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2016 | Book

Ethical Leadership

Indian and European Spiritual Approaches

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About this book

This original contribution to business ethics brings together chapters by leading European and Indian scholars and practitioners. Addressing issues of human values, ethics, spirituality and leadership in business the authors aim to create a dialogue and interchange between Indian and European cultural traditions. Topics include spiritual orientations to business in Hindu, Buddhist and Christian traditions; the effect of spirituality upon contemporary leadership theories; sustainable business models in India and Europe and a comparison between Indian and European philosophies of leadership. In exploring what India and Europe can offer to one another in the development of ethical business leadership, Ethical Leadership aims to demonstrate ways to achieve sustainability, peace and well-being.

Table of Contents

Frontmatter
Correction to: An Ethics of Care Induced from Kautilya’s Wisdom
Sharda Nandram, Ankur Joshi

Introduction

Frontmatter
1. Questions and Themes in Ethics and Leadership
Abstract
The exchange of ideas between India and Europe about economics and politics dates back centuries. However, the modern India-Europe dialogue on the spiritual and ethical basis of management and leadership started in the late twentieth century. Leading figures in this dialogue include S. K. Chakraborty (IIM Calcutta) and Peter Pruzan (Copenhagen Business School). They started to explore the differences and similarities between Indian and European approaches to management theory and practice. The common convinction is that without deep spiritual reflection, business leaders will not be able to contribute to restoring the endangered ecosystems of the Earth, or to providing decent livelihoods for present and future generations. The good news is that there are vast resources of long-accumulated Indian and European spiritual wealth and wisdom available for immediate use in this urgent task of transformation.
Madhumita Chatterji, László Zsolnai

Spirituality as an Inspiration for Leadership

Frontmatter
2. Why Do We Need a Spiritual-Based Theory of Leadership?
Abstract
Interest in spirituality is now expressed through concepts such as spiritual-based leadership, deep change, spiritual capital or spirituality in the workplace. Enlightened business leaders often speak about their interests in Zen or other meditative practices. Eastern and Western religious traditions are explored as sources of wisdom and ethical discernment. Without a theoretical framework, spiritual awareness will remain the personal interest of a minority of business leaders, or will only be contained in the stories of some exceptional companies. Embedding spirituality into management and decision-making processes requires a spiritual-based theory of leadership.
Luk Bouckaert
3. Responsible Leadership and Reasonable Action
Abstract
Mainstream leadership practices often create negative impacts on nature, future generations and society as a whole. The principle of responsible leadership requires leaders to achieve their objectives in ecological, future-respecting and pro-social ways. Responsible leadership is consistent with the concept of reason advocated by Indian-American economist Amartya Sen. Reason is the discipline of subjecting one’s choice of action to reasoned scrutiny. Leadership choices should satisfy the criteria of ‘ecological reason’, ‘reason for future generations’, and ‘social reason’. Spirituality plays a major role in developing responsible leadership. The spiritually enlightened leader goes beyond self-interested calculations and exercises genuine empathy toward others while benefitting from an all-encompassing perspective.
László Zsolnai
4. An Ethics of Care Induced from Kautilya’s Wisdom
Abstract
According to the ancient Indian scholar Kautilya (350–275 BC), a leader can only be successful if he or she considers philosophy to be of equal importance to economics and politics, because a philosophical foundation will infuse into praxis the principles of self-regulation, care, and transcendence. Although Kautilya’s teachings originally referred to leaders in the context of politics (heads of state), they are applicable to other forms of leadership, too.
Kautilya took a holistic view of leadership which can now be equated with stewardship theory. The lack of the stewardship concept is a weakness in mainstream leadership approaches, but it is now being incorporated in the management theory of stewardship. The concept of transcendence in leadership theory is new. Transcendence is the understanding that we are part of a larger universe, have extended responsibility, and must obey the laws of nature.
Sharda Nandram, Ankur Joshi
5. A Multidimensional View of Leadership from an Indian Perspective
Abstract
There now exists a significant global movement that supports sustainable practices, green thinking, environmental consciousness, a wider sense of social responsibility and a more inclusive economics. We are also starting to witness a change in the fundamental objectives of business, away from a pure focus on profit to a more inclusive outlook. Such a transition calls for a change in the thought processes of leadership. India, with its rich and well-established spiritual traditions, can provide a roadmap for the realization of this transition. A multidimensional view of leadership can be developed by adopting the Purusharthas, that are four goals of human life according to the Indian tradition, as the foundation of ethical leadership, and by absorbing guidance from the Indian texts like the Mahabharata and the Bhagavad Gita. They demonstrate the relevance of Indian principles to modern-day leadership, and explain how leadership can incorporate ethics by paying homage to Indian scripture.
V. Adinarayanan, V. Smrithi Rekha, D. G. Sooryanarayan
6. Indian Spiritual Traditions as Inspiration for Ethical Leadership and Management in Europe
Abstract
The influence of Indian Hindu, Buddhist, and Sufi traditions on the work of European thinkers and management practitioners is considerable. While many management and organizational scholars recognize that cultural differences can significantly influence management and working practices, the impact of applying wisdom from other cultures on management practices remains largely unexplored.
The work of Arthur Osborne (who was influenced by Sri Ramana Maharshi, a Tamil guru), Albert Schweitzer (influenced by the Bhagavad Gita and Karma Yoga), Ernst Friedrich Schumacher (influenced by Buddhism and Gandhi), and Hendrikus Johan Witteveen (influenced by Hazrat Inayat Khan, a North Indian Sufi) are especially worthy to study. This chapter provides the background for introducing ethical principles from Indian spiritual traditions into management, while also demonstrating that such principles do not contradict with so-called ‘Western’ ethical approaches. The comparison of Indian and European traditions suggests that religion does not necessarily divide people, but can create common ground for better communication and ethics.
Gerrit De Vylder, Hendrik Opdebeeck
7. Integrating Servant Leadership and Ethical Leadership
Abstract
Leaders typically display the behavior needed to consistently influence and motivate subordinates, and are equipped with ethical and moral values and a zeal to serve. There is a need for more servant and ethical leadership. Ethical leadership is transformational leadership coupled with a moral foundation, while servant leadership refers to an attitude of serving followers through the principle of stewardship. This paper critically reviews servant leadership and ethical leadership models and offers a blended model of serving that fits into the organizational context. Their model stresses that leaders must be trained in morals to promote the common good.
Asi Vasudeva Reddy, A. V. S. Kamesh
8. Spiritual-Based Leadership from the Perspective of the Bhagavad Gita
Abstract
This paper analyzes the Spiritual-Based Leadership Research Programme (SLRP) which investigates the nature, activities, and results of leading from a spiritual perspective. The outcome of the program was the book Leading with Wisdom (Pruzan and Mikkelsen, Leading with wisdom: Spiritual-based leadership in business. New Delhi, Response Books, 2007) in which the profiles of 31 spiritual-based executives from 15 countries, representing six continents, were detailed. These profiles were classified into universal values such as love, compassion, divinity, and the like.
This paper analyses the profiles of the 31 spiritual-based leaders of the SLRP through the lens of the 18 leadership sutras. It explores to what extent the lives of these leaders from diverse global cultures embody the principles and teachings of the Bhagavad Gita. The aim is to empirically verify and establish the cross-cultural relevance of the age-old wisdom contained in the Gita, resulting in a truly Indian model of leadership called Wisdom Leadership.
C. Suriyaprakash
9. Literature as a Mirror for Leadership
Abstract
Contemporary philosophers and pedagogues such as Martha Nussbaum, Richard Rorty and Jill Kerr Conway believe in narrative ethics. They consider that the spiritual self can be approached through literature. While philosophy argues and teaches, literature demonstrates. Narratives hold up a mirror and confront the reader with an ‘otherness’ that questions otherwise self-evident norms and values. This paper focuses on examining three literary models that could help entrepreneurs and leaders to reflect on their positions and to make choices that are more conscious.
The fable has its roots in popular tradition. Fables from different cultures often have similar messages, and they are by nature didactic. The story, often told through an animal protagonist, demonstrates a proof, while a saying recapitulates a message in a nutshell. The fable promotes practical wisdom by associating concrete activities with general rules. A novel, however, is far more complex. Novels can provide a broad panoramic view of society, politics and economics, and enhance our awareness of life’s opportunities. By reading novels, a reader develops the capacity to see the world through another person’s eyes. An autobiography is situated at the border of fiction. Reading about other people’s lives holds a specific attraction; it involves a process of continuous reflection about our own existence.
Rita Ghesquière

Ethical Leadership in Practice

Frontmatter
10. Mindfulness and Non-Violence in Business
Abstract
Mindfulness and non-harming are traditional Indian virtues. In modern times, more emphasis has been placed on mindfulness than non-harming. Mindfulness has become an important practice of many successful entrepreneurs, CEOs and other leaders. Mindful leadership is based on mindfulness, which is defined as intentionally paying attention to the present moment in a non-judgmental way. Mindfulness can be a key competence of leaders through which they can gain courage, enthusiasm and awareness. Leaders, now more than ever, cultivate mindfulness for the purpose of bringing their mind’s capabilities to bear on the practice of leadership.
The most influential leader to integrate the principle of non-harming into daily practice was Mahatma Gandhi, who practiced non-harming as a fundamental governing principle for activity. Today non-harming is more important than even before, especially now that humanity has the power and technology to influence and change the vital functioning of the planet. The authors describe business models whose goal is to practically implement the principle of non-harming: Community Supported Agriculture, Ethical Banking and The Slow Food Movement. They also present cases of entrepreneurial initiatives that are based on the goals of non-harming: Windhorse Evolution, the Apopo Foundation, Interface and the Social Venture Network. Non-harming seems to be indispensable for the creation of a sustainable world. The balance between mindfulness and non-harming should be re-established.
Gabor Kovacs, Andras Ocsai
11. Spiritual-Based Entrepreneurship: Hindu and Christian Examples
Abstract
Spiritual traditions put human existence into a broader context, and support the integration of moral values and behaviors into daily life that can create a happier and more meaningful existence. This paper contains two insightful cases. One involves a Hindu social entrepreneur, while the other concerns a Christian social entrepreneur. The basic principles of Hinduism and Christianity are described in the search for purpose, meaning and correlations between the cases. By tapping into the timeless wisdom of our human heritage we can connect with others in meaningful ways, overcome cultural, political and religious barriers, and find new ways of working together.
Katalin Illes
12. Going Beyond Profit: A Case Study of the CSR Initiative of Titan, Tata Group
Abstract
The Tata Group and its precision engineering division, Titan, run on a foundation of values based on the spiritual principle of proactively giving back to society. In this paper, the authors study Titan, making reference to the strategy, business ventures and social responsibility that are ingrained in the company. The authors analyze the branding strategy, product categories and corporate social responsibility (CSR) initiatives of Tanishq, the jewelry division of Titan, through a focus on Mr Perfect and Karigar Park, two of Tanishq’s innovative CSR initiatives.
Tanishq seeks to support social welfare activities without exception as it strives to follow the Tata tradition of going beyond the financial bottom line. Company leaders appear to have realized that having a profitable company which is neither ethical nor sustainable is not supportable by society at large. ‘Exemplifiers’ and ‘self-promoters’ both want to be admired, but the former are more concerned with projecting integrity than projecting their success. Stakeholder commitment (i.e., ensuring the business is held in high esteem) and trust (i.e., expecting the organization to act with integrity) are typically considered to be two important components of corporate reputation. The authors conclude that Tanishq is a self-exemplifier, trusted for its commitment to stakeholders’ wellbeing and the common good.
Madhumita Chatterji, Nitha Palakshappa
13. Spirituality and Effectiveness in Today’s Workplace
Abstract
The modern digital workplaces are strongly goal-oriented and are therefore dehumanizing. Stress, combined with poor interpersonal relationships, creates psychological distress for employees, which leads to the formation of a negative atmosphere in the workplace and a reduction in productivity. This negativity also often gets carried home by the individual as a form of spillover. The consequences for the body and the mind may be severe.
This paper analyses how one overcomes the deleterious effects of stress through using spiritual edicts. The topic is investigated through a study of the Vedas, the Upanishads and the Bhagavad Gita, as well as through the thoughts of India’s greatest minds such as Swami Vivekananda, Sri Aurobindo and Sri Rabindranath Tagore, along with Western management thinkers such as Peter Senge, Peter Drucker and others. The paper interprets and adopts the spiritual messages of these thought leaders and describes their practical application to the modern knowledge worker.
A. Lakshminarasimha
14. Spirituality at the Bottom of the Pyramid
Abstract
Modern employees seek a sense of purpose in their work and wish to align their personal values, belief system and ethics with the organizational values, culture and business ethos of their workplaces. While much has been said about the sense of purpose and the contribution to community of mainstream business sector workplaces, not much thought has been given to the situation at the bottom of the pyramid.
This paper presents and analyses the case of Mumbai Dabbawala. This business is run by the masses for the masses. Uneducated people, whose opportunities in life are limited, are given a purpose and a vocation that offers them self-respect and pride. By offering healthy, home-cooked type lunches at affordable prices, the business service is invaluable to workers who cannot afford to eat out. The entire operation is carried out sustainably, with minimal consumption of natural resources. The dabbawalas are imbued with a sense of autonomy and accountability. The most vital link in this food delivery chain is spiritual human capital.
Arun Raste
15. Eco-Spirituality and Regenerative Entrepreneurship
Abstract
This paper investigates whether eco-spirituality has the potential to become a core competence for successful business management. The authors open with a critical discussion of sustainable entrepreneurship and continue by describing the role of regenerative eco-innovation. The paper then compares different spiritual and economic perspectives about doing business. The conclusion is that the innovations of regenerative businesses help restore eco-system health, and go beyond typical business activities for value creation.
Nel Hofstra
16. Time for Business Schools to Teach Spirituality
Abstract
The topic is the introduction of the concept of spirituality as an overarching and comprehensive approach to the management of businesses and people, using theory that is rooted in the ancient Indian literature of the Upanishads and the Bhagavad Gita. The paper discusses the approach of a well-known Indian business school which set out on a different path by successfully offering a course which frames business skills in the context of wider goals for businesses and for business leaders as individuals. Vedanta’s approach to education is a powerful tool for creating leaders of tomorrow who are instructed not merely to generate rewards for themselves or their corporations, but also to build enriching and rewarding lives and careers that impact society for the better.
Manesh L. Shrikant, Jagdish R. Rattanani
17. Alternative Learning: A Voyage for Future Leadership
Abstract
Alternative sources and methods of learning should be used in future leadership. In doing so, insight from traditional Indian wisdom literature (the Upanishads, Srimad, the Bhagavad Gita) and messages from great modern Indian leaders, such as Tagore and Swami Vivekananda can be adopted.
The central question is whether we are really willing to challenge ourselves. If so, then how? What can business leaders of tomorrow learn from the death and destruction of old models that they can use to create breakthroughs in leadership roles? When will the passion to transform and to infuse new life into our organizations and the planet at large be great enough to shake the very foundations of our outdated models and lead to the overthrow of worn-out concepts, tunnel vision and fossilized values? For this to happen, we must maintain both the courage and the desire to change.
Sanjoy Mukherjee

Conclusions

Frontmatter
18. Lessons for the Future for India and Europe
Abstract
There are unavoidable differences and also complementarity in the European, Judeo-Christian and the Indian Hindu-Buddhist approaches to ethics and leadership. In the Western approaches, individuals can and should evaluate their own behavior and that of others with respect to understanding the possible positive or negative effects it may have on other sentient beings and on nature. The Eastern approaches provide a greater focus on what it means to be human than on either the motivations for our actions or the consequences. There is an emphasis on our inherent capacity for self-reflective choice and our propensity as human beings to behave ethically and not on rational reflection or on tradition-based norms.
Spirituality is not incompatible with rationality or real-world economic, social and environmental analysis. Ethical leaders can employ the best available scientific knowledge to execute their own spiritual-based plans and policies. India and Europe should embrace their own noble traditions and seek to cross-fertilize one another to foster a state of sustainability, peace and well-being. The key is to overcome the pre-existing dominantly materialistic value orientation of our societies and the ego-centeredness of individuals and thereby come closer to a state of transcendence and oneness.
László Zsolnai, Madhumita Chatterji
Backmatter
Metadata
Title
Ethical Leadership
Editors
Madhumita Chatterji
László Zsolnai
Copyright Year
2016
Electronic ISBN
978-1-137-60194-0
Print ISBN
978-1-137-60193-3
DOI
https://doi.org/10.1057/978-1-137-60194-0