equity and Gross Domestic Product (GDP). In this article, Meyer and Jerkins make the following critical points on the present condition of capitalism: Obsessive and exclusive emphasis on competition and financial parameters like ROI and GDP has lead to misdirected priorities in capitalist economies. Financial gain is not the soul of capitalism. The overall objective of commerce is to better peoples welfare or in other words, the greatest good of greatest number of people. Financial indicators like GDP or ROI cannot be the sole measure of human wellbeing. If they are used as a part or a limb of a wider system of measurement of human wellbeing that includes non-financial parameters like education, health, then it helps. But if financial parameters become the sole aim of capitalism it derails the whole system. Similarly, the real source of an economys vitality is not competition but innovation. Competition can help innovation but strategic collaboration can also be a fertile source of innovation.

The Deeper Malady and the Emerging Correctives

But the factors we have discussed so far are not the root cause of the crisis facing capitalism. The real malady lies deeper. According to Charles Hardy, the well known British management thinker, the real malaise within capitalism is the lack of a higher purpose beyond selfishness and greed; capitalism is just a mechanism without a soul. As Hardy explains: Communism had a cause-which was, ideally, a sense of equality and prosperity for all, that all people were and could be equal-but it didnt have an appropriate mechanism to deliver that cause. Whereas capitalism is a mechanism, but it seems to me that it lacks a cause. Is it all just to make ourselves rich, or is there more to life

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than that? Because when we get the money, that seldom seems to be enough. The question is, are we in danger of throwing the baby out with the bathwater? The bathwater is the inefficiency and intolerance of communism, while the baby is its idealism. And that is what capitalism is sadly lacking. There is a cancer in the heart of capitalism. It is the lack of a cause that can stir the heart. Whats it all for and for whom? The first stage in rethinking capitalism is to be absolutely clear about what its all for and who its for. I dont think the answer that its for the financiers i.e. the shareholders is a very adequate answer at all, either practically or morally. Nevertheless, capitalism is perhaps trying to recover its soul through the new values emerging in business like ethics, corporate social responsibility environmental sustainability, which are becoming some of the new imperatives in business. A recent issue of Harvard Business Review asks in its front page, what great companies do differently and answers: They create value for society, solve the worlds problems and make money, too. The editorial of this issue of HBR sums up the new thinking emerging in business and management: Any manager will tell you that his or her company stands for more than just the bottom line: It takes care of its workers, limits its carbon emissions, improves the welfare of its communities. Notions of good practice change over time. In the early 1900s Henry Ford fattened his workers paychecks to help turn them into consumers. Later, big companies began rewarding employees for their loyalty with jobs for life. In recent years corporate social responsibility became an imperative. Now, in the information age, when we can more easily measure our effect on the world around us, companies are increasingly taking responsibility for their big footprints. Perpetually running counter to all this, of course, is Milton Friedmans famous observation that the only true responsibility of business is to make money. In the same issue, a leading management thinker, Rosabeth Mass Kanter writes, Articulating a purpose broader than making money can guide strategies and actions, open new sources of information and help people express corporate and personal values in their everyday work. Another well-known management Guru, Gary Hamel goes still further into a more or less spiritual domain when he argues that the traditional goal of maximizing wealth is inadequate in many respects because it lacks the power to fully mobilise human energies and therefore tomorrows management practices must focus on the achievement of socially significant and noble goals and deeper soul stirring ideals such as honour, truth, love, justice and beauty which have long inspired human being to extraordinary achievements. Similarly, the motive of self-interest, as the source of efficiency, productivity or prosperity is also now coming under critical questioning in the light of new discoveries in science. The traditional capitalist thinkers justified selfinterest and competition based on old scientific notions that human nature is inherently selfish and the Darwinian struggle for existence and survival of the fittest is the best way to growth and prosperity. However according to new science human nature is not as selfish as it thought to be in old science. There is a less selfish and more cooperative and altruistic element in the human genetic nature. This new scientific perspective is entering into business and management thinking. Yochai Benkler, Professor for Entrepreneurial Legal Studies at Harvard Law School, in his article, Unselfish Gene after discussing emerging scientific discoveries related to collaboration states:.

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For generations modern western cultures have operated on the assumption that human nature is intrinsically selfish. But now the tide is starting to turn. In fields such as evolutionary biology, psychology, sociology, political science and experimental economics, researcher are seeing evidence that the urge to selfless action or collaborate is as much intrinsic to human nature as selfishness and human being are more cooperative and less selfish that we have assumed. Another interesting new discovery in science which goes against capitalist notions of life and nature is the new ecological view of nature. According to modern ecology Nature is not merely a ruthless and competitive struggle for existence as Darwin assumed it to be. In Nature, the competitive struggle for existence is only a subordinate or secondary element in a predominantly cooperative and interdependent process where the waste of one organism becomes the food for another. Fritjof Capra, physicist and author, elaborating on the implications of this new ecological perspective for business and management, states: A sustainable business organization will apply this principle to cooperation and partnership along product cycles and countless other ways, both internally within the company and industry wide. Here we encounter again the basic tension between economics and ecology that we need to overcome. Economics deal with quantity, competition, expansion; ecology deals with quality, cooperation, conservation.

The Message for the Future

The message or warning of all these new perspectives on capitalism may be summed up in the following words: If capitalism wants to align itself to these higher laws of human and universal Nature, it has to discard its predominant orientation towards competition and self-interest and uplift its motives towards cooperation, partnership and altruism.

The author is a Research Associate at Sri Aurobindo Society and on the editorial board of Fourth Dimension Inc. His major areas of interest are Management and Indian Culture.
Courtesy: VILAKSHAN, Journal of Xavier Institute of Management [partially reproduced with some modifications.]

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

The Indian Social Synthesis

M.S. Srinivasan The previous article in this issue discusses briefly the emerging perspective on capitalism and its message for the future. The Indian social synthesis may perhaps provide a more holistic vision for restructuring capitalism. This article examines this ancient synthesis and its implications for reinventing capitalism.

Key Perspectives
Dharmic order; dimensions of dharma; four organs of society; message for capitalism.

The Dharmic Order

The Indian way of thinking is based on the concept of Dharma which means in a simple language, laws of life and the values, ideas or principles or purpose derived from these laws. In this Indian perspective, Dharma is the basis for morality and also values, which means for deciding what is right and good in all matters. All that is in concord with Dharma lead to harmony, progress, well-being, enlightenment and therefore has to be consciously cultivated. All that is contrary to dharma leads to darkness and misery and therefore have to be shunned.

The Dimensions of Dharma

There are three dimensions to Dharma. First is the universal and eternal dimension, Sanatana Dharma, which is the highest laws, aims, values and ideals of human development, common to all humanity, like truth, beauty, goodness, unity, interdependence, harmony, progress, perfection. The second is the unique, specific or individual dimension, swadharma. Every individual and group and every human activity like politics or economics or social phenomena like capitalism or socialism is or has its own swadharma derived from its unique nature, temperament, purpose or historical evolution. Every individual, group or activity has to consciously progress towards the highest

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ideals of universal dharma, but each in its own way according to its unique swadharma. The third aspect of Dharma is the Yugadharma which means dharma of the age or in a wider view dharma of the contemporary world, like for example, globalism. The right course action, dharma, at any given situation or span of time has to be determined by a careful consideration of all the three dimensions of dharma. In this dharmic vision, human society is only a framework for the mental, moral and spiritual growth of the individual and community. This higher growth or evolution is achieved by a progressive subordination, renunciation or self-giving of personal or corporate interests and goals to more and more universal and impersonal goals which belongs to the common good of all or derived from universal dharma. Each individual or community has to grow by following its own unique swadharma, in complementing harmony with the swadharma of others, contributing to the common good of all and ascending progressively towards the universal dharma.

The Four Organs of Society

According to Indian thought, human society is made of four organs: Culture, Economy, Polity and Work-force. The dharma of culture is to provide the ideas, ideals, values and the path of right living, dharma, which lead to the mental, moral, aesthetic and spiritual development of the individual and community. The dharma of polity is to enforce, establish and sustain dharma in society. The dharma of the economy is to create wealth and use it for the dharmic well-being and progress of the society. And the dharma of the work-force is to provide the physical energy and skill for the material realization of dharma in society. The Indian ideal of social development is a harmonious, mutually complementing and balanced growth of the four organs of the society organized around the ideals of dharma. Let us now reexamine capitalism in the light of this Indian synthesis and the new rethinking which we have discussed earlier.

The Message for Capitalism

The Indian thought recognized self-interest and enjoyment of wealth and power, Artha and Kama, as part of the legitimate four-fold motives or aims of life. But they are not regarded as the highest motives of life. Beyond Artha and Kama there are the motives and aim of dharma and moksha, which means mental, moral and spiritual development. We must note here that Indian thought never rejected or condemned the seeking for wealth, power, enjoyment or even self-interest, like many other ascetic religions. Upto a certain stage in human development, these motives help the individual and community to raise from the tamasic inertia of the physical being to the dynamic throb of life and brings vital energy, vigour and prosperity to the economic, social and political life. But if they are pursued exclusively, as if they are the only motives and aims of life, then it leads to mental, moral and spiritual degenerations of the individual and community which ultimately leads to physical and vital decline. For a system which pursues exclusively Artha-Kama motives without any mental, moral or spiritual ideals is a closed system subject to the law of entropy, progressive disintegration. So for the higher evolution of an individual, community or a system, the Artha-kama motives of power, wealth, enjoyment and self-interest have to be subordinated to the mental, moral and spiritual motives and aim of life belonging to the dharma-moksha domains. So for the higher evolution of capitalism, it has to discover a higher motive beyond self-interest.

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The new values emerging in management like corporate social responsibility, environmental sustainability or even customer service can provide such a dharmic elevation to capitalism. If serving the society and customer becomes the dominant aim of business it helps capitalism to raise beyond narrow corporate self-interest and greed to a higher dharmic level. Similarly, according to Indian thought, human nature is not entirely a mass of self-interested narrowness. In every human being there is a higher mental, moral and spiritual nature which seeks for higher values like truth, beauty and goodness and capable of selfless action. This higher nature may be underdeveloped, weak, veiled or hidden behind the selfish and greedy lower nature made of the physical and vital ego, but it is there in every individual. As we have discussed earlier, the new scientific perspectives on human nature are moving closer to this Indian view. However according to Indian thought, this higher nature in human being can be consciously cultivated and brought forward in the individual or collectivity through appropriate education, inner and outer discipline and creating an external environment favourable to its growth. This is the path for the higher evolution of the individual or a group or any human activity or system of thought or practice. Capitalism, in order to progress further, has to incorporate this deeper Indian insight on human nature and the new scientific perspective on the Unselfish Gene into its system of thought and practice. These new or higher motives emerging in business like for example CSR can be misused in a manipulative or self-serving manner. But this is unavoidable because there is a corrupting element in human nature which can twist or distort even the noblest urges. Secondly, self-interest is an obstinate and subtle thing which is difficult to eliminate. These dark spots in human consciousness can be eliminated entirely only in a spiritual consciousness beyond mind or under its direct and conscious influence in human nature. But in the course of our human evolution, we have to grow towards this spiritual aim by developing the nobler, sattwic mind which can subordinate its self-interest to the larger or common good, which is a dharmic movement. The new motives emerging in business represent this sattwic evolution.

The author is a Research Associate at Sri Aurobindo Society and on the editorial board of Fourth Dimension Inc. His major areas of interest are Management and Indian Culture.
Courtesy: VILAKSHAN, Journal of Xavier Institute of Management [partially reproduced with some modifications.]

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

Restructuring Capitalism
Nivas A holistic vision for incorporating higher values of the Indian synthesis into capitalism in the light of an evolutionary perspective.

Key Perspectives
Competition and collaboration; stages of inner awakening; higher evolution of capitalism.

Competition and Collaboration

The Indian mind perceived the unity, mutuality and interdependence of all life and came to the conclusion that a harmonious collaboration between the various organs and limbs of the society, each contributing to the common good of all, is the path to attune the individual and collective life to this higher dharma of life. In other words, Indian thought perceived harmony, collaboration and social responsibility as the best path to higher evolution and progress. However we have to look at competition and cooperation in a wider evolutionary perspective and in the context of the contemporary corporate world. Here comes the relevance of the Indian concept of Yugadharma, which means dharma of the present times. We have to take into consideration the facts and experiences of the contemporary world in arriving at a new synthesis. In the evolutionary ladder, mutuality, harmony and cooperation are undoubtedly the higher values which lead to sustainable development and competition belongs to the lower levels of development. However, cooperation can become truly creative and effective only when the individual and the collectivity attains a certain level of inner moral development or when it becomes a pragmatic necessity for the survival and success of the individual or a group. And until this happens competition is helpful. We must look objectively at the facts of nature as well as human life to understand the role and advantages of competition.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

In the initial stages of human development, competition develops survival skills and the faculties of the pragmatic mind for adaptation and innovation. It awakens the inert physical man to the throb of life, forces him to face the difficulties and challenges of life and as a result helps him to progress from the physical to vital level. It also helps him to progress further by awakening the other vital motives of achievement, enjoyment, expansion, conquest. But if these vital motives are not kept in check or subordinated to a moral sense for the well-being of others and the community as a whole, then it leads to all the evils of traditional capitalism, which we see in western society like inequality, overconsumption, and environmental degradation. On the positive side we cannot deny that free enterprise and competition, wherever it is allowed to function without much government control, create rapid economic progress and prosperity. Moreover competition in terms of quality, cost and innovation is beneficial to the customer. Similarly, if firms compete with each other in terms of employee well-being, social and ecological responsibility and customer service, then it is beneficial to the community as a whole. So what is needed is an awakening in every section of the human society to the unity mutuality and interdependence of life, in man and Nature. In a life-system governed by the laws of unity and interdependence, the wellbeing of each part is depended on well-being of others and the wellbeing of the whole. When this awakening and recognition is there, then much of the harmful forms of competition will disappear and there will be a greater urge among the individuals and the groups towards cooperation for the well-being and progress of the greater whole.

The Stages of Inner Awakening

This inner awakening happens in three stages. In the first stage when the individual or community is exclusively focused on its own self-interest, it cannot think beyond competitive struggle for survival, expansion and selfaggrandisment by whatever means. As the human organism progresses further and awakens to the interdependence of life and begins to become aware that its self-interest can be better secured by harmonizing it with the interest of others in a win-win situation, then competition is subordinated and replaced by mutual accommodation. In this stage, this subordination or accommodation is predominantly pragmatic for a better realisation of self-interest. As the human organism progresses further and becomes aware of the systemic wholeness of life and understands how the wellbeing of each individual part depends on the wellbeing of the larger whole, then it is willing to subordinate its self-interest for the sake of the progress and wellbeing of the whole with a greater understanding of the laws of life. This is the stage in which the concept or ideal of social responsibility becomes a living force in the individual and communal life. Moreover, in this stage, the individual human organisms do not insist on competing with other individuals but willing to cooperate with other individuals for the progress and wellbeing of the whole. Modern corporate world is tentatively entering into the second and third stage. This is the reason why concepts like social and ecological responsibility, win-win approach, partnership, co-creation and alliance with competitors are increasingly heard and experimented in modern management theory and practice. There is one more stage, the fourth, which may be a little far away from the present condition of humanity. It is the stage when the consciousness of humanity as a whole becomes more and more aware of the Oneness of all existence and as a result there is a spontaneous mutual self-giving.

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These four stages of evolution from the stage of competition based on self-interest to the highest stage of self-giving happens through a process of natural evolution aided by a combination of external circumstances, education, thought and culture. But this natural process of evolution can be made fully conscious and accelerated by awakening the individual and the community to the higher laws of unity and the four stages of growth. When our individual and communal life becomes conscious of these greater truths of life, then, keeping the highest ideal constantly in the background of our mind, we can progress consciously from where we are at present to the next higher stage, using appropriate educational and motivational strategies.

The Higher Evolution of Capitalism

Capitalism as a system of thought and practice has to figure out how to consciously traverse these four stages of evolution. The new rethinking in business, management and economics represent the beginning of an evolutionary growth from a predominantly competitive paradigm to a more collaborative growth. This evolution was affected by a combination of external circumstances, critical thinking and reflection. There is at present a growing recognition of the pragmatic interdependence of business and society and as a result the concept of a corporate social responsibility (CSR) is on the threshold of becoming a core value of business. The next step in evolution requires a clear understanding of the deeper, moral and spiritual foundations of CSR, which is the Indian insight into the unity and interdependence of all life. The corporate world has to recognise that interdependence of business and society is not merely pragmatic or the result of the present global environment but part of the highest laws of life, Dharma. The entire creation from the atom and molecule and plant, animal and human being are linked together in an interdependent harmony and unity and a still deeper Oneness of being and consciousness of an eternal Reality which is within our own being as our highest universal Self. In other words, the unity of all life in the oneness of our own self, which means to feel all life as a part of our own self. The pragmatic consequences of this fundamental law may be described in the following words: long term wellbeing and progress of every human organism, individual and communal, depends on the well-being and progress of all other organisms, human and natural, and that of the larger whole of life of which it is a part. This Indian insight and its pragmatic consequences have to be incorporated into education, learning and strategy of all the economic, business and corporate systems. This intuition of unity in thought and feeling, leading to an inner identification with people, community and nature, flowing outwardly in caring and compassionate action is the true and lasting foundation for collaboration, corporate responsibility and environmental sensibility. Interestingly some of the new thought on ecology and environment is moving towards these Indian perspectives. For example, physicist and author, Fritjof Capra writes: Within the context of deep ecology, the view that values are inherent to all of living nature is grounded in the deep ecological or spiritual experience that nature and self are one and quotes from Arne Naess, the founder of the deep ecology movement. Care flows naturally if the self is widened and deepened so that protection of free Nature is felt and conceived as protection of ourselves.... Just as we need no morals to make us breathe... so if yourself in the wide sense embraces another being, you need no moral exhortation to show care... you care for yourself without feeling any

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moral pressure to do it... if reality is like it is experienced by the ecological self, our behaviour naturally and beautifully follows the norms of strict environmental ethics. [Capra F, 1997]

The author is a student and practitioner in the path of integral yoga.

Courtesy: VILAKSHAN, Journal of Xavier Institute of Management [partially reproduced with some modifications.]

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

Can Business be done with Spiritual Attitude

Sri Aurobindo The traditional religious conception views money-making and God-seeking as incompatible pursuits. But in this letter to a disciple Sri Aurobindo explains that in an integral spiritual perspective, spiritual growth does not depend so much on the outer act but on the inner attitude.
I may say, however, that I do not regard business as something evil or tainted, any more than it is so regarded in ancient spiritual India. If I did, I would not be able to receive money from X or from those of our disciples who in Bombay trade with East Africa; nor could we then encourage them to go on with their work but would have to tell them to throw it up and attend to their spiritual progress alone. How are we to reconcile X's seeking after spiritual light and his mill? Ought I not to tell him to leave his mill to itself and to the devil and go into some Ashram to meditate? Even if I myself had had the command to do business as I had the command to do politics I would have done it without the least spiritual or moral compunction. All depends on the spirit in which a thing is done, the principles on which it is built and the use to which it is turned. I have done politics and the most violent kind of revolutionary politics, ghoram karma, and I have supported war and sent men to it, even though politics is not always or often a very clean occupation nor can war be called a spiritual line of action. But Krishna calls upon Arjuna to carry on war of the most terrible kind and by his example encourage men to do every kind of human work, sarvakarmani. Do you contend that Krishna was an unspiritual man and that his advice to Arjuna was mistaken or wrong in principle? Krishna goes further and declares that a man by doing in the right way and in the right spirit the work dictated to him by his fundamental nature, temperament and capacity and according to his and its dharma can move towards the Divine. He validates the function and dharma of the Vaishya as well as of the Brahmin and Kshatriya. It is in his view quite possible for a man to do business and make money and earn profits and yet be a spiritual man, practise yoga, have an inner life. The Gita is constantly justifying works as a means of spiritual salvation and enjoining a Yoga of Works as well as of Bhakti and Knowledge. Krishna, however, superimposes a higher law also that work must be done without desire,

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

without attachment to any fruit or reward, without any egoistic attitude or motive, as an offering or sacrifice to the Divine. This is the traditional Indian attitude towards these things, that all work can be done if it is done according to the dharma and, if it is rightly done, it does not prevent the approach to the Divine or the access to spiritual knowledge and the spiritual life. There is, of course, also the ascetic idea which is necessary for many and has its place in the spiritual order. I would myself say that no man can be spiritually complete if he cannot live ascetically or follow a life as bare as the barest anchorites. Obviously, greed for wealth and money-making has to be absent from his nature as much as greed for food or any other greed and all attachment to these things must be renounced from his consciousness. But I do not regard the ascetic way of living as indispensable to spiritual perfection or as identical with it. There is the way of spiritual self-mastery and the way of spiritual self-giving and surrender to the Divine, abandoning ego and desire even in the midst of action or of any kind of work or all kinds of work demanded from us by the Divine. If it were not so, there would not have been great spiritual men like Janaka or Vidura in India and even there would have been no Krishna or else Krishna would have been not the Lord of Brindavan and Mathura and Dwarka or a prince and warrior or the charioteer of Kurukshetra, but only one more great anchorite. The Indian scriptures and Indian tradition, in the Mahabharata and elsewhere, make room both for the spirituality of the re-nunciation of life and for the spiritual life of action. One cannot say that one only is the Indian tradition and that the acceptance of life and works of all kinds, sarvakarmani, is un-Indian, European or western and unspiritual.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

January 2013 | Vol.5, Issue 2 | A Monthly EJournal

The Route to Dharmacracy

E. Kumar Sharma After a long reign of soul stifling materialism, the modern mind is turning towards higher values which can give meaning and purpose to life and work. This trend is very much visible in the corporate world, which augurs well for the higher evolution of business. Here comes the importance of Indian philosophy which can provide a greater clarity and insight to the aims and values of this higher evolution. Interestingly, increasing number of management thinkers are now turning towards Indian wisdom for guidance and illumination. This article gives an indication of this new trend in management. However to realise the full moral and spiritual potential of Indian values, they have to be pursued as a means to the higher evolution of business, without diluting them to corporate requirements or seeking some immediate gains in the bottomline.
Come January and Vijay Govindarajan, Professor of Strategic Innovation and Management at Tuck School, Dartmouth, US, will be in India with a group of 50 US-based executives. His mission? I have arranged for Sadhguru Jaggi Vasudev to spend a day with the executives. The Sadhguru teaches spirituality. I want western executives to understand how spirituality informs leadership, says Govindarajan, who feels there is a need to temper capitalism and individual gains with compassion. We celebrate individual financial success. But I have seen executives who are successful on the outside - they have multiple homes, fancy cars, etc. - but these same executives are not happy inside. Spirituality is about seeking inner peace. It is needed more than ever now. In fact, in February this year, the Indian School of Business (ISB) set up a research centre called the Centre for Leadership, Innovation & Change, that, among other things, is looking at this area of Indian philosophy in management. The idea is to research deeper into it, and, perhaps, include it in the management course.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

Capitalism is facing a crisis - and desperately needs a remedy. There are many reasons for this, says Govindarajan, adding that a central problem is that there is something rotten at the core of American corporate values - it measures success by short-term personal financial gains. That needs to change.

Balanced Approach
This is where Indian philosophy, which balances the pursuit of wealth and material success with the mastery of the self and the quest for inner happiness, comes in, offering, as it does, an alternative to the greed is good ethos that has characterised the neo-conservative economic thinking pervading the corporate corridors of the US and much of the western world. The deeply introspective, yet practical, wisdom contained in ancient Indian texts such as the Bhagavad Gita, Mahabharata and the Vedas also stands in stark contrast to the language of conquest popularised by management theories based on Sun Tzu's sixth century BC classic, The Art of War. Says T.V. Mohandas Pai, Member of the Board of Director, Human Resources, Infosys Technologies: When people are in trouble, they always fall back on ancient wisdom to see what went wrong. It is not without reason, therefore, that recently, the ISBs Centre for Leadership, Innovation & Change organised its first international conference on Igniting the Genius Within. One of the topics discussed was Indian philosophy. The idea, says S. Ramnarayan, Professor and Member of the Management Committee of the Centre, was to expose students and management professionals to broader management vision and to look for integration of various perspectives.

Inclusive Capitalism
So, what specifically does Indian philosophy offer that the current thought in management doesnt? Says V. Krishnamurthy, former Deputy Director, BITS Pilani: The introspective qualities of ancient Indian philosophy are missing in the modern materialistic corporate chase. The latter is always focussed on getting things accomplished (without bothering much about the cost). It means that the cornerstone of corporate philosophy should be something bigger than money. This is not to say that businesses should stop, or even slow down, their pursuit of profits. It simply means corporate leaders should adopt a more holistic approach, incorporating the interests of all stakeholders, customers, employees, society, etc. - instead of remaining focussed only on narrow shareholder value. C.K. Prahalad, Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy at the University of Michigans Ross School Business, calls it Inclusive Capitalism. In this context, he says corporate social responsibility, so popular among companies and their spin meisters these days, is best a transition phase for a company. Thats where you learn that there is more to business than just profit maximisation. The final stage will be reached when companies realise that dealing with the impoverished in the world is not something they should do only once in a while. The key lies in thinking differently about the very purpose of business, he says.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

Back to India, Via the US

But ISBS initiative is not really as path breaking as it looks. Ironically, B-schools and management thinkers in India have woken up to the ancient wisdom contained in our holy books only after these ideas were embraced by the West. Leading management gurus of Indian origin such as Govindarajan, Prahalad, Ram Charan and Mohanbir Sawhney, McCormick Tribune Foundation Professor of Technology, Kellogg School of Management, among others, have disseminated this wisdom through their body of works for years now. In an article on the subject in 2006, Business Week had quoted Dipak C. Jain, Dean of Kellogg School of Management, as saying: When senior executives come to Kellogg, Wharton, Harvard, or Tuck, they are exposed to Indian values that are reflected in the way we think and articulate. Business organisations have woken up to the value of Indian philosophy in a big way over the past six years, says Swami Chidananda, Joint Secretary, Rajghat Education Centre, Krishnamurti Foundation, India. From a corporate perspective, we have to make decisions based on what is good for the customer and the community - in other words, we have to think from an ecosystem perspective, says Prasad Kaipa, Executive Director, Centre for Leadership, Innovation & Change, ISB; and CEO Adviser & Coach, Kaipa Group. Then, the Tata Groups takeover of Corus and Jaguar-Land Rover and its belief that it can turn those companies around, have made the western world quite curious about Indian management approaches, he adds. It is early days still, but many other B-schools are looking at this space. IIM Calcutta has a management centre for human values, and the FMS in Delhi and some others are also looking at it.

Ethical Dharmacracy
M. Rammohan Rao, Dean of ISB, feels Indian philosophy is relevant because business should not just be about one self but about the society and the environment it works within. Pai of Infosys has an interesting take on the growing importance of Indian philosophy in management. The fact is that we are Indians; so, consciously or unconsciously, the countrys value system resonates in what we do. And not only does it hold true for the companies but also for individuals leading them. He cites the example of Infosys Chairman & Chief Mentor N.R. Narayana Murthy: his philosophy of simplicity, many will argue, is really a reflection of pan-Indian values. The Tata Group, which, arguably, practices inclusive capitalism with greater zest than any other business house, is another example. Says Radhakrishnan Nair, Chief Human Resource Officer, Tata Steel: Wealth generation is important but it should be kept in trust to improve the communities in which we live. The Parsi motto of good thoughts, good words and good deeds is extremely rich in its effort to elevate human suffering. A true Tata person believes in simple living, high thinking and being genuinely affectionate.

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January 2013 | Vol.5, Issue 2 | A Monthly EJournal

According to Prahalad, the idea is to develop a system that places the individual at the epicentre of corporate strategy. Such a goal, though, looks unattainable in the short to medium term. Can it ever be reached? Thats impossible to answer with any degree of certitude, but if it is, then India would have made a defining contribution to management science. Says Kaipa: It may be time for what a Los Angeles Times reporter proposed last year that the US should move towards Dharmacracy not Democracy.

E. Kumar Sharma is Assistant Editor, Business Today and based in Hyderabad.

* The article is reproduced from Business Today.

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