Indian Business Models: Business in Ancient India - Prof P. Kanagasabapthi

 Commerce played a great role in making India the universal exporting centre of the economic world in ancient times. Not only was the corporate form used for business enterprises in Ancient India, but also for political and social purposes and went by variety of names-gana, samgha, sabha, sreni and others too.

As India is an ancient nation with a proud economic background, businesses must have existed and flourished since the earlier times. It is relevant to remember that India was well-known in the international business since the ancient times. Agarwala writes: “Commerce played a great role in making India the universal exporting centre of the economic world in ancient times.” He notes that there were commercial cities and trade centres dominated by the merchant class more than five thousand years ago. To quote: “Commercial cities like Harappa and Mohenjodaro were founded in the fourth and third millennium BC. Trade centres had also come up in western India in the fourth and third millennium BC resulting in the domination of Indian society by merchants; these commercial people were instrumental in bringing about the first mercantile revolution. India thus became a great exporting country”.

Apart from the individual and family-based businesses, different forms of organizations seemed to have functioned since the earlier times. Khanna notes: “The earliest Indian writings do make references to organizational forms. The Rig Veda makes reference to the pani (akin to a partnership amongst traders for trade caravans) and the Mahabharata to the sreni.” Evidences indicate that these forms of organizations were known to have existed at least about 2800 years ago. Based on sources, Khanna writes: “… if one uses the most recent dating for the earliest written materials (1500 BC to 1000 BC) then by 1000 BC to 800 BC the sreni and pani were known to Indians.” He notes further that ‘the sreni predates the earliest Roman prototype corporations by centuries’ and it is ‘considerably more complex and detailed than the Roman entities’

It is important to note that the ancient sreni and the modern corporate form of organization exhibit similarities, though they are separated by many centuries. Table 6.1 compares the select characteristics of the modern US corporate and the ancient Indian sreni forms of organizations.

Table 6.1 shows that the ancient Indian sreni form of organization possessed characteristics similar to the modern US corporations. It only shows the capacity of ancient Indians to establish different types of enterprises suited to the growth of businesses much ahead of the times. Besides business, the corporate form of organization was used for other purposes also in the ancient days. “Not only was the corporate form used for business enterprises in Ancient India, but also for political and social purposes and went by variety of names-gana, samgha, sabha, sreni and others too”.

During the period of Indus Civilization from about 4000 BCE to 1900 BCE, there was trade within and outside the country. Khanna mentions that even during this period, “… it does appear that some of the basic pre-conditions for the development of organizational forms were present….” Around 700 BCE, two Indian religions, namely Buddhism and Jainism were founded. Different sources suggest that during this period, “the sreni were numerous, in varied fields, and indeed could be mobile from one place to another. The sreni were clearly important in the society as they were often invited for official state functions. They were also actively involved in trading, production (crafts), and rudimentary banking services by this time. Their importance is further highlighted by the fact that the Bhandagarika (an arbitrator for inter-sreni disputes) became established as a government official” Later during the times of the Mauryan Empire, the state played an important role in regulating the economic activities and “the sreni were a large and growing sector of Indian life”

The Gupta Empire roughly dating from 240 to 550 CE is referred to as “India’s Golden Age.” Efficient administration, scientific and technological developments and contacts of the rulers with the other countries helped the growth of the economy and resulted in a vibrant domestic and foreign trade during this period. “Some estimate that there were at least 150 sreni by this time”. It is reported that the written sources during this period provide detailed accounts of sreni, “… the importance and enforceability of sreni dharma, the mobility of the sreni, the multi-profession sreni, and the expansion of the sreni into various other aspects of life!”. During the post-Gupta period, a number of kingdoms ruled parts of India for around 400 years, and there were wars resulting in the general decline of trade. Around 1000 CE, different parts of North India was subjected to Islamic invasions and about two centuries later South India was invaded. During that time onwards, there were frequent wars within the country to obtain control of different regions. As a result the business suffered and the sreni form of organization continued to weaken.

Agarwala notes that “During the period of Delhi Sultanate, which extended from the closing years of the twelfth century to the founding of the Mughal Empire in 1526, the economic activities in cities continued to flourish despite the decay of the ancient self governing village assemblies. Ibn Battutah, during his travels from 1333 to 1346, found great cities with rich markets in the Upper Gangetic valley, in Malwa and Gujarat, in the Deccan and in Bengal as well as in the Malabar region in the extreme south. He found the ports of Quilon and Calicut in Malabar comparable with Alexandria in Egypt, Sudak in the Crimea and Zaytun in China in terms of their magnificence and the quantum of trade handled by them.”

Bibliography:

Indian Models of Economy, Business and Management (3rd Edition) by P. Kanagasabapathi 

Article courtesy: https://cisindus.org/2022/07/12/indian-business-models-business-in-ancient-india/

Perspective of Mahatma Gandhi and Modern State - Archna Sharma

RRIJM 2015, All Rights Reserved

ABSTRACT

Mahatma Gandhi was the most important political figure of 20th Century. His principles inspired million of people all over World. In Gandhi's assessment the State (Western type) was the symbol of violence in a concentrated form. He learned from his experience in South Africa that excessive power with the State meant more violence or greater amount of coercion. In the name of maintenance of law and order, the South African white government acquired enormous power and this led to the ruthless administration, exploitation and end of individual's liberty. So his philosophy was „anti modernist‟ and opposed the idea of Modern State. Gandhi's critique of the Modern State was central to his political thinking. The case of Gandhiji theory of politics is to show that the citizen is the true political subject and not the State. Gandhi's book „Hind Swaraj‟ give us an idea of Gandhian vision of a modern Indian State. He believed that in the „Ideal State‟ there will be no political state therefore there will be no political Institution and political power. He said in his classical statement "That government is the best which governs least"

1. Introduction

The middle of the 19th century had seen the British become, in effect, the rulers of India. Their control was organised in a bureaucracy that boasted of a tradition of justice and fair dealing in the matters concerning the State and its subject. From the standpoint of administrative theories, there had emerged a Modern State with claims to democracy in India. The basic framework of this modern State was provided by a Rule of Law for the maintenance of public order and a political arrangement, the real motive of which were, however, commercial in nature. A workable basis for this State was provided by a taxation method that was essentially a combination of a tax assessment and tax collection.

Mahatma Gandhi‟s perspective on the theory of the State questions, at the theoretical plane, the very basis of the Modern State. It reflects a growing dissatisfaction with the working of the State and contents its unsuitability for India. Gandhi ji found in the Modern State a System considerably nonadjustable with the socio-economic characteristics of the Indian Society. His study of the functioning of British State in England and in the colonial territory of South Africa seemed to have given him a deep understanding of the theoretical framework of the Modern State and its actual working in a variety of situation. Consequently, he developed an understanding of the Modern State that was profoundly original in its approach and refreshingly analytical in its assessment. These features made possible a model of polity whose guiding principles and functional doctrine constitute an innovative system known as "Swaraj". Gandhiji talks about "Swaraj" in the framework of a code that should determine the constitutional formulation of Indian Home rule. Hind Swaraj signals the need for an alternative approach to civil society beyond Modernism. This approach combines 'Swaraj' with the practical tenents of a non-violent, self contained, grass roots level society. He clearly said “To me political power is not an end but one of the means of enabling people to better their condition in every department of life. In such a state everyone in his own master. He rules himself in such a manner that he is never a hindrance to his neighboure”1 This paper attempt to understand the vision of Mahatma Gandhi on Modern State and some of the principles concerning the theory of the State in consonance with the Gandhiji perspective. It is a clear exposition can be found in Hind Swaraj written in 1909, with its succinct on the Wetern ideals of techno-modernism and its expression of the elements of “Swaraj”. The first section briefly analysis the perspective of Gandhi and the Modern State. Second section discusses the difference between Modern State and India. The third section about the model of polity “Swaraj” with functional Doctrine and understanding of swaraj. The fourth section briefly outlines Liberalism and Trusteeship as Gandhi's novel contribution in the sphere of Political Philosophy.

2. Perspective of Gandhi ji and Modern State

Mahatma Gandhi is widely recognized as one of the most original and influential political thinker and activist of the 20th Century. His perspective on the theory of the state questions, at the theoretical plane, the very basis of the Modern State. The basic framework of this Modern State was provided by a Rule of Law for the maintenance of public order which defined the State as "necessary evil", but welfare promoter. According to Gandhi, the „Western State‟ was the symbol of violence. He strongly believed that the state or the system like democracy can not be final ideal. These institutions are based on political power, therefore, they can only be the means of improving the conditions of people at different level walks of life, but it cannot lead human welfare.

A western state runs on the foundation of the taxation method that is essentially a combination of tax calculation and tax collection. The State, with its stress on commerce and industry, and its emphasis on demonstrable competence, projected a contradictory picture in which the privileged class was favored and the needy ignored. His had a deep understanding of the theoretical frame work of the modern state and its actual working in a variety of situations. Therefore, the State to the „Rule of law‟ and its impact on the society were matters that were very disquieting to Gandhi. Consequently, he presented an original approach to the Modern State.

3. Gandhi's critique of the Modern State

At a basic level, the model of the Modern State was linked to his concepts of non-violence. According to Gandhiji democracy can not be ideal in the form of Institution like State. Institution which are based on political power are only a means to make people comfortable in their daily life but not success to achieve the goal of human beings. An individual cannot be forced to do any work against his will or spontaneous desire. In the other word according to him the progress of society can be achieved only when the individuals perform willingly i.e in autonomy. The concept of autonomy was the key element in his critique. According to him individuality means two things – one that citizens should neither be dominated by others members of the society nor by the State and other idea that individuals should be „self governed‟. He believed that modernity was an obstacle to autonomy since it introduced and justified new forms of domination based on a predetermined, external process of economic productivity. He stated that since „autonomy‟ is absent in the Modern State, hence the objective of self governance also missing in it.

He found that the character of Modern State is too rigid. Another noteworthy feature of Gandhi's critique was related to the intrinsic homogenising tendency of the Modern State. The uniform rules and bureaucratic management were the two principle tools of the State with the help of which a society was governed. In a write up Mahatma Gandhi said “The State represents violence in a concentrated and organised form. The individual has a soul, but as the State is a soulless machine, it can never be weaned from violence to which it owes its very existence”. 2

4. Modern State and India

Modern State and India was an important issue in Gandhi's thought. A close understanding of Modern State and its allied institutions during Gandhi's South Africa days had opened his mind to various questions. Gandhi's case for the incongruity of Modern State in India can be understood by following comparative study:

 Indian civilization is spiritual in essence.

o State is a product of materialistic civilization.

 In Indian culture „Non-violence‟ is deeply ingrained.

o The State is violent character.

 India has a rich diversity of customs, religions and social norms.o The Modern State promotes homogeneity in nature.

 Basically India is a rural country.

o Promotion of urban civilization is the base of Modern State.

 Stratified Indian Society has autonomous and self governing castes, sects and ethnic groups as its constituent units which require a variegated system of governance.

 A uniform system of laws and a set of rules and procedures that ironed out variations was Modern State's unequivocal commitment.

 Indian Society values and is based on direct and unmediated relations between human beings.

 The Modern State is a highly abstract institution.

 Decentralised power structure that could take care of India‟s diversity was needed for Independent India.

 Based on these differences Gandhiji rejected the Modern State as a suitable for independent India.

5. Mahatma Gandhi’s Model of Polity: "SWARAJ"

The concept of Swaraj has received a very prominent place in Gandhi's spiritual, political, social and economic ideas and has been expressed in his writings and speeches. Swaraj generally mean self governance or 'Self rule' and is used as the concept of „home-rule‟ by Mahatma Gandhi. But the world usually refers to Gandhiji concept for India freedom from foreign rules. Swaraj lays stress on governance not by a hierarchical government, but self governance through individuals and community building. Swaraj- the main elements of swaraj autonomy of individual, self-governing, self responsibility and self respect. Gandhi ji strongly argued for the abolition of Modern state which was the English rule. It is swaraj when we learn to rule ourselves, it is therefore in the palm of our hand, but such swaraj has to be experienced by each one for himself. One drowing man will never save another.Formulation of the idea of „Swaraj‟ can be seen in his other writings from young India, Hind swaraj, Harijan and published elsewhere.

Gandhi had envisioned for independent India a polity that would be based on the principle of democratic self - government or self rule. Gandhi opted for “'Ordered Anarchy' under which citizen enjoyed maximum freedom consistent with minimum necessary order.”3 Self governance or Self-rule at a general level carried the meaning of „Swaraj‟. Thus, „Swaraj‟ was a collective goal of the Indians as well as their individual goal and it did not necessarily mean an alternative State or a reformed structure of the Modern State. 'Hind Swaraj is a text where a clear sighted formulation of the idea of 'Swaraj can be seen. This has to be supplemented by Gandhiji‟s views in Young India and Harijan and those published elsewhere.

The main principles of 'Swaraj'

 Non violence was the bedrock of Gandhian ideology, it was obvious that polity was firmly rooted in it.

 Second was the individual‟s autonomy which was equally required for Swaraj

 Self- realization of power to build up courage among its people.

 It was also required in the new polity to respect the Indian society diversity which boost-up Indians.

 Establishment of national unity and end of those things which create differences among people.

 New polity would be in favour of self- governing local communities.

 The importance and requirement regeneration of Indian culture could not be neglected in this new policy.

Gandhi‟s thought that the real foundation of the new polity was co-operation amongst the people. He firmly believed that co-operation of the people, whether active or passive, would lay the foundation of the new polity.He said “ I belive that you want the millions of Indian to be happy, not that you want the reins of government in your hands. If that be so, we have to consider only one thing: how can the million obtain self rule” 4 According to Gandhiji real India lived in village. The functional doctrine of new polity was therefore provided by the famous 'Village republics' of Gandhian conception. The village communities were supposed to manage their affairs through panchayats elected annually by every literate adult. The village panchayat in the model of republic were to have legislative, executive and judicial powers. He believed in strong sense of local strength and solidarity by village panchayat which provide meaning full interpersonal relationship, encourage a sense of social responsibility and the spirit of cooperation and act as a 'nursery of civil virtues'.

In an interview given by Gandhi on 28th July 1946 in Harijan, he said “We must have a proper picture of what we want before we can have something approaching it. It there ever is to be a republic of every village in India, then I claim verify for my picture in which the last is equal to the first or, in other words, no one is to be the first and none the lost.

In this picture every religion has its full and equal place. We are all leaves of a majestic tree whose trunk cannot be shaken of its roots, which are deep down in the bowels of the earth. The mightiest wind cannot move it.”

A. Understanding, Swaraj

Swaraj is a more than basic concept of non-violence since non-violence is only a means to 'Swaraj' whereas 'Swaraj' is an individual's state of being. The concept of 'Swaraj' can be summarized as

 Independence of a country from alien rule.

 Political freedom of the individual.

 Economic freedom of the individual

 Attainment of spiritual freedom or autonomy of the individual.

Gandhiji said “Self government means continuous effort to be independent of government control, whether it is foreign government or whose it is national. Swaraj governance will be a sorry affair if people look up to it for the regulation of every detail of life.”4 He was unequivocal in his recommendation of the non-violent means. “Violent means will give violent Swaraj. That would be a menace to the world and India herself. ” 5

He dreamed of a “casteless and classless society in which there are no vertical division but only horizontal' no high no law, all service has equal status and carries equal wages......... women will enjoy the same right as men. Since we shall be at peace with all the rest of the world neither exploiting, nor being exploited, we should have the smallest army imaginable.”6 The national movement, which was organised in India before his (Gandhiji) entry in the movement suggested that principal objective of the movement was gaining an administrative control of the country. The picture of this movement was clear in his mind before he participated in it. He had written in Hind Swaraj, “In effect it means this: that we want English rule without the Englishman. you want the tiger's nature, but not the tiger; that is to say, you would make India English and when it becomes English. It will be called not Hindustan but Englistan. This is not the Swaraj that I want”7. The autonomy of the individual completes the Gandhian sketch of „Swaraj‟.

He said “The individual ceases to count, what is left of society ? His weariness of the Modern State was also on the count that in it the individual was completely replaced by an abstract complexity -the State, which was therefore impersonal to individual member of society. This autonomy, however, was not an unbridled license for individual will to prevail in all matters.”7 B. Liberalism and Trusteeship: After understang of „Swaraj‟ it become clear that Gandhian theory of the State holds a ground of Liberal perspective. In his view only a federally constituted polity based on vigorous and self governing local communities was truly democratic. The fundamental fact of democracy was the recognition that citizens were self-determining moral agents. The principal objective of democracy was to organise the conduct of collective affairs without any governmental domination.

According to Gandhiji Liberalism was a way of life. „Swaraj‟ describes „true democracy‟. According to Gandhiji, “True democracy cannot be worked by twenty men sitting at the centre. It has to be worked from below by the people of every village.”8

He had elaborated his concept “My notion of democracy is that under it the weakest should have the same opportunity as the strongest. That can never happen except through non-violence. No country in the world today show any but patronising regard for the weak....... western democracy, as it function today, is diluted Nazism or Facism - India is trying to evolve true democray, i.e. without violence . Our weapons are those of 'Satyagraha' expressed through the 'Charkha' the village industries removal of untouchability, communal harmony, prohibition, and non-violent organization of labor as in Ahemdabad. These means mass effort and mass education. We have big agencies for conducting these activities, they are purely voluntary, and their only sanction is service of the lowliest.”9

Gandhiji further wrote in a letter to Jawahar Lal Nehru “The village of my dreams is still in my mind. After all every man lives in the world of his dreams, My ideal village will contain intelligent human beings. They will not live in dirt and darkness as animals. Men and Women will be free and able to hold their own against anyone in the world. There will be neither plague, nor cholera nor smallpox, no one will be idle, no one will wallow in luxary. Everyone will have to contribute his quota of manual labour. I do not want to draw a large scale picture in detail.”10 In the sphere of political philosphy “Trusteeship” is the great and novel contribution of Gandhiji, and it was the economic extension of his political philosphy.

Gandhi ji had a view of „social trust‟ of all material property. The owner of property must not take more than what was needed for a moderately comfortable life. The other members of society who were associated with the property were jointly responsible with the owner for its management and were to provide welfare scheme to all. The owner and the rest of people should regard themselves as trustees of the property. He elaborated his concept about Trusteeship in his editorial saying, “Suppose I have come by a fair amount of wealth either by way of legacy, or by means of trade and industry, I must know that all that wealth does not belong to me, what belongs to me is the right to an honourable livelihood, no better than that enjoyed by millions of others. The rest of my wealth belongs to the community and must be used for the welfare of the community .. ...” He further wrote and opposed Zamindars and ruling Chief,… “ The labourer has to realise that the wealthy man is less owner of his wealth than the labourer is owner of his own, viz, the power to work.”11. The writing of a draft on Trusteeship was the result of long discussion with Gandhiji and a group of socialists. The final text of the draft said:

 Trusteeship provides a means of transforming the present capitalist order of society into an egalitarian one. Instead of the capitalist, it gives the owning class a chance of reforming itself.

 It does not support the right to private ownership of property.

 It does not exclude legislative regulation of the ownership and use of wealth.

 It calls for both a decent minimum living wages and the fixation of a maximum income that allowed to any person in society. The difference between such minimum and maximum income limit should be reasonable, equitable and variable over time.

 Economic production should be determined by social necessity and not by personal whim or greed. He said, “you may say that Trusteeship is a legal fiction. But if people mediate over it constantly and try to act up to it, then life on earth would be governed for more by love than it is at present.”12

6. Conclusion

Thus, we find that in Gandhian perspective state, democracy, Swaraj, non violence, liberalism and trusteeship all are closely connected. Gandhi ji was the great social activist who always make effort for the upliftment of weaker section of society. He believed India is a country of village‟s and its countrymen are economically poor as well as socially. So he advocated swaraj for self development but he believed swaraj- self governing should be come with self responsibility and for economically growth trusteeship is best option. He has deep understanding of theoretical and practical framework of modern state so he always denied its acceptance for the India and developed his theory for the build up a good nation-India. Gandhiji strongly advocated swaraj and trusteeship, for him the well being of every individual consists in swaraj and trusteeship is the west mean to attain the ends of capitalist which insure the autonomy and liberty of individual.

Author is Asstt. Professor, Economics, Sahu Ram Swaroop Mahila Mahavidyalaya, Bareilly Uttar Pradesh (India)

 

Stakeholders' Welfare and Arthashastra: Learning for Modern Business Management - Rishi Manrai & Utkarsh Goel

 Abstract

The ancient scriptures of our civilization are sources of immense knowledge and Kautilya's Arthashastra is no exception. Teachings of Arthashastra which explains the politics and economics of governance was primarily written for the rulers and kings. Today's modern business can be compared to the ancient empires and the managers have to play a role similar to the kings. This study tries to highlight the learnings for modern business organization from the teachings of Arthashastra to ensure welfare of all stakeholders. The study specifically focuses on corporate governance, training and group dynamics, corporate social responsibility and value base management. The study further proposes a new SHASTRA model which models the teachings of Arthashastra and acts as a guideline for effective business management based on ancient wisdom. The proposed model if adopted by a business organization is expected to improve its performance without reducing its obligation towards the society.

1. Introduction

Deriving management principles and learning from ancient Indian texts specifically history, philosophy and culture are increasing (Kale and Shrivastava, 2003). However contemporary research in the domain is generic and has not been conducted in details which leave room or lot of research. Most of the researchers in the area have worked more on the philosophies and managements thoughts of the western part of the world as compared to the eastern part. Therefore, management theories from the west have a greater influence on management thinking and decision making from over the last two centuries.

The investigation into the Eastern perspective of management learning for decision makers started with in depth understanding of the Japanese management several years ago (Maruyama, 1994).

On the other hand the research based on ancient management dissertations in China, from this perspective accelerated in the last few years.

Literature from Confucianism and Sun Tzu Art of War had a very important role to play in this. Not only China, a significant portion of tradition and culture of several South East Asian nations derive their management lessons from heritage emerging from Confucian philosophy. Indian management also, following the other parts of the world has a strong philosophical convention which is continuing to sustain the cross cultural philosophies in Indian organizations (Chatterjee,2007).

Indians and Indian literature have an enormous contribution in various fields of knowledge, arts and literature. The Indian civilization which dates back to several thousand years, with recorded history, is perhaps one of the ancient civilizations in the world. Indian epics like Valmiki Ramayana, Mahabharata, Puranas, etc offers significant knowledge and lessons which in several contexts are highly relevant to present times. Using the literature which is more than 5000 years ago the paper discusses the principles of ethical profit making in Arthashastra by Kautilya, with reference to business decision making.

2. Literature Review

Research papers analyzing the ancient works of Indian sub-continent, for example Kautilya's Arthashastra in the perspective of modern day management practices are indeed limited. Due to the extensive amount of concepts of management literatures and concepts available on papers, Asians in particular, continue to use the theories and models of the western world. Another reason to substantiate this is that the modern day managers receiving there management degrees from western

Business schools follow their tradition (Muniapan,2006). The relationship between companies' financial and social performance has been an important area of research for many years. Waddock and Graves (1997) and Preston and O'Bannon (1997) provided several evidences of research in the domain, testing and verifying the relationship between corporate social performance (CSP) and financial performance. Through their research they advocated a strong support for the hypothesis that perceived high quality of management. The researcher further explained corporate performance with reference to the various stakeholders like consumers, suppliers etc.

Preston in his research tested different hypotheses to explore the relationship between corporate social and financial performance and found significantly negative lead lag relationship. Earlier studies did not attempt to express any causation.

Cochran and Wood (1984), on the other hand found a positive relationship between the two factors in question. However, Aupperle et al. (1985), found either no relationship or insignificant results due to the method used to measure CSP has been varied and contentious.

Specifically, researchers like Brown and Perry (1995) demonstrated the presence of a "financial halo" in the fortune data, declaring the same as Inappropriate measure of social performance.

Their research used publicly-reported information for both financial performance data and confirmation of a broad concern for stakeholder interests.

Another study by Hofstede in the year 1983 on “National Cultures in Four Dimension” and studies conducted by researchers like Deresky (2006) show that eastern nations are high in power distance.It was delineated by the studies that Indian employees recognize and accept the top manager's authority. The basis of the same is that they seldom bypass the chain of command.

Besides the above mentioned factor, Indian markets are highly volatile, which means managers have a tendency for safer decisions. India also has low eccentricity, which implies that country, society as well as peer groups, are more important than individuals.

Suresh and Janki (2012) from their research said that the current business scenario is highly volatile because of several causes like unethical practices, declining values and shortage of value-based leaders at decision making level. In their research the authors explored value-based principles adapted from Holy Scriptures especially Bhagavad

Gita, the teachings of which remains valid even in the present day. Incorporating these value based principles with modern management theories may lead to good Corporate Governance. The fruits of which can be realized only when ethical means are adapted as policy and are practiced in an organization.

Value-based management is a source of providing a strong foundation to quality systems and such organizations are very active in CSR initiatives.

Ethical leadership of the organization is like a parenting a child, infuse the value systems, beliefs, culture in the organization to shape a good corporate governance. This will help organizations to achieve their prime objective of enhancing stake-holder's value while protecting the environment. Though a corporation is a single/ small entity but definitely its governance, policies etc. make an impact on the whole corporate world.

Muniapan and Dass (2008) also explored the philosophy of corporate social responsibility (CSR) from an ancient Indian viewpoint. Previous studies in the domain shows that there are very few references mentioned in the literature in the form of articles which discusses the concept of CSR as derived from the philosophical, historical and from the ancient perspectives. The study, discussed the subject area with reference to India by tracing the origin of CSR from the Vedic literatures such as the Valmiki Ramayana and Mahabharata including the Bhagavad-Gita and the ancient Puranas.

By using the appropriate methodology, the authors in their research discusses some corporate teachings on CSR, providing lessons to corporate leaders/ decision makers of today. It was further concluded that Arthasastra provided an inclusive approach to CSR, i.e expansion of the individual leader's self conscience, as compared to American and European perspective that talks about only outside-in aspect. The roles of decision makers in corporations are very critical as these are the people who ensure transparency, good conduct and governance leading to CSR.

Muniapan and Satpathy (2010) through their study praised Valmiki Ramayana as one of a masterpiece discussing the different dimensions of Ramayana ranging from philosophy, spirituality, economics, technology and others have been explored by researchers over the centuries. However, the researchers were of the view that the epic had not been studied from management perspective despite Valmiki Ramayana having several lessons for managers. The researchers tried to explore the consequences of Valmiki Ramayana for growth of present day managers by employing a technique called hermeneutics. This is a qualitative methodology, where the researchers deduced dharmic organization, decision taking, humanism and equanimity from Valmiki Ramayana. The same principles are applicable to managers for enhancing managerial effectiveness. Valmiki Ramayana can further be explored in other areas of management such as strategic management, people management to derive more corporate lesson.

3. Kautilya's Arthashastra

The Arthashastra an ancient text written in several hundred years ago by Kautilya (believed to be written in 4th Century B.C.) in the ancient India is atreatise on political economics. Kautilya also known as Chanakya was the chief adviser and one of the significant ministers for a very powerfulnEmperor Chandragupta Maurya, the first ruler of Mauryan empire. Kautilya is believed to be instrumental in finishing the Nanda Empire in Magadha. He helped establish the Maurya empire which is believed to be larger than the Mughal empire and even British empire in India (Singh, 2016). Arthasharta was written by Kautilya as a guide for those who govern and deal withneconomics and politics. In the text the great master discusses three important aspects namely national security, administration of justice and economic growth policies. It is clearly evident that although the text was written for King Chandragupta Maurya but the author had acknowledged in its introduction that it has been written as a rulebook for “those who govern” or in simple words for decision makers.

The study specially focuses on the teachings of Arthashastra which lay special emphasis on stakeholder benefits and development. The study divides the learnings into four parts viz. corporate social responsibility, training and group dynamics, corporate governance and value based management.

4. Corporate Social Responsibility

CSR can be understood as the responsibility or obligation of an organization to take care of all its stakeholders which includes its employees, suppliers, customers, shareholders and also the community and society. From modern business perspective, CSR may be defined as the commitments of any business to contribute to economic development for improving the quality of life of the all stakeholders and the society in an ethical way. It can be said that CSR requires that organization not only thinks about its profits but also about the welfare of shareholders and society as a whole. Right from Rig Veda, CSR has always been stressed in ancient Indian wisdom as a king is expected to work towards welfare of his subjects and not just concentrate on wealth accumulation.

The Arthashastra by Kautiliya focuses on running the empire/state efficiently and covers all the aspects of administration and governance. It stresses that a ruler or king (in organizational context CEO) should not care about his own self interest but rather but work towards the happiness and well being of all the people of his kingdom i.e. Bahujana sukhaya bahujana hitayacha (stake holders of organization). The king should find happiness in the happiness of his people i.e. Praja Sukhe Sukham Rajy) and similarly the CEO and management should work towards maximization of shareholders wealth and welfare of all stakeholders.

Kautilya write that there are three prime responsibilities of a king viz. raksha, palan and yogakshma (Muniapan, 2008) which mean security of people, sustainability/growth and welfare of people. This is very much aligned to today's corporate world where an organization need to look after the security, growth and welfare of its employees and other people who are part of its ecosystem. Arthashastra says that only a king with strength and wealth can protect the interest of its subjects and similarly a financially strong firm with good profits can only think about and in practice protect the interest of its stakeholders.

Indian rules mandate the firms to spending 2% of net profit on CSR related activities and this money by organization is spent on health, education, environment protection etc. Thus the activities of organization closely resemble the responsibilities of welfare state in olden times. Kautilya had “stressed the importance of happiness to all stakeholders of an organization as in the stakeholders' theory” which suggests that organization should not only work for benefit of themselves but also towards betterment of all (Singh, 2016; Muniapan and Raj, 2014).

5. Training, Development and Group Dynamics

In modern management the critical role of training and development cannot be denied. Most organization spends a substantial amount of money in training and enrichment of its employees which include even the top management. Kautilya has also stressed the importance of learning and suggests that the king should keep an open mind, despise nobody and listen to everyone.

Arthashastra says that wise men make sense of even child's words. This is very much applicable in business today as new business ideas come from listening and learning from others.

The Arthashastra lays emphasis on the training, learning and discipline of king. Even the learning and training of crown price has been greatly emphasized in Arthashastra. This has been stressed so that the prince is able to gain the necessary skills that are required to become a good king whenever the time comes. The prince was supposed to take Veda education from gurus, had to practice celibacy till 16 years and devote most of their time in education and skill development. This concept is very much aligned to the idea of training which is given to junior employees so that they gain the skills required for higher positions.

In today' organization there is emphasis on  continuous training and development of employees specially the management. This has been even stressed in Arthashastra which says that a king should learn new things and revise already learnt things during the free time in day and also in night. Business organizations too expect their managers to continually strive for learning whenever they get time.

Moreover, group learning and group dynamics are being attached high importance in modern business firms and important decisions related to product development, future planning et are taken at group level. Focus group discussion and brainstorming are being emphasized so that diverse thinking from different points of view can achieve better solutions to business problems.

Arthashastra too has laid the importance of discussion with councilors and ministers. It points out that “just as a single wheel cannot move a cart, the king alone cannot ensure the welfare of the State” and thus a king should consult advisors and experts of respective fields before taking decisions. Thus, the advices of Kautilya in Arthashastra to kings regarding learning, continuous development and collaborative decision making are very much applicable to managers of modern businesses.

6. Corporate Governance

Corporate Governance is an ancient concept and is relevant in contemporary business as development of welfare concept. Kautilya in his work took a holistic and integrated approach to governance and provided an innovative dimension to corporate governance, which unfortunately remains neglected in pursuit of profit maximization. Manjula and Ramalingam (2015) recently described that welfare of business means not only growth and advancement of business in terms of holistic growth of the society. There is a requirement of lot of answerability and commitment among the various authorities within the organization in this process. The history of effective Corporate Governance can be traced back to Ancient period. They state “Arthashastra advises never to forget the two pillars of the art of governance: Nyay, the justice and Dharma, the ethics”.

Lot of archeological evidences, scriptures and religious text give indication to the existence of efficient Corporate Governance practiced in the past times. The contemporary approach of Corporate Governance is talked is more concerned with business as compared to over all administration of state in Ancient India. Research focused on concept of Corporate Governance which existed during Ancient times had focus on administration and management of policy.

Chanakya's Arthashastra also explores the lessons in corporate governance, signifying his contribution towards organizational science in ancient India.

Another significant study recently conducted by Hassan (2015) delineated that major research and practices in the domain and its sustainability have been largely dependent on the West and its concepts and models of governance, versus good governance as well as global governance. On the other hand Indians claim these concepts and models of governance as well as its patterns and indicators are of Indian origin. Not only this, the area of governance had found prominence in Asian scholastic works and government in the ancient times. For an in-depth understanding of the eastern concepts Kautilya's Arthashastra is an essential reference. Kautilya teaches that the internal enemies should be conquered first in order to be successful. The internal enemies in an organization are those managers who are not working towards benefit of the organization but are pursuing their own goals. To keep a tab on such managers by putting proper check practices is termed as corporate governance in the modern world.

7. Value based Management

With the augmented growth in corruption level in business organizations there is a necessity of value based management in organizations. Every now and then one sees irregularities and cases of cheating in the Indian stock market, clearly points out to the worsening tendency in the ethical attitude of people in the decision making authorities of big organizations. Kumar and Rao (1996) through their research delineated that there is a burning requirement for guidelines for promoting moral behavior among these decision makers. The relevance of Kautilya's framework is that it offers a scaffold for the practice of value based management. A prominent feature of Kautilya's Management philosophy as compared to other modern management thinkers is that it has a high degree of similarity with the accessible models of ideal behavior of manager. Following the Kautilya's approach the contemporary models researchers recognizes the significance of various components like organization philosophy, for the effective practice of value based management.

Arthashastra uniquely defines that this value based framework is an elevated order of an organization. This is further explained in terms of YOGAKSHEMA also known as social interests leading to the foundation of the value based management framework. Social progress, development and welfare are the principals based on which an organization strives a sense of self fulfillment to the employees.

Kautilya's framework would be most useful to such a business corporations which are of the thought or mindset that the objective of business must be to keep society in attaining progress and welfare. The decision makers of such firms would realize a sense of personal fulfillment through contributing to welfare of the society. The integrated framework developed in Arthashastra would be a guide lines as a holistic approach towards the practice of value based management.

According to Kautilya the organization's philosophy should be clearly defined and the leadership should be such that it complements the organization philosophy. Kumar and Rao (1996) state that Arthashastra suggests development of a corporate culture based on organization philosophy and leadership and this culture should imbibe the values that are supposed to guide the organization's members and should be able to check unethical practices. All this should then be supplemented with general value guidelines such as truthfulness, uprightness and compassion. It is also suggested the leaders should take continuous feedback of the system. The organization philosophy, value based leadership, organization culture and the general value guidelines will help the organization in achieving its objectives.

Arthashastra thus has provided a comprehensive framework for value based management of an organization which was valid in ancient times and is still relevant for business organizations in modern times.

8. The SHASTRA Model

The above discussion clearly indicates that even hundreds of years ago Kautilya through his shastra which is known as Arthashastra had given critical principles of management which are valid even today. These philosophies are being applied to modern business as they strive for shareholders' wealth maximization. These principles of Arthashastra can be modeled and abbreviated as SHASTRA.

S stands for Social and society development

H stands for Higher propose

A stands for Authority and administration

S stands for Standards and values

T stands for Training and development

R stands for Reliability and transparency

A stands for Association and group dynamics

The proposed SHASTRA model is self explanatory. 'S' highlights that the purpose of all business organizations is social development of all stakeholders of the firm and not just profit maximization. 'H' stresses that top management should not just concentrate on self development but must be devoted for higher purpose which is maximization of shareholders wealth and growth of all stakeholders. 'A' signifies the importance of good administration and authority which stresses the principles of effective corporate governance as suggested by Kautilya. The next 'S' lays emphasis on the importance of having higher standards and values in management. This derives from the principles of value based management. 'T' signifies the importance of continuous training and development of all employees including top management to increase their skill and knowledge level. 'R' lays high emphasis on reliability and transparency of the system. This is achieved if the business follows effective corporate governance practices. Finally, 'A' highlights the importance of association and group dynamics i.e. it stresses on significance of group discussion, consultation with area experts and brainstorming. Thus the

SHASTRA model derived from teaching of Arthashastra is able to act as a guideline for effective business management.

Conclusion

Indians look into ancient study based models from cultural roots, and Kautilya's Arthashastra is one of such text which is testimony to the same. On studying the various aspects of Kautilya's Arthashastra the existence of Kautilya's Arthashastra and its management relevance on the foundations of management in organizations can easily be gauged. It is important to look at this ancient management text, from time to time as they provide intelligent interpretation to apply effectively in the context of modern day

management.

There are several lessons that can be learned from Kautilya's Arthashastra but still not many managers are aware that the lessons of Kautilya's Arthashastra are relevant to the corporate world.

This study tries to relate the teachings of Arthashastra on stakeholders' welfare to the modern business management by discussing corporate governance, corporate social responsibility, training and value based management. The principles of Arthashastra and Chanakya Neeti can directly be applied to present day corporate world to achieve profits from multinational corporations without following any unhealthy/unethical business practices. This concept is called as Shubh Labh i.e. auspicious profit.

Commercial Practices In The Ancient Indian Peninsula: Glimpses From Kautilya’s Arthashastra by Monsurur Rahman

ABSTRACT

Very few westerners ever heard of Chanakya, a.k.a Kautilya. Kautilya is credited with compiling the treatise on statecraft called the “Arthashastra.” This treatise contains fifteen distinct chapters or parts encompassing all components of statesmanship that a ruler needs to run the affairs of his kingdom. This paper briefly narrates some of the commercial practices prevalent in Ancient India enumerated in Kautilya’s Arthashastra during the Mauryan period.

INTRODUCTION

The Arthashastra is a comprehensive treatise covering virtually all aspects of human life. Artha means wealth and Shashtra means science; thus Arthashastra literally implies the science of acquiring and managing wealth. Arthashastra was conceived and named as the Science of Wealth. It focused on creation of wealth as the means to ensure the well being of the state (Raghvan, 1998). The treatise comprises a

cohesive whole, including economic administration of the state, trading, imports/exports, retailing, transportation, warehousing, taxation, and consumer welfare. A significant part of the Arthashastra deals with the science of wealth

or economics. When it deals with politics, the Arthashastra describes in detail the art of government in its widest sense - the maintenance of law and order of efficient administrative machinery (Rangarajan, 1987).

Kautilya was a great proponent of the notion that the state or government has a crucial role to play in maintaining the material well-being of the people in a nation. Arthshastra focused on preservation of the state through alliances. Arthashastra viewed good counsel and fair judgment as the constituents of the state’s power and

as more useful than military might. Arthashastra takes a managerial perspective on managing the affairs of the state (Raghvan, 1998). A perfect balance had to be maintained between state management and people's welfare, and this

was the essence of Kautilya's economic treatise, Arthashastra, created about 2,300 years ago.

The next section of the paper gives a brief historical background behind the compilation of Arthashastra.

Arthasastra contains virtually all aspects of commercial transactions in excruciating detail. The remainder of the paper then describes how these functions were performed in Ancient India during the Mauryan period.

HISTORICAL BACKGROUND

Part myth, part legend, and part history, Kautilya was believed to be the person instrumental in creating the Mauryan dynasty. He served as teacher, mentor, and chief minister of the Mauryan ruler, Chandragupta Maurya.

Chandragupta was contemporary of Alexander, the Macedonian conquistador who, history recalls, conquered much of the then known civilized world. Alexander died around 323 BC and Chandragupta Maurya established his kingdom around that time. Some Greek historical records suggest that he may have visited Alexander in 326 BC.

Not much is known about the early life of Kautilya, but the legend says that his father belonged to the Kautilya Gotra (clan); hence he is called Kautilya. History suggests his given name was Vishnu Gupta. To make things more confusing and, at the same time, interesting for the historians, he was also known as Chanakya since he

was born in the village of Chanak. The diplomatic quarters in the capital city of modern India, New Delhi, is named Chanakyapuri in honor of Chanakya.

Before becoming the chief minister of Chandragupta Maurya, Kautilya was a professor at Takshashila University. The seat of the Mauryan empire was located in Patna, Bihar province of India. University professors at that time were polyhistors who used to teach a variety of subjects, mostly to princely class. Kautilya mentored

Chandragupta Maurya in the diverse fields of knowledge that he would eventually need to establish his kingdom.

Interested readers may consult the references at the end of the paper to know more about his life and work.

The Kautilyan Economy

The Arthashastra divides the economy of the state into three basic types of activities - agriculture, cattle rearing, and trade. The state accumulated wealth by generating resources in the form of grains, cattle, gold, forest produce, trade, and labor. Kautilya created a centralized administration for the newly created empire. Because the

regime was authoritarian in nature, everything was organized in the interest of the state. An elaborate civil service existed and there were departments for accounts, revenue, mines, arsenals, taxation, agriculture, trade, and navigation (Edwardes, 1961). Besides maintaining the existing productivity in forests, factories, mines, and cattle herds, the King was also responsible for promoting trade and commerce by setting up market towns, ports, and trade routes, building storage reservoirs (Rangarajan, 1987).

The whole economic policy was regulated and controlled by the state. It was the largest employer of labor.

All industrial and natural resources were owned by the state. The state also entered the market as a trader. It engaged in selling activities at the marketplace. It had its own superintendent of commerce who would supervise the dealings in the market, and the revenues earned by sale of resources owned by the state would be directed to the treasury.

Thus, trade benefited by adding wealth to the state. The principle of modern mixed economy can be traced back to Kautilya’s times (Mukherjee, 1976).

Establishment of the vast empire acted as a stimulus to production and exchange (Shastri, 1957). Weavers and other handicraftsmen, braziers, oil-millers, bamboo-workers, corn-dealers, and artisans fabricating hydraulic engines started organizing themselves into economic corporations known as guilds, which often served the purpose of modern banks (Thapar, 2003).

Principles of Trading

Trade was a controlled process in Ancient India. Commodities and products (of the countryside) could not be sold in the places of their production but were sold only at designated markets or brought into the city and sold

after payment of a duty. The sale of all commodities belonging to the crown (produced on crown property or received into the treasury) was centralized; i.e., conducted only at a specific location - generally the center square in the marketplace of the city. The officers in charge of sale of these crown commodities would deposit the proceeds in

a wooden box; and at the end of each day of sale, they would hand over the money box, the balance stocks, and their weighing and measuring instruments.

Certain merchants were also authorized by the state to sell commodities in the marketplace at prices fixed by the chief controller of state trading. When commodities existed in excess supply, the chief controller of state trading would have the authority to build up buffer stock by paying a price higher than the market price. When the

market price would reach the support level, he would adjust the price according to the situation. Prices could be fixed taking into account the investment, the quantity to be delivered, duty, interest, rent, and other expenses. The chief controller of state trading would ascertain the profitability of a trading operation with a foreign country, in

order to allow exports of commodities and sales abroad. The price of goods to be sold and the gains thereof would be estimated and weighed against those obtained through domestic trade in order to sanction the exports (Rangarajan, 1987).

The state provided encouragement to traders dealing in the sale of imported goods. Merchants - foreign and domestic - who brought in foreign goods by caravans or by water route, enjoyed such incentives as exemption from taxes and higher profit margins, and immunity from lawsuits (so as to make profits). The profit margins allowed to merchants would be on the order of five percent for locally produced goods and ten percent for imported goods.

Import and sale of foreign goods was encouraged in order to make them freely available through state-approved channels all over the country (Rangarajan, 1987).

Trade - both foreign and domestic - was encouraged as it constituted a considerable portion of the state revenues (Thapar, 2003). Trade was partly in the hands of officials and partly in those of shopkeepers or traveling merchants (Shastri, 1957). The Arthashastra prescribed that profits be shared equally among workmen who labored

together toward a common goal. However, proportionality in sharing of earnings would be applied when division of labor existed (Kollam, 2001). So, officials and employees who shouldered higher responsibilities were entitled to higher earnings in proportion with their status and work patterns.

Private enterprises were allowed to run side by side with state-controlled traders; however, private traders were looked upon with suspicion by the people and were taxed and fined severely by the state if indicted with malpractice (Mukherjee, 1976). Their propensity to fix prices by forming cartels, make excessive profits or deal in

stolen property, was guarded against by making these offences punishable by law. Kautilya emphasized honesty and justice in trading. He recommended heavy fines for traders who would collude and fleece buyers by conspiring together to hold back wares and later sell them at higher prices (Irani & Silver, 1995). The Chief Controller of Private Trading kept a watch over merchants, by periodically inspecting their weights and measures and ensuring that they did not hoard merchandise, adulterate foods, or add excessive mark-ups (Rangarajan, 1987). Trust and confidence in the measurement system; i.e., the weights and measures, and also protection against counterfeiting of coinage, was necessary to ensure the state’s integrity of commerce (Birch, 2001).

Imports/Exports Activities

International trade has always been an essential element of commerce during Ancient India. Its border was accessible through several routes which were paved for trading commodities. Commercial activities for import/export purpose required establishing contacts with foreign traders for shipping/receiving goods via these trade routes. The state employed officers who traveled to foreign lands as its dignitaries. They studied the buying and selling activities and consumption patterns of merchants and customers in foreign markets and recognized potential markets for sale of indigenous goods. Commerce relations were built with diplomats from overseas for

exchanges of commodities. The Mauryan government built ships and let them out on hire for transport of merchandise (Thapar, 2003). Traders had to pledge their assets - like their homes or lands - as collateral when hiring ships for transporting their goods. The fair value of the goods being shipped into or out of the country was quoted by

the state (customs officers) and the merchants were assessed the hiring fee which was to be paid upon return of the vessels.

Goods traded were classified into three kinds: 1) those produced in the countryside, 2) those produced in the city, and 3) those imported from other countries. All three types of goods were subject to payment of customs duty whenever they were imported (into the city) and/or exported (from it). The frontier office had the vested

authority to inspect the caravans carrying foreign goods and classify the goods as those of high value or low value based on nature of the products and the value quoted for each of them by their respective merchants. The packages

would be sealed with the official seal and identity papers issued to the merchants, along with the appropriate cess (i.e., the duty levied upon the goods in that consignment).

All details about the caravans and their associated consignments would then be communicated to the Chief Collector of Customs. On arrival at the city gates, the collector and his office would inspect the caravans and make his appraisal on the basis of information received from frontier officers or spies of the king. Some goods were exempt from duties, mostly for religious ceremonies or goods meant as wedding gifts. All dutiable goods would be weighed, measured or counted, and the duty payable on them would be collected at the ports of entry. Penalties

would be levied on violators who tried to cheat or escape payment (Rangarajan, 1987).

This system of inspecting goods twice was enforced in order to ensure that merchants did not sell their products at any locations other than the marketplace, which was the sole center designated by the state for buying and selling of goods. Also, sale at the marketplace alone would ensure that merchants did not make excess profits, as they would be continually subject to scrutiny by the law. After payment of duty, a merchant would typically enter the marketplace. He would place himself near the customs house and declare the type, quantity, and price of his

goods. He would call out for bids three times and sell to anyone who was willing to buy his products at the price demanded. If there was competition among buyers and a higher price was realized, the difference between the call price and the sale price, along with the duty thereon, would go to the treasury (Rangarajan, 1987).

Wholesale Trade and Retailing

Retailers played a significant role in trading activities. An agent selling goods on behalf of another party was paid on a commission basis. Increased sales, with higher profits, meant more commission for the agent, which served as an incentive for him to market the products better and sell more of them. If the price realized was lower

because of missing the best opportunity for sale, the agent would pay the owner the cost of the goods at the time he received them and the normal profit. Whenever no profit was made, the retail seller would pay, to the wholesaler or the owner of the commodities, only the price of the goods. If the price fell between the time of entrusting the goods and the time of sale, only the lower price actually realized would be payable. In case of goods sold abroad and those sold after a lapse of time, the amount payable would be reduced by the expenses and losses, if any (Rangarajan,

1987).

This pattern of business shows that there were wholesalers, retailers, and direct marketers in their trade channel. Goods which were sold by the producers themselves in the marketplace exhibit a pattern of direct marketing. Agents played the role of retailers selling goods in the market without assuming title of the goods.

Merchants, who bought goods from indigenous/foreign manufacturers and transported them in caravans and ships to the marketplace, sold these goods in the market at the fair price and pocketed the earnings. This is very similar to

modern marketing channels of distribution where wholesalers assume title and ownership of goods from their producers and then sell these goods in the market at their price. Brokers and middlemen did play their role too in trade, even in those days; however, they were always looked upon with skepticism and hence the controller was to watch over their activities. These brokers played only the role of intermediaries for passage and sale of goods in the open market but never claimed title or ownership of the goods that they were to sell on behalf of the producers, much like the way it is done today.

Role of Warehousing and Transportation

The Chief Superintendent of Warehouses was in charge of granaries and warehouses for fats and oils, sugar and honey, salt, vinegars, fruit juices, sour liquids, spices, dried fish, dried meat and vegetables, and cotton and flax.

These were basic items and amenities necessary for survival of the population; hence, their preservation was imperative for the state. The superintendent would keep an account of all commodities received into the warehouses and duly classify the inventory held in there as revenue received from taxes, exchanges on barter basis, borrowings, aid, labor, gifts to the king, surcharges, or miscellaneous receipts (Rangarajan, 1987). During the Maurya period, villages were encouraged to have their own grain reserves which would serve as buffers during famine and the kings

also maintained their own emergency stocks (Bhatia, 1970).

Prior to this era, items would be manufactured close to the sources of raw material and artisans would congregate from surrounding areas. As trade routes widened during the Mauryan period, development of roadways for inter-regional exchange activities of commodities started cropping up. With interconnections of roadways and

sea-routes, there was a greater dispersal of craftsmen, with many gathering in centers where there were markets.

Exchange of goods of various trades, from food and clothing to metals and mining, was facilitated over long distances (Majumdar, Raychaudhuri, & Datta, 1967).

Transportation of goods and commodities by sea and land was an essential function of the state. The Chief Controller of Shipping and Ferries had a wide range of responsibilities – supervising maritime safety and rescue, running shipping services, hiring ships and boats with or without crew, organizing ferries, controlling the movement of foreign merchants, collecting revenue such as road cess, customs duty, and ferry charges, and ensuring security by keeping a watch over undesirable persons using the ferries.

The Chief Controller of State Trading was conversant with the details, pertaining to all state monopoly commodities (whether imported or produced locally), such as the state of public demand, price fluctuations, relative prices of high and low value goods, and the optimum time for buying, selling, stocking, and disposal (Rangarajan,

1987). Several merchants and traders were also involved in transporting commodities via caravans and ships. A toll had to be paid on the movement of merchandise from one place to another (Edwardes, 1961).

CONCLUSION

This paper briefly discussed different commercial activities that used to take place during the Mauryan period in Ancient India. This discourse reflects on how trade and commerce of the civilizations has always played a vital role as an integral part in the daily interaction of its citizens. The terminologies employed may have evolved,

but the nature of the transactional and relational components of exchange, and their role in trade and commerce seem consistently pertinent over time.

AUTHOR INFORMATION

Monsurur Rahman, DBA, CPA, CMA, is a Professor of Accounting at Indiana University of Pennsylvania. He received his doctorate from Southern Illinois University-Carbondale. His research has been published in The National Accounting Journal, Southwest Business and Economics Journal, and Journal of Accounting and Finance Research as well as many national regional conference proceedings. His research interests are in the area of Financial and Managerial accounting. E-mail: mrahman@iup.edu

Framarz Byramjee is an Associate Professor of Marketing at Indiana University of Pennsylvania, USA. He has a Ph.D. in Business Administration from Florida Atlantic University, along with a master’s degree in systemsengineering/ business and an engineering degree. He has industrial work experience in various fields of engineering

and business. His teaching and research activities pertain to marketing strategy and analysis, marketing research, business logistics, and operations. E-mail: byramjee@iup.edu (Corresponding author)

Reza Karim is a Management Consultant based in Haslett, Michigan. He received his doctorate from SUNYAlbany.

He has extensive teaching and research experience. His current research and consulting service is in the areas of strategy, organizational theory, and supply chain management. E-mail: rkarim@att.net

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Courtesy: International Business & Economics Research Journal – May/June 2014 Volume 13, Number 3