Arthashastra (अर्थशास्त्रम्)

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Arthashastra (अर्थशास्त्रम्) was given by Kautilya, who was the political pholosopher and guide for Chandragupta Maurya during the Mauryan era. Arthashastra is a moolamantra not only for political governance but also a guptamantra for corporate management governance. The veracity of application to Kautilya's Arthashastra ranges to limitless boundaries of knowledge and learning from medicine to education to philosophy and even to contemporary management sciences. The preaching and mandates of Kautilya elevate human thinking to act beyond his sixth sense involving cognitive, affective and motor domains necessary to gain complete control over management of self and institutions.

Introduction

Please see this link to access the samskrita moolam for Kautilya's Arthashastra

पृथिव्या लाभे पालने च यावन्त्यर्थ-शास्त्राणि पूर्व-आचार्यैः प्रस्थापितानि प्रायशस्तानि संहृत्यएकं इदं अर्थ-शास्त्रं कृतं ।। ०१.१.०१ ।।

गूढ-पुरुष-प्रणिधिः। स्व-विषये कृत्य-अकृत्य-पक्ष-रक्षणम्। पर-विषये कृत्य-अकृत्य-पक्ष-उपग्रहः। ।। ०१.१.०३ब ।|

मन्त्र-अधिकारः। दूत-प्रणिधिः। राज-पुत्र-रक्षणम्। अपरुद्ध-वृत्तम्। अपरुद्धे वृत्तिः। राज-प्रणिधिः। निशान्त-प्रणिधिः। आत्म-रक्षितकम्। । इति विनय-अधिकारिकं प्रथमं अधिकरणं ।। ०१.१.०३क ।।

Contents

Chapter 1 Life of a King

Chapter 2

2.1 Prakaranam (Section) 1 : Indication of Sciences, Place of Anviksiki determined

Chapter 3

3.1 Indication of Sciences (Contd.)

Place of Three Vedas Determined

Chapter 4

4.1 Indication of Sciences (Contd.)

Varta and Dandaniti Established

Chapter 5

5.2 Association with the Aged

Chapter 6

6.3 Control of Sense Organs

Abandoning of the Aggregate of Six Enemies

Chapter 7

7.3 Control of Sense Organs (Contd.)

Life of a Saintly King

Chapter 8

8.4 Employment of Ministers

Chapter 9

9.5 Selection of Councillors and Priests

Chapter 10

10.6 Purity and Impurity of Ministers Tested

Chapter 11

11.7 Constitution of Spies

Chapter 12

12.8 Duties Assigned to the Spies

Chapter 13

13.9 Engaging Spies Against One's Officers

Chapter 14

14.10 Winning Over Faction in an Enemy's State

Chapter 15

15.11 Counselling

Chapter 16

16.12 Employment of Messengers

Chapter 17

17.13 Protection of Princes

Chapter 18

18.14 & 18.15 Prince put under Restraint and Treatment of a Restrained Prince

Chapter 19

19. 16 The Royal Duties

Chapter 20

20.17 Duty towards the Harem

Chapter 21

21.18 Self Protection

Adhikaram 2 : 'Adhyakshapracharaha' Authorities

Chapter 22

22.19 Arrangement of Villages

Chapter 23

23.20 Division of Land

Chapter 24.

24.21 Construction of Fort

Chapter 25

25.22 Buildings within the Fort

Chapter 26

26.23 Duties of Treasury Officer

Chapter 27

27.24 Collection of Wealth by the collector

Chapter 28

28.25 Counting of Coins and Maintenance of Accounts

Chapter 29

29.26 Detection of Embezzled Revenue

Chapter 30

30.27 Test of the Conduct of Employees

Chapter 31

31.28 Procedure for Issuing Writs

Chapter 32

32.29 Examination of Gems to be deposited in the Treasury

Chapter 33

33.30 Mining Operations

Chapter 34

34.31 Superintendent in the Office of Goldsmith

Chapter 35

35.32 Goldsmith in the High Road

Chapter 36

36.33 Chief of Store House

Chapter 37

37.34 Authority of Commerce

Chapter 38

38.35 Authority of Forest Producers

Chapter 39

39.36 Authority of the Armoury

Chapter 40

40.37 Authority of Weights and Measures

Chapter 41

41. 38 Measurement of Space and Time

Chapter 42

42.39 Superintendent of Tolls

Chapter 43

43.39 Regulation of Toll Dues

Chapter 44

44.40 Superintendent of Weaving

Chapter 45

45. 41 Superintendent of Agriculture

Chapter 46

46.42 Superintendent of Liquor

Chapter 47

47. 43 Authority of the Slaughter House

Chapter 48

48.44 The Superintendent of Prostitutes

Chapter 49

49.45 The Superintendent of Ships

Chapter 50

50.46 The Superintendent of Cows

Chapter 51

51. 47 The Superintendent of Horses

Chapter 52

52.48 The Superintendent of Elephants

Chapter 53

53.48 The Superintendent of Elephants; Training

Chapter 54

54.49 The Superintendent of Chariots

54.50 The Superintendent of Infantry

54.51 Duties of the Commander-in-chief

Chapter 55

Chapter 57

57.56 The Duty of a City Superintendent

Arthashastra and Contemporary Management Theories

Glimpses of health and medicine in the mauryan empire Dr. D. V. Subba Reddy, - pp79,

Thus human personality (maharaja) must manifest multi-dimensional adaptive roles at different times by demonstrating extraordinary intuition, self control, vision, accurate prediction, confidence in decisions taken, combating venom attacks etc. Such qualities are no differently to be enumerated by a successful management expert.

The king is a ruler of the kingdom (a corporate leader) and as a decision maker has to be secretive about his war strategies (incubating new product developments) at the same time be offensive and defensive with enemies (corporate rivalry and competition) as the threat perception may be ensuring his survival despite enemy attacks (presence of substitutes and complementary products and disruptive technologies). Such preaching are of the nature of Gupta Mantra.

In economics, industrial organization or industrial economy is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization is not a perfectly competitive model, due to real-world complications such as transaction costs, information asymmetry and inaccessibility (limited), and barriers to entry of new firms which obviously make it an imperfect competition. It analyzes determinants of firm and market organization and behavior as between competition and monopoly, including that of government actions. Government actions are governed by a legal system of the country. Extending the Arthashastra philosophy, be it a nation or modern age business entity, the framework of industry, market or firms is governed by an over-arching legal system.

The central force of a political architecture is its legal system and the king is a protector and preserver of the law but most definitely not its creator which means his power is sanctioned and limited by law. Be the powers vested, the actions of CEOs of companies are governed by the Companies Act , Income Tax Act, SEBI Regulations, and the likes of these. When no confidence motions (equivalent to dethroning a king) are passed against CEOs in the U.S, his kingship is challenged, by the board of directors, for non-performance. These consists of forces that affect the company, customers and profitability much against how it was envisioned. This establishes the temporal sovereignty of the CEO where the Varjasva Takat (Ultimate power) of the power owner is called into question resulting in dethroning the leader. Recent real-life corporate citations are available to corroborate this. This proves the temporal sovereign status of the corporate leader.

Corporate Competition, Competitive Forces and Rivalry While Arthashastra can be considered a bible describing the methodology of supreme governance in a political architecture, such tenets can be applied to corporate governance too. Michael .E. Porter has suggested competition from rival firms to be the biggest force attacking business as much as rival forces have the ability to ruin kingdoms cited in portions of the Arthashastra dossier.(Shamashastry 7/614). In 1979 a professor from Harvard, Michael E. Porter was the first to study Organizational Economics in the context of competition and published his maiden framework ' Porter's Five Forces of Competition' in Harvard Business Review. According to Porter these 5 forces affect the competition within an industry which makes it either attractive or unattractive (vulnerability) in terms of its profitability. The bargaining power of buyers, bargaining power of suppliers, the threat of new entrants and the threat of substitutes are 4 environmental factors that effect competitive rivalry in business. Hence industry attractiveness according to Porter is a function of competing rivalry among firms (Causation) and profitability (Effectuating). Porter's five-forces framework is based on the structure–conduct–performance paradigm in industrial organizational economics. It can be applied to address a diverse range of business challenges such as helping non-profitable businesses become more profitable to helping governments stabilize industries that are in a state of disequilibrium.

The structure–conduct–performance (SCP) paradigm, first published by economists Edward Chamberlin and Joan Robinson in 1933, and developed by Joe S. Bain is a model in Industrial Organization Economics which offers a causal explanation for firm performance through economic conduct on incomplete markets.

According to the structure–conduct–performance paradigm, the market environment has a direct, short-term impact on the market structure. The market structure then has a direct influence on the firm's economic conduct, which in turn affects its market performance. Hence a cause and effect relationship may occur or a reverse effect may occur such that market performance may impact conduct and structure, or conduct may affect the market structure. Also, the external legal or political interventions affect the market framework and by extension, the structure, conduct and performance of the market.

Creating a B-Line Leader/ Corporate Succession Plan /Successor Most corporate houses lack a sound legacy in leadership though the forefathers may have given birth to a legacy. The newer generation and their thought process do not sync with the value systems and organization culture resulting in conflicting views while decision making on matters relating to policy creation, execution, employee-employer relationship, administrative inefficiency and ultimately financial losses. The new blood introduced in the corporate vein obviously lacks expertise, competence and wisdom to learn and earn on whatever has been created, protected and preserved thus far. To enable successive generations to carry out the responsibilities of running a business empire with the same grit, ingenuity, and crafty intelligence demands i. Identifying such a capable body and mind ii. Constant training of such a body and mind, iii Finally creating emotional and psychological immunity to business and personal adversaries so that the mind and body of the individual (SS pp 89/108) is well prepared to take up the associated challenges during one's corporate engagements.

Corporate Vision:

Offensive and Defensive Strategies Corporate aggressive strategies are sometimes surgical and this mostly happens during a disruptive innovation.

Covert and Overt strategies

Brand Building and Immortality A few corporate brands are immortal especially the ones like Lifebuoy, Lipitor, Digene antacid, Dettol, Colgate and likewise. The creation of such brands give a competitive edge to companies irrespective of the new arrival of substitutes or complementary products or new technologies. Such products due to their credible and stable performance, dethrone the status of any competing brand attempting to fragment the consumer base.

New Product Development and Incubation