Kautilya's Arthasasthra
Kautilya's Arthasasthra
Arthasasthr
a
Unit : 12 - Managerial Effectiveness
and Ethics
The Author
Components
The seven components -
Svami (the king)
Amatya (ministers)
Janapada (the
territory)
Durga (a fortified
capital)
Kosha (the treasury)
Danda (justice or
Philosophy
Believed that it is the king's duty to seek material
gain, spiritual good and pleasures.
Kautilya thinks that for a king to attain these three
goals, he must create wealth, have army and should
conquer the kingdoms to enlarge the size of his
state by strategically not by war.
Morden Day Concepts
• 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.
• The Arthashastra delves into the importance of ethical leadership, fostering a
conducive work environment, and nurturing talent.
• Kautilya in his Arthashastra talks about the virtues of leadership, honesty, hard
work and what an ideal leader should do in order to governed his state smoothly.
• In the Shastra, Chanakya advised the ruler of the State (svamin) to manage his
kingdom on the principles of 'Prabhu Shakti' or vision, 'Mantra Shakti' or mission,
and 'Utsah Shakti' or motivation. For professionals, these principles are key to
manage the internal dynamics of a firm and drive performance.
• The Arthashastra of Kautilya offers a useful framework for economics. It offers
practical economic insights. It may be used to explain a number of contemporary
economic concepts and is relevant to our day. He provided a variety of economic
policy options to encourage the economy's growth
Management Lessons