Vedanta and CSR

The “duty” and “action” for CSR from the Vedanta

By

DR. BALAKRISHNAN MUNIAPANSwinburne University of Technology, Malaysia

Email: [email protected]

Introduction

• This paper explores CSR values from theVedanta; with emphasis on the concept of “duty(dharma)” and “action (karma)”.

• From a survey of CSR literatures fromphilosophical and religious perspectives, therehave been some studies made by scholars onIslam, Christian and Confucian CSR values.

• However, Vedanta, expect for few articles; is yetto be fully explored in the context of CSR.

Methodology

• Hermeneutics, is the interpretation of scripturesand classical literatures

• For the purpose of this presentation, theinterpretation of selected verses from the Vedanta(Vedic literatures); have been made to provide itsrelevance to CSR values.

• Hermeneutics is applied based on 4”I”s –Identification, Investigation, Interpretation andIntegration (Muniapan, 2010).

Limitations

• The teachings of Vedanta is primarily onphilosophy, religion, and spirituality.

• Vedanta is viewed as an Indian work, thereforenon-Indians or Indian who are not familiar willnot be able to accept the teachings of Vedanta.

• However, the fundamental teachings of Vedantasuch as honesty, truth, integrity, morality, etc. isuniversal in its application and is found in mostphilosophical and religious teaching.

Corporate Social Responsibility (CSR)

• The World Business Council forSustainable Development states that:

“Corporate social responsibility is thecontinuing commitment by business tobehave ethically and contribute toeconomic development while improvingthe quality of life of the workforce andtheir families as well as of the localcommunity and society at large.”

CSR from a Philosophical Perspectives 1

• In the academic journals, there has beenconsiderable research on the relationshipbetween religious (philosophical) values andbusiness (includes CSR).

• There have been numerous conceptual studieswhich have linked and integrated the religiousphilosophies & scriptures such as the Bible &the Quran into business. The conceptual workhas also led to empirical research.

CSR from a Philosophical Perspectives 2

• In the study by Brammer et al (2005) on religion &attitudes to CSR, data collected from a large crosscountry sample of over 17,000 individuals confirmed thenotion that religious individuals do tend to hold broaderconceptions of the social responsibilities of businessthan non-religious individuals.

• Among the world’s major religions, Christianity &Islam have received wider attention from a business &CSR perspective. Vedanta however is yet to be exploredin the context of CSR; therefore this presentation istimely as it fills the gap in the literature.

Vedanta

• Vedanta is drawn primarily from the Vedicliteratures. The Vedic literatures are composedof many books.

• For this presentation, few examples from theBhagavad-Gita (Vedanta) will be explored inCSR. Some CSR wisdoms are also drawn fromtwo of the ancient text on political economics& ethics namely the Arthashastra by Kautilya(4th Century B.C) & the Thirukkural byThiruvalluvar (2nd Century B.C).

CSR duty (dharma) from Vedanta 1

• Duty or dharma is given great importance inVedanta. Sarva loka hitam in Vedanta referredto ‘well-being of stakeholders’. Sukhasyamulam dharma - the basis of happiness isdharma (Kautilya).

• There are four principal kinds of dharmaknown as chaturdharma which are highlyrelevant to CSR namely; Rita dharma, Varnadharma, Ashrama dharma and Svadharma.


• Rita dharma or the universal duty and theprotection of the environment falls within thisscope of dharma. This is global socialresponsibility (GSR), universal socialresponsibility (USR) or an environmentalsocial responsibility (ESR).

• Varna dharma or social duty defines theobligations and responsibilities within thenation, society, community and business Thisis directly relevant to social responsibility(CSR).


• Ashrama dharma or duties of life's stages is adevelopmental dharma. The natural processof maturing from childhood to old agethrough fulfillment of the duties of each ofthe four stages of life namely brahmachari(student), grihastha (householder),vanaprastha (elder advisor) and sannyasa(religious solitaire). This is the individualsocial responsibility (ISR) in relation to thefamily, organization and society.


• Svadharma or personal obligation is accordingto one's own qualities (gunas), mental andemotional nature.

• Svadharma is determined by the sum of pastkarma and the cumulative effect of the otherthree dharmas.

• This is personal social responsibility (PSR) inrelation to the individual life and growth.

CSR dharma from Vedanta 5

• Vedanta emphasizes that the corporationsshould not run away from their dharma.

• The Bhagavad-Gita stressed that duty(dharma) needs to be done withoutattachment and for those who do their dutywithout attachment will attain thesupreme goal - (B.G. 3.19).

CSR Action (karma) from Vedanta 1

“Don’t do to others what you don’t want done to you.”

• In Vedanta, the law of karma (cause and effect) isexpected to motivate the business people to carry outtheir duties to serve humanity (CSR).

• This philosophy implies that the present nature of anindividual’s life (effect) or organizations is determinedby their previous actions (cause). Good karma need to beaccumulated by business for long term benefits.

• In the context of CSR, organization should not only beinterested in their own welfare but also the welfare of allstakeholders and society (sarva loka hitam).



• Bad karma (vikarma) which is due to the lust of the leaders,compels them to commit such unethical practices is theroot cause of argument against CSR.

• As the fire is covered by smoke, as the mirror is coveredby dust, or as the embryo is covered by the womb, theleaders are covered by different degrees of lust (Gita, 3.38).

• Anyone who takes up a leadership position in CSR mustfrom the very beginning curb this great lust by regulatingtheir senses (Gita, 3.41).

• Sthitaprajna: LEADERS must conquer their enemieswithin - lust, anger, greed, arrogance, envy and pride.

• In the chariot of the body, thefive horses represent the fivesenses (tongue, eyes, ears, noseand skin). The reins, thedriving instrument, symbolizethe mind, the driver is theintelligence, and the passengeris the self.

• Leaders should be aware oftheir consciousness and usetheir intelligence to control themind, they should not let themind to be controlled by thesenses.

The Chariot Analogy



• The Vedanta promotes the concept of nishkamakarma; a perspective on action and decisionmaking that emphasizes performing one’s dutieswithout attachment to the fruits thereof– andwhere both the action and the fruits are offeredto the divine.

• In the CSR context, the societal contributionmust not have with any expectations in returnbut rather as a duty need to be done to thesociety.

CSR Leadership from Vedanta 1

• The success and failures of any CSR initiative canbe attributed to leadership. This implies that for aCSR initiative to be successful, the leadership andsupport from the top management is essential.

• The organizational leadership needs to setexample to their people or followers as whateverthe leader does, the people will follow andwhatever standards or example the leader setspeople in general will follow (B.G. 3.21).

• Leadership focus must be on sreyas (good) ratherthan preyas (pleasant).


• Kautilya (Arthashastra, 4th Century B.C) states inthe happiness of his subject lies the happiness ofthe king; and in their welfare his welfare; theKing shall not consider as good only that whichpleases him but treat as beneficial to himwhatever pleases his subjects– the welfare of themany and the happiness of the many.

• In fact, this CSR concept of the happiness of themany need integrated into the area of corporatemanagement as the basic principle.


• Thiruvalluvar who wrote the Thirukkural; justlike Kautilya, dealt with the characteristics ofsocially responsible organizations & theresponsibility of a leaders, Thiruvalluvar says:the king (leader) who administers based ondharma and protects his (her) people will beconsidered of divine quality (sattva guna).

• If the leaders protects the world and actsaccording to dharma, then dharma itself willprotect them (and their organizations).

Implementing Vedanta CSR in Organization 1

• Developing “leaders” (not merely leadership)self awareness (EI), character development &positive human values.

1 Moral reasoning

2 Moral knowing

3 Moral actions

HEAD

HEART

HANDS HANDS

Implementing Vedanta CSR in Organization 2

Development people inorganization on positiveshuman values such astruthfulness, honesty, ethicalconduct, humility, innerpeace, love and non-violence, integrity andcharacter development (SI &SQ elements in theLEADERSHIP WISDOM).

CSR Values from Vedanta

• Vedanta is relevant to CSR as it promotesthe welfare, and happiness of all beings.This is also indicated by a popular Vedicprayer - loka samastha sukhino bhavanthu -which means that all may be happy andhealthy.

• These ideals can be extended to providemodels for CSR in the context of business.

Conclusion

• Vedanta is as wide as an ocean, it is not withinthe scope of this presentation to explore CSRvalues from all the literatures within Vedanta.

• Vedanta starts with PSR and moves to ISR;promotes CSR and goes even beyond to GSR(or USR or ESR) which stands for the good ofhumanity social, cultural, moral and spiritualfrom global perspectives.

The Key Question

Finally, How do I (We) CHANGE to inculcate these

values in organizations?

“Everybody wants to change the world, but no one thinks of

changing himself” - Leo Tolstoy

Thank You

Economy & Finance

Vedanta and CSR