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Management, Change, Strategy and Positive Leadership
Series Editors: Satinder Dhiman · Joan Marques

Subba Rao Pulapa

Business Ethics
and The
Bhagavad Gita
Cost of Unethical Acts:
Directions of the Dharmātman for
Ethical Leadership
Management, Change, Strategy and Positive
Leadership

Series Editors
Satinder Dhiman
School of Business
Woodbury University
Burbank, CA, USA
Joan Marques
School of Business
Woodbury University
Burbank, CA, USA
More information about this series at http://www.springer.com/series/15772
Subba Rao Pulapa

Business Ethics
and The Bhagavad Gita
Cost of Unethical Acts: Directions
of the Dharmātman for Ethical Leadership
Subba Rao Pulapa
Millennium University
Blantyre, Malawi

ISSN 2662-3080     ISSN 2662-3099 (electronic)

Management, Change, Strategy and Positive Leadership
ISBN 978-3-030-45629-0    ISBN 978-3-030-45630-6 (eBook)
https://doi.org/10.1007/978-3-030-45630-6

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Switzerland AG 2020
This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of
the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,
broadcasting, reproduction on microfilms or in any other physical way, and transmission or information
storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the
editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.

This Springer imprint is published by the registered company Springer Nature Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 Dedicated to
Dharmatman Lord Sri Krishna
Preface

Globalisation, coupled with strides in information technology, has provided

boundary-­less and innovative business and service opportunities which instil ambi-
tion in some and greed in others. Ambition and greed inspire people to become
entrepreneurs, establish/expand business and contribute to wealth creation.
Ambitious people are concerned and share the gains with other stakeholders whilst
greedy accumulate and maximise everything for themselves and for their next gen-
erations, sometimes by resorting to unethical acts. In fact, there is no guarantee that
wealth accumulated by greedy people can be enjoyed by their descendants.
Dharmatman Lord Sri Krishna directs us to enable the continuous and free flow
of the wheel of creation (Verse-16 of Chapter-3 of Srimad Bhagavad Gita) by dis-
tributing proceeds of business to all stakeholders duly. Capitalism may encourage
the greedy trait of accumulation and maximisation of wealth/power for self among
some people. Ethics/dharma play a pivotal role in eradicating greed in order to
enable the continuous and free flow of the wheel of creation in all walks of life and
especially in business and service organisations in capitalistic economies. Of late,
the business firms’ goal of profit/wealth maximisation is relegated by sustainable
development which might be based on ethical conduct.
Conduct of business and service transactions ethically contributes to the continu-
ous and free flow of the wheel of creation, which is established, maintained and
regulated by the Dharmatman Lord Sri Krishna. This, in turn, enables for enjoy-
ment of the value created by the business by all stakeholders duly and also for sus-
tainable development of organisations. In addition, leaders are treated as role models
and hence they have to perform the assigned duties by the mission of their respec-
tive organisations ethically that includes perfectly as the Lord indicated.
Directions of the dharmatman help us to achieve the organisational vision and
mission from the comprehensive perspective of business existence and growth in its
totality and enjoyment of their due shares in the value created and added by all
stakeholders. Leaders of various sectors have pivotal roles to play in building ethical
organisations and thereby ethical economies and societies. Ethical leaders can pre-
pare ethical followers and vice versa. This would enable the people to play their

vii
viii Preface

assigned duties perfectly and thereby strive for their self-actualisation rather than
limiting themselves at the lower stages of achievement/realisation of their potenti-
alities. This process would enable for ‘greater good’ and leads to happy, peaceful
and delightful economies and societies that pave the direction for ethical econom-
ics. Towards this end, by the grace of the Lord Sri Krishna a dismal attempt is made
to interrelate the directions of the Dharmatman.
This book is written in conversation style using a hypothetical executive devel-
opment programme in order to instil interest and continuous readability among
readers.
Readers are requested to send their feedback, comments and suggestions to the
author via email.

Blantyre, Malawi  Subba Rao Pulapa

27th February 2020
Acknowledgements

Dharmatman Lord Sri Krishna bestowed his grace upon me and used me as an
instrument in writing this unique book. The Lord inspired and guided me in using
the term Dharmatman. My humble obeisance to the Supreme Lord Sri Krishna for
this opportunity and my pranams to God Ganesha and Goddess Sharada Devi.
Many individuals, organisations in addition to the divine force helped me in writ-
ing this book. Sri B. Narayana Murty, former General Manager, Andhra Bank has
gone through the entire manuscript and offered more valuable feedback, comments
and suggestions. He encouraged and inspired me in the process of writing this book.
I am grateful to him.
Sri Baldev Prabhu of International Society for Krishna Consciousness (ISKCON)
has gone through one chapter and the summary of the book and provided feedback
and offered comments. In addition, Sri Baldev Prabhu conferred the writing style of
the book and inspired me in the process. My sincere thanks to Sri Baldev Prabhu.
Sri Radha Kanth Prabhu of International Society for Krishna Consciousness
(ISKCON) has gone through one chapter and provided feedback and also confirmed
the meaning of dharmatman. I am grateful to Sri Radha Kanth Prabhu.
I thank Prof. D. Harinarayana, Dean (Academic and Examinations), Rajiv
Gandhi University of Knowledge Technologies, Andhra Pradesh for his comments
and feedback with regard to one chapter.
Dr. P. Raghavaiah, Librarian, VNR Vignana Jyothi College of Engineering and
Technology, Hyderabad helped me in various ways in the process of writing this
book. I thank him immensely.
Gita Press Gorakhpur granted permission to quote meanings of Verses from
Srimad Bhagavadgita, Published by Gita Press Gorakhpur India, 2019. I express my
gratitude to them.
I thank Dr. Friday Jumbe, Mr. Gase Motshewa and Mrs. Brenda Motshewa of
Millennium University, Blantyre, Republic of Malawi and Prof. Albert Mellam, for-
mer Vice-Chancellor of the University of Papua New Guinea for their encouragement.
I thank Sri Venugopal Rao Badhrinath and Smt. Shanthi Badhrinath for enabling
me to spare time for correction of proofs in time.

ix
x Acknowledgements

I am especially grateful to the entire editorial team of Springer Nature for bringing
this book in a nice form.
I don’t have words to express thanks to my better-half Mrs. Rama Devi who sup-
ported and encouraged me throughout writing this book. My daughter-Hima Bindu,
and my son Venkata Ram Tej Kumar have gone through some parts of draft of the
book and provided their comments and suggestions. I thank both of them. I am
grateful to my son-in-law Ramesh Naidu Chandra for his contribution. I thank my
dughter-in-law Prathyusha Pulapa for her sacrifice. My special thanks are due to my
little friends baby Harini Pulapa, baby Ishani Pulapa, Master Rohan Chandra and
Mr. Nitin Chandra, for their sacrifices while this book was in the process.

Blantyre, Malawi  Subba Rao Pulapa

28th February 2020
Non-English Words and Their Meanings
and Names from the Mahabharat Used
in This Book

Acharya Drona: Acharya Drona was royal preceptor of the Kauravas and Pandavas
in the Mahabharat, the most revered epic of the Hindu religion.
Arjuna: Arjuna was the third son of King Pandu, King of Kuru Dynasty, in the
Mahabharat.
Atman: Atman in Sanskrit means soul.
Bhagavad Gita: Song of God. Lord Sri Krishna revealed the Bhagavad Gita to
Arjuna (one of the Pandavas), wherein the Lord declared (Chapter-4, Verse-8)
that ‘For the protection of the virtuous, for the extirpation of evil-doers, and for
establishing Dharma (righteousness) on a firm footing, I manifest Myself from
age to age’. It is a sacred text of the Hindu religion. In fact, some view that mes-
sage of Bhagavad Gita is relevant for all religions.
Bhagawan: in this book means the Supreme Lord Sri Krishna who is also referred
to as Dharmatman. There are several names to the Lord including Achyuta,
Keshava, Rama and Narayana.
Bhishma: He was the eighth son of Kuru King Shantanu and the grandfather of
Pandavas and Kauravas in the Mahabharat.
Dharma: Dharma in Hinduism denotes ethics and yet provides a broader meaning
compared to ethics involving brain, mind and soul.
Dharmatman: Dharmatman is the Lord Sri Krishna who establishes, protects,
restores and re-establishes dharma millennium after millennium. The Supreme
Lord is all pervasive and ultimate in establishing, practicing and protecting
dharma, interpreting dharma and directing human beings in following dharma or
ethics. The Supreme Soul Sri Krishna is an incarnation of the Supreme Lord
Vishnu. Sri Krishna is also regarded as the Supreme God in the Hindu religion.
Dharmic Approach: Dharmic approach to ethics deals with performing duties
assigned to oneself in a right way and path of righteousness without being
attached to results.
King Janaka: King Janaka is an ancient Indian King of Videha. King Janaka was
father of Goddess of Sita and father-in-law of Lord Sri Rama in Ramayana – one
of the most revered epic of the Hindu religion.

xi
xii Non-English Words and Their Meanings and Names from the Mahabharat Used in This Book

King Yudhistira: King Yudhistira was the eldest son of King Pandu, King of Kuru
Dynasty, in the Mahabharat.
King Karna: King Karna was the King of Anga Kingdom in the Mahabharat.
King Dhuryodhana: King Dhuryodhana was the eldest of the Kauravas in the
Mahabharat.
King Shalya: King Shalya was the King of Madra Kingdom and the uncle of the
Pandavas in the Mahabharat.
Pandavas: Pandavas were five sons of King Pandu, King of Kuru Dynasty, in the
Mahabharat.
Rajas: means passion
Universal Brahman: It is believed that soul/atman is a part of Universal brahman
that underlies working of the universe. The supreme Lord is regarded as the
Universal Brahman.
Contents

1 Business Ethics: An Introduction ����������������������������������������������������������    1

2 Greed and Family Attachment����������������������������������������������������������������   15
3 Trustees or Tricksters������������������������������������������������������������������������������   47
4 Mission vs. Actions ����������������������������������������������������������������������������������   77
5 Dualism in Human Capital Formation�������������������������������������������������� 113
6 Human Consideration vs. Business Orientation ���������������������������������� 153
7 Ethical Dichotomy������������������������������������������������������������������������������������ 183
8 Humanitarianism vs. Market Power������������������������������������������������������ 207
9 Need of the Hour: Ethical Leadership �������������������������������������������������� 227

Index������������������������������������������������������������������������������������������������������������������ 245

xiii
Chapter 1
Business Ethics: An Introduction

Professor: Dear participants Mr. Suresh, Mr. Ram, Mr. Gopal, Mr. Narayana, Mr.
Mukund, Mrs. Kiranmayi, Mrs. Sukanya Devi, Mr. Naresh, Ms. Ishani, Mr. Nitin,
Mr. Rohan, Mr. Hari Shankar and Mr. Balu, good morning to you all.
I welcome you all to this trendsetting executive development programme on
‘Business Ethics and the Bhagavad Gita’.
Participants: Professor, good morning and thank you.

Professor: Participants, initially I will explain the concepts of ethics, dharma and
business ethics in addition to the need for business ethics in this session. I would
like to ask a question.

Mr. Mukund: Professor, what is the question?

Professor: Mr. Mukund, what is the basic objective of a business firm?

Mr. Mukund: Professor, it is well-known and we also read in many business man-
agement and economics books. It is ‘profit maximisation’ or ‘maximisation of
shareholders’ wealth’. In fact, we also practice it.

Professor: Good. I would like to know from you. First, I will explain the need for
business ethics.

Need for Business Ethics Milton Friedman argued that ‘business’s business is just
business’. He stated that business managers’ responsibility normally is to maximise
business’ earnings by following the norms of society [1]. He also felt that individu-
Note: Meanings of verses of Bhagavad Gita are taken from Srimad Bhagavadgita, published by
Gita Press Gorakhpur India, 2019, with permission from the publisher.

© The Editor(s) (if applicable) and The Author(s), under exclusive license to 1
Springer Nature Switzerland AG 2020
S. R. Pulapa, Business Ethics and The Bhagavad Gita, Management, Change,
Strategy and Positive Leadership, https://doi.org/10.1007/978-3-030-45630-6_1
2 1 Business Ethics: An Introduction

als, but not corporates, can have responsibilities [2]. He further said that companies
have to concentrate on increasing profits for shareholders, and societies get benefit
from growing companies [3].
A similar opinion was expressed by Peter Drucker [4]. However, later he
expressed a different view that business should not damage the society. Friedman’s
argument was regarded as pragmatic in the past. Of late, different views were
expressed that businesses’ goals should be inclusive of social responsibilities and
good corporate governance [5].
The regulated economies necessitated their governments to regulate and control
business organisations and economic institutions through law and government
mechanisms to enable them to play their role in contributing to the growth and well-
being of various stakeholders in a balanced way such that the interest of almost all
of the stakeholders including customers and the society was duly protected.
Deregulation/liberalisation, privatisation and globalisation which were initiated
in most of the countries during the 1980s and 1990s brought paradigm shifts in vari-
ous spheres including the schools of management thought and business models and
structures. Consequently, various business management concepts, principles, theo-
ries, practices, goals and strategies have been under evaluation, revalidation and
constant change. As such, now it is believed that ‘only change is constant’.
Governments, which were hitherto discharging the responsibilities of safeguarding
the customers’ interests in respect of quality, price, safe and timely delivery of the
product, etc., protecting the companies from unhealthy competition and restricting
the concentration of economic power in the hands of a few which should otherwise
be enjoyed by the majority of the population and the like, relegated and shifted
those responsibilities onto the shoulders of the business organisations, often simply
by encouraging trade deregulation or liberalisation and privatisation.
Many social scientists felt that the deregulation would encourage the business to
reverse back to its orthodox objective of ‘profit maximisation’ by whatever means
including practising unethical conduct. But sooner or later, a number of incidents
and business scandals around the world proved that businesses should carry out
their operations ethically for the sake of their basic survival and sustainability. In
fact, it is viewed that the business objective of profit maximisation is relegated by
the objective of sustainable development.
The issue of ethics before liberalisation, privatisation and globalisation had nei-
ther been due to lack of information and knowledge nor due to the non-acceptance
of principles of ethical behaviour underlying such knowledge, but it was due to
governments’ role of regulating and controlling to a greater extent and avoiding
attitudes developed by business people towards law to some extent, consequent
upon the opportunity provided by the sellers’ market.
The issue, now, is to treat ethics as part of making individual and collective busi-
ness decisions and ultimately ensure corporate ethical behaviour. Corporate ethical
behaviour is an outcome of conglomeration of individual behaviour of business
managers and of the stakeholder organisations. Many business people are religious
individuals, but their business suits may make them blind towards human suffer-
What Is Ethics? 3

ings. They might have used to get away with unethical behaviour more often under
conditions of a seller’s market, i.e. where the seller holds the power in the market
place. In fact, when conditions change and the market environment became a buy-
er’s market, this, more often than not, causes business people to realise that behav-
ing ethically is not only in the interest of their personal life but also in business life,
especially over the longer-term perspective of achieving the strategy of sustainable
development.
The latest and significant event in this direction that was held on 19 August
2019 in New York was the ‘Business Roundtable’ that took a deviation from the
classical ideology. Participants at this meeting expressed that US companies should
render responsibilities towards various sections of community and serve s­ takeholders
ethically. It was also felt at this meeting that corporations should render responsi-
bilities to all sectors of the community, particularly to education and health sectors,
and more specifically treat the employees fairly. The meeting also felt that employ-
ers should pay at least living wages to lower-level employees [3].
In essence, it seems that the basic objective of business is set to shift from profit
maximisation to profit accompanied by human welfare.
We may speak a lot about ethics, but it is difficult to narrow it down in the form
of a definition as it encompasses several disciplines including theology. However,
we make an attempt to provide meaning of the term ‘ethics’.

What Is Ethics?

The word ethics refers to good character, morality, doing things in a right manner
and behaving in a good manner [6]. Ethics deals with morally good and bad or mor-
ally right and wrong and moral duty, responsibility and obligation in human behav-
iour. It also deals with what ought to be and what ought not to be.
Ethics is application of appropriate values and for creating and developing mor-
als and guiding towards moral behaviour and actions [7]. Commonly, ethics is also
referred to as good, right, just and honest. Dharma in Hinduism expresses similar
meaning of ethics.
Ethics denote perfectness, values, morally right and good, moral duty, moral
responsibility, possessing good character, righteous behaviour and what to be and
what not to be done.
Now, we deal with the meaning of dharma.
Dharma Dharma in Hinduism lays emphasis on behaviours that are in accordance
with truth and cosmic principle [8]. Dharma deals with good, right, duty, role, good
behaviour, values [9], right way of living [10], correct, moral and natural [11]. Thus,
the word dharma in Hinduism denotes ethics and yet provides a broader meaning
compared to ethics involving the brain, mind and soul. However, we may take ethics
and dharma as synonyms for our discussion.
4 1 Business Ethics: An Introduction

Dharma and ethics are judged based on situations where truth is permanent and
doesn’t change based on situations including cultures. It is felt that people follow
ethics or dharma differently as they perceive the situations differently and as such
attribute to the relationship between the situations and personalities differently.
Mr. Balu: Professor, though these variations of situations to some extent can be
attributed to the personalities including their faculties, it is felt that soul or atman
plays a dominant role in following ethics or dharma as it influences the faculties in
a righteous way.
Could you please explain the relationship between soul and ethics?
Professor: Balu, I clarify the relationship between soul and ethics.

Soul, Atman and Dharmatman

It is felt that soul or atman plays a vital role in following ethics or dharma by an
individual along with personality traits derived from hereditary and environmental
factors. Hence, I make an attempt to provide the meanings of soul and atman first.
‘Soul is spiritual part of a person that some people believe continues to exist in some
form after their body has died or the part of a person that is not physical and experi-
ences deep feelings and emotions’ [12].
Atman in Sanskrit language means soul [13]. Atman is the principle of life [14]
and transmigrates to different forms including liberation [15]. Atman like soul is a
spiritual aspect of a body of all creatures. Atman enables various organs of the living
being and faculties function as it is also viewed as the principle of life. It is believed
that atman is a part of Universal Brahman that underlies working of the uni-
verse [15].
Thus, it may be viewed that soul and atman are synonyms that they are not part
of physiology of the living being. Soul or atman is eternal and continues even after
the death of current body, yet is related to the living being and enables various
organs including faculties to function. Atman as indicated is ‘the principle of life of
an individual’ [14]. Universal Brahman/super soul is viewed as omnipresent. It is
the source of energy to and exists in all living creatures. It enables all others to be
active and grow [16].
Thus, atman is regarded as brahman after Enlightenment. Brahman influences all
living beings including humans in following dharma through sway atman, which
may be regarded as Dharmatman.
Lord Sri Krishna is regarded as absolute incarnation and HE is regarded as
Dharmatman as the Lord practices and preaches dharma through demonstration,
guides people in practising dharma, corrects the people in following dharma/path of
dharma and establishes and restores/reestablishes dharma millennium after millen-
nium. Lord Sri Krishna was addressed by Pandavas in the assembly of Sages as
Dharmatman [17]. (Pandavas are five sons of King Pandu King of Kuru Dynasty in
Soul, Atman and Dharmatman 5

the most applauded epic of Hindu religion of Mahabharata). As indicated earlier,

atman means the principle of life. Dharmatman means the principle of life of
dharma who is the Godhead Lord Sri Krishna.
Dharmatman – the Supreme Lord – is all pervasive and ultimate in establishing,
reestablishing, restoring, practising and protecting dharma, interpreting dharma and
directing human beings in following dharma or ethics. Lord Sri Krishna in Verse 8
of Chapter 4 of Bhagavad Gita says, ‘For the protection of the virtuous, for the
extirpation of evil-doers, and for establishing Dharma (righteousness) on a firm
footing, I manifest Myself from age to age’. [18] As indicated in this verse, The
Supreme Lord Sri Krishna, who is personification of dharma practised, directed the
people to follow dharma and also preached the principles of dharma to all the
humanity through Srimad Bhagavad Gita to Arjuna. In addition, the Lord estab-
lishes and restores dharma from time to time in addition to guiding, coaching, teach-
ing and preaching the people. It is also felt that one of the main purposes of Lord Sri
Krishna’s incarnation is restoration of dharma. The Lord also indicated that he takes
incarnations from time to time for establishment of dharma. Thus, the Lord is the
embodiment of dharma.
Rohan: Balu, thank you for asking that wonderful question, and I thank the profes-
sor immensely not only for explaining the influence of soul/atman in practising
ethics but also for explaining how the Lord Sri Krishna’s incarnation is related to
dharma and Pandavas addressing Lord Sri Krishna as Dharmatman. Now, I would
like to know the criteria of ethics or dharma.

Professor: Rohan, I understand your eagerness. Let me explain.

Criteria of Ethics Criteria of ethics include the following:

(i) Criteria of optimism that prescribes optimum mix of values taking into consid-
eration real-life situations.
(ii) Criteria of truth that prescribes speaking and presenting the truth. Speaking the
truth, in its turn, emphasises transparency and honesty in carrying out transac-
tions including business transactions.
(iii) Criteria of charity and compassion.
(iv) Criteria of trust and cooperation.
The values of trust and cooperation should be deep rooted and spread in all direc-
tions of the business in order to run the business prudently and with care. Adaptation
of these values enhances business efficiency and trust of the customers, executives
and all other stakeholders of a business organisation.
Approaches to Ethics Various approaches to ethics include dharmic approach,
deontological approach and utilitarian approach.

Dharmic Approach Dharmic approach to ethics deals with performing duties

assigned to oneself in a right way and path of rightness without being attached to
6 1 Business Ethics: An Introduction

results. Duties are prescribed for carrying out the work with positive intentions of
the wellbeing of the society and all living beings at large in a right and moral way.
This approach doesn’t deal with the outcome of the action. The Dharmatman Lord
Sri Krishna in Verse 47 of Chapter 2 in Bhagavad Gita said that ‘Your right is to
work only and never to the fruit thereof. Do not be the cause of the fruit of action;
nor let your attachment be to inaction’ [19]. It does indicate that, if we anticipate the
fruit/result, we may tend to manipulate the process of and/or interventions of the
work towards the desired or nticipated fruit/result through even unethical means.
The embodiment of Dharma directs us to perform our prescribed duty without
anticipating the results in order to prevent us from involving in unethical acts. Lord
also stated that you are not the cause of results.
Dharmic approach, thus states that one should act ethically and perform pre-
scribed duty without considering the result of the action. It enables people to think
of perfectness in carrying out the prescribed duties. If we think of outcomes either
before acting or in the process of action, we may tend to manipulate the activities as
well as interventions in order to achieve the planned outcome rather than perform-
ing the activity perfectly. Performing prescribed duties without thinking of outcome
enables the people to perform the activities perfectly that includes morality.
Therefore, dharmic approach enables people to perform activities with perfectness
including ethically and positive intention that result in ethical acts. Performing un-
prescribed duties may amount to doing actions with wrong intentions and results in
unethical acts. Thus, an action may be regarded as ethical if its intention is right.
Deontological Approach According to deontological approach, ethics is based on
intentions of the person who makes decision but not the actions or their conse-
quences, as actions are uncertain. It can be viewed that deontological approach is of
the same view of dharmic approach. Immanuel Kant also emphasises on performing
correct acts and proper means [20].

Rights Approach Under this approach, individuals must personally use ethical
behaviour in order to achieve the goal.

Justice/Fairness Approach Justice/fairness approach aims at treating all people

fairly and equitably.

The Common Good Approach The common good approach aims at following the
common social norms uniformly.

The Virtue Approach This approach is based on normative principles. Normative

principles emphasise on ethical action and are concerned with the criteria of what is
morally right and wrong [21].

Utilitarian Approach Utilitarianism – a theological theory. It states that if an

action produces positive consequences, it is regarded as ethical and vice versa. This
approach states that ‘act in accordance with rules fashioned on utility.’ Businesses
Business Dharma 7

can use this approach in making and implementing its decisions in such a way that
they should benefit a larger number of people in each of the segments of
stakeholders.

Professor: All of you should note that ethics is situational, in the sense that what
is ethical in one situation need not be ethical in another situation.
Now, let me explain what business ethics is.

What Is Business Ethics?

We can’t say that ethics and business ethics are the same. We have to judge what is
right and what is wrong in each of the business activities/situations. Business ethics
may be viewed as interpretation of norms, ethical principles and ethical standards to
all areas of business decisions, activities and practices. It moulds the corporate
behaviour towards ethical behaviour to benefit all stakeholders in a balanced man-
ner due to them. Thus, business ethics may be viewed as application of norms,
moral values and standards to all operations of business [22]. Business ethics is a
‘set of corporate values and codes of principles, which may be written or unwritten,
by which a company evaluates its actions and business-related decisions’ [23].
Business ethics of an organisation emerge from ethics of employees, executives,
customers, regulators and all other stakeholders, organisational codes and codes of
professional organisations and from the legal system and its enforcing agencies.
These moral and ethical standards guide the business organisations in practising
ethics as well as during ethical dilemmas [24].

Business Dharma

‘Business dharma’ may be viewed as application of principles of dharma in busi-

ness decisions, practices and activities, in other words, doing business in a correct
or morally upright manner and performing rightful and prescribed business activi-
ties as per the vision and mission of the organisation and practising behaviour con-
sidered appropriate as per dharma.
Thus, business ethics/dharma is viewed as application of ethical values and
norms to the business activities and performing the duties as prescribed by the
authority of an organisation like mission and codes.
8 1 Business Ethics: An Introduction

Scope of Business Ethics

Business organisations have to perform a variety of activities starting from sourcing

of all inputs, production, marketing and human resources, following the laws of the
country where it is located and/or operated, contributing to the goals of the society
and the like. Thus, business interacts with various sections of the economy and the
society. Business performs a number of activities focusing on a variety of stakehold-
ers who have conflicting goals and interests. The need for business ethics arises
while meeting the conflicting needs of various stakeholders in a balanced approach.
Business houses produce goods/render services of large quantities contributing
to the gross domestic product of the countries where ever they operate. The gross
domestic product is not an end by itself. It is a means to an end, in the sense that it
contributes to the satisfaction of human needs. Business allocates scarce resources
among various production means with conflicting goals based on priorities. The
need for business ethics does arise while allocating the scarce resources among the
conflicting goals.
Therefore, business has to perform the activities more ethically to become caus-
ative to the welfare and wellbeing of all living beings at large which in turn contrib-
utes to the sustainable business development.

Business Ethics and Business Sustainability

Business ethics, undoubtedly contribute to the sustainable growth of the business as

various stakeholders like suppliers, market intermediaries, customers, employees
and Government, would develop trust and long-run relationship with businesses,
taking and implementing ethical decisions and operating ethically its activities con-
cerning each of these stakeholders. In fact, customers continuously give business
when ethical principles are followed in the activities concerning them like quality,
price and delivery. Similarly, it is true with other stakeholders also. Therefore, we
can say that sustainability follows ethical practices.
Mr. Naresh: Professor, I appreciate your idea/theory that ‘sustainability follows
ethical practices’. Could you please explain the principles of dharma?

Professor: Thank you. Now, I will explain the virtues and principles of dharma, in
addition to principles of ethics.
Virtues of Dharma 9

Virtues of Dharma

Virtues of dharma in Hinduism include moral duties including speaking the truth,
free from greediness, jealousy, anger, arrogance, lust, envy and pride. It also includes
doing right things and rightfully assigned duties, conducting morally accepted
activities, performing functions as per social order and serving various sections of
the society particularly education, health, disadvantaged people and the like [25].
Virtues of dharma in Hinduism as integrated in atman theory by Dharmasutras
and Dharmasastras are truth, sincerity, contentment, peaceful, gratification and
compassion. It is also viewed that the one who follows these virtues of dharma
becomes united with the Universal Self, i.e. Universal Brahman [26].
Principles of Dharma Vatsyayana during the fourth century stated the principles
of dharma as charity and sacrifice, speaking the truth, compassion, being kind,
behaving gently with others, talking and acting with right intention, serving others
and the like [27].

Hari Shankar: Professor, we now learned the principles of dharma and ethics.
Could you please explain the standards of ethics?

Professor: Yes, Hari. I am going to explain the same.

Standards of Business Ethics

The basic standards of business ethics include the following:

• Follow human values in all areas and decisions of business.
• Business must not only be efficient in finance and dynamic in marketing but also
in human aspects.
• The major purpose of all business activities is to meet consumer needs and to
contribute in the long run to the wellbeing of the consumers and the
community.
• Business should produce products that will not harm the consumer’s health.
• Business should be based on the theory of trusteeship. Executives should act as
trustees of all stakeholders of the business. Business should give top priority to
service and only the next priority to profits.
• Business must be conducted legally and morally for the benefit of the people
whom it serves.
• Business should not become the cause of water, air, sound and other kinds of
pollution.
• Business should not exploit all kinds of political, social and cultural business
environment for its advantage.
10 1 Business Ethics: An Introduction

• Business should reconcile and harmonise the separate and conflicting responsi-
bilities towards customers, employees, shareholders, government, suppliers,
bankers, community and the like.
• Business should not contribute to the concentration of economic power in a few
people and set monopolistic trends as such trends harm competitors, customers
and other stakeholders.
• Business executives should perform the activities as authorised by the mission
and objectives of the company.
• Business executives should provide accurate information to all stakeholders.
They should not inflate facts as well as window dress.
• Education is to build the overall personality including character. Business firms
in education should not be run on just business principles. They need to be run
based on ‘business with humane’ principle. It does mean that businesses in the
education sector should emphasise on humane more than the business principles.
Hence, businesses in the education sector should not aim at short-run profits as
well as high-level profits at any point of time. They should concentrate on cre-
ation and development of human capital/human resources for the long-run per-
spective of the country as well as for the wellbeing of the universe. Managements
and employees of the education sector are expected to perform sacred activities.
• Medical and health sectors are to protect the human capital as well as basic life
of living beings. Hence, business in these sectors is highly sensitive, and hence
they should conduct business with more emphasis on compassion rather than
profits. Thus, people in this sector should feel that they perform sacred
activities.
• Providing service on voluntary basis should be treated purely as service.
Therefore, NGOs and other service organisations and their staff should never
treat their operations as business. In fact, their activities are sacred.
• Retail business should be viewed as retail, and hence, this sector should be
viewed as employment generation and people engagement business rather than
as a massive business to mint money by a few investors by creating monopolistic
trend. Hence, business in this sector should balance employment generation,
people engagement, service to customers, profits and the like.

Ethical Issues in Global Business

As mentioned earlier, principles of ethics and dharma are not universal. They are
more situational and depend on a number of factors. Ethical standards and
approaches vary from country to country due to variations in social and cultural fac-
tors, legal factors, economic and political factors and the like. As such, global busi-
nesses should understand that these factors in those countries they operate influence
the pattern of ethical practices in different countries.
Virtues of Dharma 11

• Search for universal values that are more or less applicable to all countries and
form the basis for their commercial behaviour.
• Understand the major religion in the host country as well as ethics that are
derived from the religion.
• Understand the varying global standards with regard to quality-price matrix and
fix price and quality ethically.
• Don’t employ child labour, and don’t follow the practices of exploitative tactics
like low salary levels and poor working conditions and benefits to staff.
• Consider host country’s traditions and outlook with regard to outsourcing, licenc-
ing, franchising, contract manufacturing, etc. Global business should ensure that
unethical practices should not be followed even in their franchising/outsourced
organisations.
• Don’t involve in corruptive practices in any country of operation.
• Don’t exploit natural resources of the host country based on commercial princi-
ples as well as short-run approach, as natural resources need to be used by gen-
erations to come.
• Utilise host country’s resources for the production of goods for the consumption
in the host country only. If the goods produced in the host country by exploiting
natural resources are exported, the benefit of foreign exchange resources should
be provided to the host country.
• Ensure that the water, food and other resources meant for the use of the commu-
nities in the host countries should not be used as raw material in production and
services of the business for the purpose of exports.
• Don’t use the ingredients in the production which harm the health of the custom-
ers of the host country.
• Follow religious norms of the host country strictly in case of producing and/or
selling food products.
• Produce and supply high qualitative products particularly in case of food and
pharmaceutical.
• Maintain safety norms strictly in case of oil and chemical industries in all areas
of production concerning employees, customers, suppliers, market intermediar-
ies and the community at large.
• Enter the foreign countries mostly through joint venture and collaborations with
the business firms of the host countries and share the benefits with the organisa-
tions of the host country.
• Transfer technology and product innovations to the developing countries.
• Develop the managers and human resources of host countries and particularly of
the developing host countries.
• Discharge the responsibilities to various social segments of the host country.
These responsibilities include development of medical facilities and construction
of hospitals, educational institutes, public utilities, drinking water, roads, etc.
• Donate medicines, books, computers and the like to the people, hospitals and
educational institutes of the host countries.
12 1 Business Ethics: An Introduction

• Market qualitative and economically appropriate goods to the customers particu-

larly in developing host countries. Avoid marketing of outdated and spoiled
products.
• Avoid marketing of those products which harm the health of the citizens of the
host country.
• Avoid marketing of those products/services which do not have the compatibility
with the culture (including religious aspects) of the host country.
• Don’t lobby with other business firms in fixing price, quality, supplier and mar-
ket intermediaries.
• Employ the local people to the extent possible and give them the opportunity to
earn income and develop employable skills.
• Treat the foreign employees and local employees equally in offering salary,
career advancement and providing the quality of working life.
• Don’t involve in political affairs of the host country.
• Help the host government during the periods of natural calamities like floods,
droughts, earthquakes, cyclones, etc.
• Don’t bribe or corrupt the government officials of the host country.
• Pay taxes to the governments of host countries accurately.
• Maintain the accounts ethically as per the accounting standards.
• Maintain sound business relations with the market intermediaries, suppliers of
raw materials, bankers and other financial institutions.
• Don’t lobby with and corrupt auditors and regulators in all the countries wher-
ever operations are carried out.
• Don’t indulge in insider trading particularly in relation to selling of shares allot-
ted to executives under stock-option schemes, etc.
• Don’t use business resources for unauthorised purposes.
• Use the stakeholders’ information exclusively for the purposes for which it is
ethically meant.

Conclusion

It is viewed that comprehensive personality is a basic requirement for practising

business activities ethically as ethics is the higher order of all activities involving
comprehensive personality of all concerned. Therefore, human resource formation
and development from childhood in the path of ethics is essential. Scriptures and
ancient heritage of various religions and societies emphasise these aspects. In addi-
tion, the education system should also contribute to impart and in-build value sys-
tem in the personality of human beings in the process of human capital formation
that makes the ethics and value system as a part of all activities of life including
human capital development. Education can also contribute to positive behaviour by
building character as character and ethics go hand in hand. In fact, education should
impart wisdom.
References 13

In fact, we should understand from the trends of globalisation, competition and

innovations particularly owing to the Fourth Industrial Revolution strides that inclu-
sive of information technology strides and the concept of sustainability that basic
objective of a business firm now is ‘sustainable development’, not ‘profit
maximisation’.
At this juncture, we recollect the Lord’s preaching about dharma in Bhagavad
Gita that helps the entire humanity particularly for those who are involved in the
pursuit of economic and business activities like you.
In fact, you are all in the positions of leadership, power and authority. At this
juncture Lord Sri Krishna indicates in Verse 21 of Chapter 3 of Bhagavad Gita as
‘For whatever a great man does, that very thing other men also do; whatever stan-
dards he sets up, the generality of men follow the same’. Employees of your organ-
isations, their family members, small organisations and the rest of the society follow
whatever ethical principles you follow as they see you as role models. Therefore, it
is for you as executives and leaders to set trend for ethical business that prevents
devastation and to pave the way for harmonious, peaceful, growing and enlightened
society.
Professor: Participants, my plan is to deal with some business case studies initially
and deal with important service sectors concerning human cause like education,
medical and health, NGOs and retail sector later.
Against this background, now we proceed to study business ethics through busi-
ness case studies relating to various companies in the forthcoming sessions.

References

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2. Friedman M (1984) Milton Friedman responds – an interview with Friedman. Bus Soc
84(5):24
3. https://edition.cnn.com/2019/08/19/investing/business-roundtable-corporate-responsibility/
index.html
4. Drucker P (1981) What is business ethics? Public Interest 63(Spring):18–36
5. Pinnington AH, Lafferty G (2002) Human resource management in Australia. Oxford
University Press, Melbourne. ISBN 0-19-551477-7
6. https://www.merriam-webster.com/dictionary/ethic
7. Woodall D, Winstanley J (2001) The place of ethics in HRM. In: Storey J (ed) Human resource
management, A Critical Text, 2nd edn. Thomson Learning, London, p 37
8. “Dharma”, The Oxford dictionary of world religions. Koller JM (1972) Dharma: an expression
of universal order. Philos East West 22(2):136–142
9. “Dharma”, The Columbia encyclopedia, 6th ed (2013) Columbia University Press, Gale;
Rosen S (2006) Essential Hinduism. Praeger, Westport. Chapter 3
10. Rosen S (2006) Essential Hinduism. Praeger, Westport, pp 34–45
11. Wezler A (2004) Dharma in the Veda and the Dharmaśāstras. J Indian Philos 32(5–6):629–654
12. https://dictionary.cambridge.org/dictionary/english/soul
13. Atman, Oxford dictionaries, Oxford University Press (2012)
14 1 Business Ethics: An Introduction

14. https://www.dictionary.com/browse/atma
15. https://www.britannica.com/topic/atman
16. https://www.yogapedia.com/definition/5274/brahman
17. http://ancientvoice.wikidot.com/mbh:dharmatman
18. Bhagavad Gita, Gita Press. Gorakhpur, 2019, p 64
19. Idid., p 39
20. https://www.cleverism.com/ethical-leadership-guide-definition-qualities-pros-cons-examples/
21. https://www.uniassignment.com/essay-samples/business/definition-and-concept-of-business-
ethics-business-essay.php; https://www.britannica.com/topic/normative-ethics
22. https://www.yourdictionary.com/business-ethics
23. Gruble C (2011) Defining business ethics. http://businessethicsreview.wordpress.
com/2011/06/21/defining-business-ethics/
24. Ferrell OC (2017) Business ethics: ethical decision making and cases (Fraedrich J, Ferrell L
(eds)), 11th ed. Boston, Cengage Learning
25. “Dharma”, The Columbia encyclopedia, 6th ed (2013) Columbia University Press, Gale
26. Knowledge of the Atman, Apastamba Dharma Sūtra, ~ 400 BCE, Sanskrit Original:
Apastamba Dharma Sutra page 14; English Translation 1: Knowledge of the Atman Apastamba
Dharmasutra, The Sacred Laws of the Aryas, Georg Bühler (Translator), pp 75–79
27. Klostermaier K. A survey of Hinduism. SUNY Press. ISBN 0-88706-807-3
Chapter 2
Greed and Family Attachment

Professor: Dear participants of the Executive Development Programme, good day

to you all!

Participants: Professor, good day to you too!

Professor: Thank you. We had quite interesting discussions on various aspects of

business ethics and dharma in the previous session.
The best way of discussing ethics, based on my experience, is through case stud-
ies. We shall follow the same pedagogy in this programme also. Greed is the most
important cause for practising unethical behaviour. Today we shall discuss about
‘greed’.
Mr. Suresh: Professor, I feel that my business case is appropriate at this juncture.
Shall I explain about my organisation?

Professor: Mr. Suresh, you can proceed.

Suresh: Professor and my co-participants, my friends used to mention that I am

‘greedy’, but I used to think otherwise as ‘I create wealth’.
I still remember my childhood days when my elder brother used to take me to ice
cream parlours and other shops to buy several items for both of us using his pocket
money. I used to save and hide my pocket money. My elder brother used to buy
several items for both of us using his pocket money during our childhood whereas,
I used to save and hide my pocket money. I used to derive pleasure out of it.

Note: The meanings of the verses of Bhagavad Gita are taken from Srimad Bhagavadgita, pub-
lished by Gita Press Gorakhpur India, 2019, with permission from the publisher.

© The Editor(s) (if applicable) and The Author(s), under exclusive license to 15
Springer Nature Switzerland AG 2020
S. R. Pulapa, Business Ethics and The Bhagavad Gita, Management, Change,
Strategy and Positive Leadership, https://doi.org/10.1007/978-3-030-45630-6_2
16 2 Greed and Family Attachment

I reached a stage of funding my father when he had the heavy commitment of

funding my brother’s education. This made me proud and, of course, rich as my
father had to pay double the amount borrowed. My father used to scold my brother
and mother by quoting me as an example for how to save. Of course I saved out of
my pocket money and also added interest. My father during the 1970s used to say:
‘One rupee saved is one rupee earned’. This influenced me a lot. This way I saved
plenty of money. I had around 100,000 rupees by the time I completed my
high school.
​I joined the Master Programme in Business Administration during the middle of
the 1990s. These were the early days of liberalisation, privatisation and globalisa-
tion of India and also other countries. One of my lecturers, while teaching ‘Business
Environment’, said that ‘One rupee spent is one rupee invested now’, in contrast to
‘One rupee saved was one rupee earned until yesteryears’. I asked him for clarifica-
tion as it was a bit contradictory to what I was told by my father. The lecturer kindly
clarified that business opportunities are increasing now due to globalisation.
Therefore, opportunities should not be viewed as ‘cost centres’ but as ‘profit cen-
tres’. This explanation had shifted my view. Then I started using my savings as an
investment.
​I started a few businesses like ‘man-on-wheels’ to deliver food prepared by oth-
ers and ‘online marketing’ for groceries while doing my master programme. Then I
invested all my savings and borrowed some money from my father for these busi-
nesses. Of course my family had to make a lot of sacrifices by reducing their
expenses. I started minting money and also creating wealth. I didn’t allow my fam-
ily to spend lavishly by controlling their expenses. I used to invest additional money
by doing so. Everybody in the family was not happy, and they used to murmur. But
my ears were deaf, and my mind was insensitive during such times.
​I observed the environment and started a real estate business of buying and sell-
ing land, house sites, house flats, office buildings etc. I was successful in this busi-
ness and started making more money. I have spread this business in all four states of
South India. I created thousands of jobs and built buildings worth of billions of
rupees. Of course I used to do business with my employees also. Don’t get fright-
ened when I say this. I used to pay less and get the highest human resource produc-
tivity or business per employee. My mother used to say ‘it is a sin’. I used to reply,
‘it is business and also service to the society as I created thousands of jobs and
supported millions of family members’. My family members started to oppose me
but not adamantly.
Ram: Professor, I have a question for Suresh.

Professor: Proceed.

Ram: Suresh, do you have another side of your face?

2 Greed and Family Attachment 17

Suresh: Yes, Ram. I am going to tell you about the same.

Professor and friends, suddenly I got an idea about corporate social responsibil-
ity (CSR). Then I started thinking of mileage from different kinds of CSR. My
father and brother were surprised to know ‘what is the mileage in CSR’. They
argued: ‘CSR is just service to the society without expecting anything in return.’ I
said there is ‘return everywhere and in everything’, including service. Nothing is
free in business. Then my father argued that then it is not service; it is business. I
said it is business in service and it is called ‘commercial social responsibility
(CSR)’, according to my lecturer. Then my brother said: ‘Your lecturer and you are
spoiling the motto of service.’ I said it is modern-day business, nothing to do with
my lecturer. It is taken from the business people and their practices.
I started hospitals and colleges as part of my social responsibilities. People
enjoyed these facilities a lot. I again started making money from these social ser-
vices also as the service is based on the amount the people pay. The cycle is repeated
in the sense that I created jobs and started earning by serving the society, of course
again business in job creation. Thus, I proved and have set a new trend of making
money in every area, let it be business or service.
Gopal: Suresh, I couldn’t understand. Please elaborate.

Suresh: Charge higher fee from students, pay less to the staff and get more work.

Gopal: Thank you.

Suresh: Professor and friends, I am proceeding with my case.

My mother requested me not to go for temples as part of my CSR. I got annoyed,
but I cooled down as I may lose my energy if I argue with them. I also calculated
how much time and energy I could spend on each of my transactions and also wast-
ing emotions arguing with my family.
Days passed. I got married, and my wife was always surprised and annoyed at
seeing my business practices. For me ‘money is money, nothing else’. I didn’t allow
them to argue with that.
My old father used to say: ‘My son, remember the last days of “Alexander the
Great”.’ I used to say, ‘Alexander the Great’. My father said: ‘What is the use for
mankind and what did he take with him at his end?’ I didn’t want to listen to the
philosophy as I am a practical businessman.
My parents left this world. But my earnings continued. My service, of course
commercial service and business in human resources, also continued.
My alma mater invited me to share my experiences with the students. I explained
the mileage in CSR and proudly explained my concept of ‘commercial social
responsibility’ while addressing the students. A young boy from a corner com-
mented, ‘it is commercial human resource management’, when I was explaining
how I earned money even in creating jobs. Subconsciously I said ‘yes’. I saw the
inspirational levels of the students and their bright faces. Somebody loudly said:
18 2 Greed and Family Attachment

‘You are too much greedy.’ There was a little argument between this young boy and
I, but I won and said it is the art of business.
However, I was surprised to see the newspaper the next morning. It published
most part of my presentation but with a headline ‘Greedy Businessman’. Now I am
annoyed with this boy who first coined me as ‘greedy’. Since then my wife, children
and friends started addressing me as a ‘Greedy Businessman’!
Initially I started ignoring it, later took it easy and eventually accepted it as a
‘title’ because money is dearest to me. I didn’t want to lose track of earning money.
I started winning again and again in my businesses.
I learned that there were export business opportunities in flowers and agricultural
products from the Caribbean islands to the USA and Europe. I got relevant market
research reports from consulting firms, which indicated excellent business opportu-
nities. I sold most of my real estate firms and invested the money in export business
in the Caribbean islands despite opposition from my family members.
I created employment for nationals to win over their confidence and at the same
time to get advantage of tax savings and the low cost of human resources. This busi-
ness crossed the teething troubles and started approaching a break-even point.
Slowly adverse conditions started to appear. The first one concerns local culture and
employees’ working culture. The employees were unable to cope with the skill
requirements and the sensitiveness of the plants and micro-level precautions. The
second problem related to crop disease due to climate change, resulting in a drop in
the quantity of output as well as the quality of output. The third problem was some-
thing that suddenly sprung in the industry environment in Africa. The flower indus-
try in Africa reached a boom stage with its cost advantage, as well as the suitability
of soil and climate in Africa. This posed tremendous challenges to my company. I
exerted all my efforts to meet these challenges. However, I was caught in acute
financial crunches in view of these adverse conditions.
This was really a test for my skills and efforts in foreign countries. I didn’t leave
any stone unturned to get out of these problems. But I was caught in the midst of all
these and lost all my hopes and sold the company to national investors at a price
nearly less than 5% of my initial investments.

 r. Ram and Friends, Now I Explain the Third Side

M
of My Face

My body strength and my age created different scenarios. My stresses, emotions

and frustrations resulted in physical and mental diseases. I started recollecting the
words of the young student in my alma mater. I am ‘greedy’, as the young boy
labelled! I also recollected what my father told me about ‘Alexander the Great’. Of
course I created wealth and jobs based on commercial thinking, but for whom, I
Greed: Good vs Bad 19

don’t know. And I also recollected the stories of the ‘Duck and the Golden Eggs’
told by our primary school teacher. It is too late to do anything. But I consoled
myself, saying that I was a business tycoon once. I wouldn’t have become an entre-
preneur and also a creator of jobs had I been a contented person. So though the
people call me ‘greedy’, I feel that I was a creator of wealth.
Professor, am I correct?
Professor: Suresh, of course you are partly right. Thank you for presenting your
case. Now, I explain.

Why Are People Greedy?

Greed normally results in wealth accumulation and/or gaining power. Of course

greed is not necessarily exclusively concerned with money or wealth; it may be
concerned with power, status, position, knowledge, network, relationship and the
like. Greed helps to gain power and thereby wealth and/or vice versa. Why do peo-
ple become greedy for money or wealth? Perhaps it is because of social, political
and economic power, which are derived from wealth. However, some may argue
that political power can’t be derived from wealth. It might be true in some cases/
countries. But it would be difficult to disprove that political power is not a derivative
of wealth altogether. There may be some exceptions as some people who possess
the least amount of wealth are politically and socially powerful. As far as social
power is concerned, most of the financially wealthy people are socially powerful or
are otherwise misers. Wealthy people can help others financially, provide jobs and
other means of economic opportunities and gain social power and status. However,
some economically poor people also become socially powerful by rendering service
to the society. Wealth accumulation normally leads to economic power and status,
like the top ten richest people in the World. So there is a purpose for people to be
greedy. Some people are misers but not greedy, in the sense that misers save and
don’t spend much out of what they have. But greedy people grab the wealth that
otherwise may be earned by others when the rules of the game are supposed to
be fair.

Greed: Good vs Bad

The belief that ‘greed is good to build capitalistic economy’ is perhaps widely
accepted. The logic is that greedy people may accumulate wealth by grabbing the
due shares of others in the process of supply chain and value addition. Therefore,
wealth may be accumulated by a few beyond their consumption capacity, resulting
20 2 Greed and Family Attachment

in capital accumulation and the growth of/recycling of investment. This in turn

results in increased manufacturing facilities, production, employment, profits,
growth in economic activity and so on and so forth.
Some further argue that there should be rich people, who could protect the inter-
est of the poor, like the strong people in a tribe protecting the weak and the leaders
protecting the followers through their tactics. They also use the example of chimps
protecting monkeys. They support hierarchies in societies and economies.
Mr. Ivan Boesky, while delivering his address at the UC Berkeley’s School of
Business Administration on 18 May 1986, stated that ‘Greed is all right, by the way.
I want you to know that. I think greed is healthy. You can be greedy and still feel
good about yourself.’ [1]
But the thought of many may be that ‘greed is not good at all’ as greedy people
may earn by unethical means as well as may not allow others from using their
resources or their due shares. In fact, greedy persons may not be able to use all the
resources they have as they have them in surplus but at the same time may prevent
others from using these existing resources for their basic needs.
But the reasons stated above and, in particular, Ivan Boesky’s views divert peo-
ple’s earlier thinking that greed implies negative connotation. The other thought is
that ‘greed’ performs some functions like inspiring entrepreneurship, helping capi-
tal formation and accumulation, increasing investment and economic development.
As all wealth accumulated by capitalists may not be consumed by them, they invest
to grow their wealth further. This investment performs further economic functions
and helps the country to grow economically, in addition to creating employment.
Thus, greedy people may contribute to wealth creation.
Suresh: Professor, can I share one of my experiences?

Professor: Suresh, proceed.

Suresh: Now I am recollecting a lecture delivered by one of my professors in

1975. My professor said more or less the same thing while dealing a chapter on
‘Capital Formation’ in the ‘Industrial Organisation’ course. In fact, our professor
didn’t deal with ‘greed’. Therefore, what I viewed was that capital accumulation
without ‘greed’ may perform economic functions, stated above, without exploiting
customers, employees, the society, bankers and creditors. But the maximisation of
capital accumulation may be possible with ‘greed’.
However, I am getting a nagging doubt about how capital accumulation could be
possible without ‘greed’. This nagging doubt is pushing me to recall my professor
in Marketing, who taught a number of concepts like need, want, demand, desire,
passion, ambition, aspiration and greed.
Professor, please clarify the difference between greed and ambition.
Professor: Suresh and other participants, it is a good question. I explain.
Greed: Good vs Bad 21

Ambition and Greed

In a way, greed and ambition are achievement motivators to come up with a busi-
ness. But greed by itself is out of selfish desires and hence is viewed as bad and
negative. Ambition, on the other hand, starts with a good intention to do well and is
positive by nature. But only when ambition takes an intensive form and the indi-
vidual wants to succeed at any cost and by any means would it have the potential to
fall into the category of greed. A person with greed may try to achieve success by
any means and at any cost, whereas a person with ambition may try to achieve it by
employing his or her fullest potentialities but not by any means and at any cost.
Thus, a person with greed may tend to resort to unethical means. This is because the
means to an end are also equally important as the ‘end’. While motivation is helpful,
the means are necessary to ensure that the individual is within ethical limits to reach
the end result.
The source for greed and ambition is physiological, sociological and psychologi-
cal desire. For example, physiological desire leads to thirst and hunger. These are
converted into needs, like water or food. Sociological deficiencies lead to needs like
social relations and belongingness, while psychological deficiencies lead to esteem
needs like power, recognition, achievement and distinction. When the need becomes
strong, it takes the shape of want. For example, if a candidate has a strong need to
get a job and exerts all efforts and uses all his/her energies to get the job, it is viewed
as want. In this case, the candidate wants a job rather than is in need of a job. The
candidate is deemed to be ambitious if he/she thinks that he/she should get the job
to the maximum extent based on his/her suitability to the job. In contrast, the candi-
date is deemed to be greedy if he/she thinks that he/she only should get the job by
any means and at any cost by grabbing others’ chances/due shares. Therefore, if the
strong want is converted into ‘greed’ with selfish motives, then it is viewed as
unethical.
Ambition by itself is good as it inspires and motivates an individual to do better
on his/her own. But it should not become greed or a selfish motive by thinking that
only he/she should get it at any cost or by any means and by grabbing others’
chances or share. Ambitious people allow others to have their due share in the
opportunities as they don’t want everything for themselves. Ambition is not unethi-
cal, whereas greed is viewed as unethical as it involves grabbing others’ due shares.
Thus, it should be understood that the line between ‘ethical’ and ‘unethical’ is
very thin.
Suresh: Professor, thank you. Now I got a clear idea that both ‘greed’ and ‘ambi-
tion’ lead to capital formulation and economic development through the process of
value creation and value addition. While greed does this function by exploiting oth-
ers/grabbing others’ due shares, ambition does the same by ethical means, allowing
others to have their due share and to grow as well. In other words, ambition helps
for the distribution of resources due to the stakeholders. This distribution process
22 2 Greed and Family Attachment

creates a demand for goods and services and hence helps in economic development
on the basis of the multiplier effect. But greed emphasises on accumulation and
hence does not allow for the distribution of resources according to the shares due to
the stakeholders. As such, it may prevent a multiplier effect and also a balanced and
sustainable economic growth. In addition, ambition may help to achieve a higher
and balanced economic growth, whereas greed may lead to limited economic
growth as increased production may not be consumed due to the concentration of
resources in the hands of the greedy people.

Professor: Suresh, you are right. For example, when the owner of a business earns
a lot and pays his/her employees their due share and the suppliers their due input
and charges a reasonable price from the customers, it is a fair deal. In this case, we
can’t call the businessman greedy as he is not accumulating wealth for himself, even
though he earns a lot. The businessman in this case is an ambitious person who has
a desire to achieve a large amount of profit.
Similarly, some companies earn a lot but also spend a large portion of their prof-
its to create a social impact, like Toms and One Hope Wine. We can’t label such
companies as greedy as they more or less duly distribute their earnings. Earning a
lot but duly distributing to all concerned is an attribute of ambition but not of greed.

Greed Is the Embodiment of Selfishness and Badness.

Suresh: Professor, thank you.

Now it is clear to me. I categorically disagree with Ivan Boesky as greed is com-
pletely selfish. Ambition may result in greater good and the welfare of all. Ambition
may also lead to higher and balanced economic development, but greed may lead to
limited and imbalanced economic development. Greed results in the growth of one
party at the cost of exploiting others by using unethical modes.
Professor: Friends, you understood the difference between greed and ambition.
Let me explain further.
Mehar Baba indicated that greed is an emotional and restlessness state of mind.
Baba dictated that greed is concerned with craving for power and possession for the
purpose of gratification of desires. Satisfied desires result in the emergence of other
new desires as people can never be satisfied with desires. Thus, greed is never-­
ending. Consequently, greed never leaves people satisfied [2].
It is further clear that greed results in acquiring not only money but also position
and power, as indicated above. Anyhow, these three, viz. money, power and posi-
tion, are interdependent, and one may be derived from the other.
Greedy people may grab resources that are limited in supply in order to satisfy
their needs and/or wants at the cost of others or deny others from enjoying their due
share. In addition, they may store/hoard these limited resources for their future con-
How Did Greed Blow Up in the Corporate World? 23

sumption/security by snatching others’ due shares. In other words, the greedy peo-
ple satisfy even their security, social and esteem needs at the cost of others’ basic
physiological needs. Thus, they may deprive others’ current basic and survival
needs and their future opportunities. They obstruct others from getting their due
share in the resources. Greedy people may also grab others’ opportunities for social
relations and opportunities to satisfy their esteem needs in order to enjoy a special
social status and recognition of achievement more than they deserve. In other words,
they may enjoy recognition more than they deserve by depriving others of having
their due share. It does mean that greedy people may not hesitate to resort to unethi-
cal means while grabbing others’ due shares in current resources and future
opportunities.

How Did Greed Blow Up in the Corporate World?

Gordon Gecko, who gave his speech in 1987, felt that ‘CEOs’ salaries were tiny
compared with today’s lavish packages. Executives didn’t focus single mindedly on
maximizing stock prices; they thought of themselves as serving multiple constituen-
cies, including their employees.’ But ‘these days we are so steeped in greed-is-good
ideology that it’s hard to imagine that such a system ever worked’. [3]
‘Management theory’ provides that incentives are provided to the top executives
of the corporate world with a view to enhancing the company’s profitability in terms
of innovation, operational performance, human resource efficiency, profitability,
shareholders’ wealth and thereby stock price. But the ‘management practice’ of
executives took a different shape, in the sense that executives took the complete
shortcut of the management theory/process. Through their privilege of having insid-
er’s knowledge, they manipulate financial information and artificially boost stock
prices through window dressing of financial statements without improving corpo-
rate performance, or even at the expense of diminishing corporate performance in
some cases. They do all kinds of window dressing by fabricating data and informa-
tion in order to get incentives rather than improve corporate operational and finan-
cial fundamentals and get eligibility for incentives. These incentives help them to
further window dress to boost the market price of their shares and then download
them before the real situation is known by the public or even by the owners/share-
holders. We can discuss the Satyam Computers Limited’s scandal, which was
widely covered in the media, as an example here.
Narayana: Professor, it is good that you have mentioned as example Satyam
Computers Limited. Please explain its relation to greed.

Professor: Narayana and other participants, be patient for some time. I will
explain.
Greed for incentives and windfall profits generated by incentives may motivate
the executives to cheat everyone down the line, including the shareholders, the cus-
24 2 Greed and Family Attachment

tomers, the employees and the community. Political lobbyists may sometimes take
part in these unethical means of earning, along with the corporate executives, for
example by receiving corporate donations from political parties [4]. It was felt that
most of the scams and thereby the economic downturn in the USA were the result
of the incentives provided to CEOs and other top managers.

Greed Led to Collapse?

Now we recall the agency system in the corporate world. Owners used to have the
desire for profit maximisation. This desire has to be fulfilled by managers, who are
agents of the owners. The managers before 1980s were meeting the needs of all
stakeholders and didn’t fully work for the maximisation of shareholders’ wealth.
The idea of incentives in the form of stock options given to the CEOs and other top
executives was introduced prominently during the 1990s in order to motivate the
CEOs to maximise shareholders’ wealth rather than maximise the well-being of all
kinds of stakeholders. These incentives might have helped shareholders to get the
maximum benefit for themselves for some time. Later, this might have prompted the
greediness among the CEOs and other top executives to make a lot of money for
themselves rather than for the shareholders. It does mean that the idea didn’t work
in the direction it was fabricated by the shareholders. CEOs, rather than maximising
the shareholders’ wealth through improving the fundamentals of organisational
profitability, might have artificially improved profitability to get more shares under
stock option and artificially inflate share prices with a view to maximising their own
wealth by downloading their individual shares acquired through stock option incen-
tives before they quit the company/it was known to the owners/shareholders and the
public. Thus, there might be elements of unethical practices of window dressing in
artificially boosting profits and share prices for the benefit of getting more shares
and/or downloading them without caring for the losses to be incurred by all stake-
holders and then quitting the organisation and grabbing similar opportunities in
other organisations.
It was felt that this purported greed of CEOs and top executives led to scams and
the collapse of some companies, like Satyam Computers and Enron.
The issuance of strict guidelines to the heads of audit committees by the Financial
Services Authority in the UK resulted in the reduction in the scope for greed by
CEOs and top executives and a decline in the creation of scams in the UK. But the
chairmen of these committees were not full-time officers and do not have their own
offices. Therefore, the implementation of the guidelines of the Financial Services
Authority was put in question. However, due importance was given to audit com-
mittees in the UK, though it was not the case in the USA, until the collapse of
Enron. Thus, external auditors need to play a critical and a more serious part in
detecting the possibility of designing fraud to stop the greed of managers.
How Did Greed Blow Up in the Corporate World? 25

The carrying out of non-audit work by audit firms caused them to be lethargic in
carrying out the core activity of auditing. The sale of research work by underwriting
firms, like firms’ ratings, might be another factor that contributes to fraud [5].

Greed, Recession and Environmental Damage

People who argued that greed fuels the economic growth of a country lately realised
that it, in fact, resulted in scams and thereby deep and long-lasting economic reces-
sion and crisis, which in return led to a colossal waste of resources as well as rela-
tionships and trust. In addition, they recently realised that greed might have led to
environmental damage, deforestation, raising sea levels, desertification, ocean acid-
ification, species extinctions and so on [6].
Suresh: Professor, now it is clear to me that greedy people also contributed to
economic turbulence, colossal waste of resources and environmental damage, in
addition to harming the helpless people who lead an ethical life.

Professor: Let me explain further. Greed causes some people to earn money that is
more than sufficient for their entire life and the life of their children and grandchil-
dren. This cushion may make the next generations unproductive and resort to anti-
social activities. Added to this, greed makes people mostly unethical [3].

Greed and Psychology

This analysis further gives rise to another issue. Is greed derived from physiological
or sociological or psychological factors? Now it is relevant to briefly speak about
Abraham Maslow’s theory of hierarchy of needs. As almost all of you know, he
identified five types of needs in the order of physiological, security, social, esteem
and self-actualisation. Greed, like ambition, helps in satisfying the first four levels
of needs.
Is greediness due to ‘psycho-unethical anxiety’ of oneself? I use the word
‘psycho-­unethical anxiety’ to denote a state of psychological anxiety for unethically
accumulating wealth or power or position that duly belongs to others in order to
enjoy special recognition and/or future economic security. I say it is ‘psychological
anxiety’ because people grab some things even when they’re not needed for current
use. The reason for me for posing this question is that people grab others’ resources
even when they’re not required for their current needs when others are actually in
current need of such resources for their survival or for satisfying their basic neces-
sities. Why do people grab others’ resources even when they don’t need them? This
is because society especially recognises and respects people who possess resources/
opportunities more than what they need as they may spare such resources for them
26 2 Greed and Family Attachment

in the name of ‘helping’ others. Society calls such people as rich/influential/oppor-

tune/lucky/foresighted people. People assume a higher social status when they
become rich. Thus, it is psychological anxiety. I use the term ‘unethical’, owing to
the fact that greedy people may grab others’ due shares in resources and future
opportunities.
Therefore, people become greedy in order to have special recognition in society,
in addition to having economic security from future uncertainties/contingencies/
risks/turbulence. Actually, ambitious people do also have psychological anxiety.
They don’t grab others’ shares unethically. They earn the resources they enjoy or
create opportunities for themselves as well as for others. But it may be said that
ambitious people have ‘psycho-ethical anxiety’, whereas greedy people have
‘psycho-­unethical’ anxiety.

Can Greedy People Be Self-Actualised?

Narayana: Professor, now I have another question relating to Maslow’s highest

hierarchy of needs, i.e. self-actualisation needs. My question is: Do greedy people
resort to similar unethical means to grab others’ opportunities in order to satisfy
their self-actualisation needs also? I would like to get some clarification about ‘self-­
actualisation needs’ before you answer the question.

Professor: Good. I will clarify. According to Maslow, self-actualisation occurs

when an individual realises his/her potentialities to the maximum extent. Maslow
felt that some people like Abraham Lincoln, Albert Einstein and Thomas Jefferson
are self-actualised, and hence he studied them to find their common characteristics.
Self-actualised people, according to Maslow, (i) hold on to the strange and the
vague; (ii) consent to themselves along with all their faults; (iii) prefer and relish the
process not just the goal/outcome; (iv) are fundamentally progressive and prefer to
be calm and comfortable; (v) are inspired by advancements (grow to perfection);
(vi) have a purpose in life; (vii) ignore petty problems and concentrate on the core
and significant things; (viii) are grateful; (ix) prefer intense relationships with a less
number of people rather than becoming a universal friend as they believe in the say-
ing ‘a friend to everybody is a friend of nobody’; (x) are humble; (xi) resist encul-
turation (these people prefer following individual ethics to social codes); and, (xii)
despite all this, may not be perfect [7].
In fact, Milton Friedman argued that greed can’t be eradicated, but a mechanism
may be developed to bring the harm caused by greed to the least extent [6]. In con-
trast to Milton Friedman’s views, we can say that people can be ambitious rather
than greedy as greed is accompanied by unethical practices as greedy people may
harm society. Greedy people may enjoy recognition, richness, power and position
by deceiving others. It may mean that people with anxiety for recognition but who
How Did Greed Blow Up in the Corporate World? 27

are incapable of achieving such recognition through positive means or competen-

cies resort to unethical means. Greedy people have psychological anxiety for recog-
nition and fulfil that anxiety through unethical means as they may be incapable of
doing so through ethical means. Hence, greed might be the result of ‘psycho-­
unethical anxiety’.
Narayana: Professor, now it is clear that greedy people can’t strive to satisfy their
self-actualisation needs as they may not possess the first eleven characteristics listed
above, particularly being ethical. So my earlier question doesn’t follow.

Professor: Narayana, good. I further explain.

Ambition and greed work in the same direction but with different intentions in
satisfying physiological, security, social and esteem needs. It means that ambitious
people derive satisfaction but greedy people are never satisfied. Ambitious people
strive to satisfy their self-actualisation needs depending on their capabilities. Greedy
people may not aspire for self-actualisation as they may not possess the characteris-
tics needed to be self-actualised. In addition, the achievement of self-actualisation
requires self-capabilities, determination and commitment and the use of ethical
modes rather than unethical and bullying tactics.
Suresh: Professor, it is clear to me that greed is not conducive as it resorts to
unethical modes. Greedy people may not be self-actualised. Their achievements are
also manipulated through unethical means. They may not make distinctive contribu-
tions to their profession, the economy and the society as greed is a ‘psycho-­unethical
anxiety’.

Mukund: Professor, why is a ‘self-actualised person’ significant?

Professor: Mukund, good question. Let me explain. The process of fulfilling self-­
actualisation requires the realisation of one’s own strengths, weaknesses and poten-
tialities. In addition, it requires one to realise one’s own self in terms of the purpose
of one’s own life, treat the entire humanity equally, strive for perfection, focus on an
‘integrated long-term system’ rather than a short-term aspect and/or a fraction of it
and visualise a mutually interdependent system, rather than a fragmented system,
and a mutually inclusive and sustainable and impartial distribution of benefits to all
fragments of the system. The self-actualised person understands both positive and
negative aspects of himself/herself and appropriately develops the positive aspects
and eliminates the negative aspects. In addition, the self-actualised person can’t
think of grabbing others’ due resources or opportunities. They try for perfection by
being ambitious rather than by being greedy as they are thinking about an integrated
and interdependent mutually inclusive and sustainable system.
In a nutshell, a self-actualised person or people thriving for self-actualisation
can’t think and behave like greedy people. Let me quote some verses from Bhagavad
Gita relating to greed.
28 2 Greed and Family Attachment

Dharmatman Lord Sri Krishna mentioned about greed in different situations

while preaching Bhagavad Gita to Arjuna. I quote some of the important verses
from Bhagavad Gita that deals with greed, as presented in Exhibit-2.1. I present the
meaning of the verses as provided in Srimad Bhagavadgita, published by Gita Press
Gorakhpur, India, 2019.
Exhibit-2.1: Meanings of Important Verses from Srimad Bhagavadgita That
Deal with Greed
Chapter 3, Verse 37: ‘The Bhagawan said: It is desire begotten of the element of
Rajas, which appears as wrath; nay, it is insatiable and grossly wicked. Know
this to be the enemy in this case.’
Chapter 3, Verse 38: ‘As fire is covered by smoke, mirror by dust, and embryo by
the amnion, so is knowledge covered by desire.’
Chapter 3, Verse 39: ‘And, Arjuna, knowledge stands covered by this eternal enemy
of the wise, known as desire, which is insatiable like fire.’
Chapter 3, Verse 40: ‘The senses, the mind and the intellect are declared to be its
seat; covering the knowledge through these, it (desire) deludes the embodied
soul.’
Chapter 3, Verse 41: ‘Therefore, Arjuna, you must first control your senses, and then
kill evil things which obstructs Jnana (Knowledge of the Absolute or Nirguna
Brahma) and Vijnana (Knowledge of Sakara Brahma or manifest Divinity.’
Chapter 3, Verse 43: ‘Thus Arjuna, knowing the self which is higher than the intel-
lect and subduing the mind by reason, kill this enemy in the form of desire that
is hard to overcome.’
Chapter 5, Verse 22: ‘The pleasures which are born of sense-contacts, are verily a
source of suffering only (though appearing as enjoyable to worldly-minded peo-
ple). They have a beginning and end (they come and go); Arjuna, it is for this
reason that a wise man does not indulge in them.’
Chapter 14, Verse 17: ‘Wisdom follows from sattva, and greed, undoubtedly, from
Rajas; likewise, obstinate error, stupor and also ignorance ensue from Tamas.’
Chapter 16, Verse 21: ‘Desire, anger, greed-these triple gates of hell, bring about the
downfall of the soul. Therefore, one should shun all these three.’
Chapter 17, Verse 25: ‘With the idea that all this belongs to GOD, who is denoted
by the appellation “TAT”, acts of sacrifice and austerity as well as acts of charity
of various kinds, are performed by the seekers of liberation, expecting no return
for them.’ [8]
Source: Srimad Bhagavadgita, Gita Press Gorakhpur, India, 2019.

Lord Shri Krishna emphasised the word ‘Lust’ in Chapter 3 of ‘Karma Yoga’ and
the word ‘Greed’ in Chapter 14 of ‘Three Modes of Material Nature’ of
Bhagavad Gita.
Kiranmayi: Professor, I would like to know the various phases of formation of
greed as Lord Sri Krishna mentioned in Verse 17 of Chapter 14 that ‘from the mode
of “Rajas”/“Passion”, greed develops’.
How Did Greed Blow Up in the Corporate World? 29

Professor: Kiranmayi, wonderful question. Let me explain.

Initially I thought that physiological, social and psychological deficiencies
develop or take place in almost all human beings. Later on I realised that spiritual
deficiencies do also take place in some human beings.
The initial stages of these deficiencies may be termed as ‘desires’. Desire is a
feeling of having something or wishing for something to happen. Intensified desire
becomes need. The dictionary meaning of need is to ‘require something because it
is essential or very important rather than just desirable’. [9]
Intensified need becomes lust. Lust is a strong want involving an emotion to fulfil
something [10]. Further, intensified lust becomes passion/‘rajas’.
I feel that intensified passion becomes greed. Greed is an excessive desire/want
to obtain ceaseless things beyond one’s own needs [11]. Greed is a desire/want for
endless accumulation of wealth and power. I am doubtful whether it would be pos-
sible to accumulate wealth endlessly following ethical principles. I hope ambition
may help to accumulate wealth following ethical principles, but not endlessly.
Ambition is a motivated desire with a determination to achieve and/or succeed [12].
Thus, ambition may help in achieving something.
As I explained earlier, there is a significant difference between greed and ambi-
tion, even though both of them are backed up by desire. Ambition is achievement
motivation based on an internal drive, whereas greed denotes the acquisition and
possession of what is more than one’s needs, depriving others. Thus, ambition is
positive and greed is negative.
I hope I made the concepts clear.
Sukanya Devi: Yes, Professor. Now I want to know the different stages of the
formation of greed. In fact, I am repeating this question.

Professor: Good, Sukanya Devi. I realised it, and I will explain it now with an
example.
The first stage is desire. How do people gain desire? Desire is the sensation of
possessing something or wanting a certain incident to happen. Do people get the
feeling of wanting to have something because of their physiological anxiety? The
answer to this question is ‘not necessarily’, as some desires, like belongingness in a
group and society, are social deficiencies and achievement, recognition etc. are psy-
chological. Physiological, social and psychological deficiencies are internal to one,
causing desires.
I have observed that people, including myself, may at times develop anxiety by
observing or watching others. In other words, deficiencies are formed when we
observe or watch people who possess something that we don’t possess. For exam-
ple, one of our colleagues was traveling by public transport most comfortably along
with us, but he developed a desire to buy a four-wheeler when his neighbours bought
and were driving four-wheelers to their respective offices. But his salary was not
enough even to meet his basic needs at that time. We might have observed several
such incidents. It does mean that external forces are also responsible for the forma-
30 2 Greed and Family Attachment

tion of desire. Desire, when it is intensified due to internal forces like self-­deficiencies
and external forces like observations of others and influence of others, becomes
need in the sense that it becomes essential or very important rather than just desir-
able. For example, our colleague’s desire to have a four-wheeler became a need
when he was influenced by his continuous observation of neighbours possessing
four-wheelers. It is also true in the case of other needs, such as security needs, like
earning money today for tomorrow’s requirements; social desires, like developing
friendship with other people to share happy as well as sorrowful incidents in life;
and also psychological desires, like becoming distinguished in the community.
Our colleague had a need to buy a four-wheeler, but he didn’t have enough
money to buy it. His wife and children also expressed the same desire when they
were watching day in and day out their neighbours driving four-wheelers with their
families to various social events. This need got intensified and became lust/want
when my colleague’s family members started asking him time in and time out for
the same. I repeat the meaning of lust. Lust is a deep want for an object or for situ-
ations to realise the emotion. My colleague was experiencing a similar thing, and in
fact his family members had continuously forced him to buy a four-wheeler.
This unfulfilled lust/want, which was forced upon him by his family members,
compelled him to start a business to earn and buy a four-wheeler. The intensified lust
in him developed into passion. Let me give the meaning of passion once again to
remind you. Passion is an ardent emotion, an enthralling zeal or a desire for something.
He earned money in his business, and he bought a four-wheeler. He enjoyed a
status in society and started earning lots of money through unethical means and
bought six cars, though the number of his family members was only four. And he
used to change cars as and when new models arrive in the market. He bought more
than what his family needed, not only cars but also other assets. I hope he is greedy
now, not just for cars but for much more. His passion for buying one car was intensi-
fied, and it became greed. Let me provide again the meaning of greed. It is an exces-
sive desire to obtain ceaseless things beyond one’s own needs. The degree of
excessiveness refers to the re-formation of further wants again and again once the
existing wants are fulfilled.
Uncontrolled desires transform into greed, as shown below.

Desire Need Lust (Strong Want) Greed

Wrath

Greed-formation process

Greed and Truth

Though almost all of us know that greed is bad, we still prefer to earn much more
than what we need. This is because of lust/want. As such, Dharmatman Sri Krishna
Bhagawan in Verses 37–43 of Chapter 3 of Karma Yoga indicated that lust creates
Satyam Computers Limited Case and Greed (as Reported in the Media by Investigating… 31

contact with the material world and makes us feel more comfortable, secured and
powerful, which in turn brings recognition and a sense of achievement in this mate-
rial world. As Lord Sri Krishna indicated, we fail to use our intelligence to recognise
the reality that all the derivatives of lust are not permanent and hence most of the
inner and original purposes of lust can’t be achieved. In fact, the hard facts of his-
tory testify what Lord Krishna said about lust and greed.
For example, the descendants of King Akbar led a miserable life in Kolkata.
Sultan Begum, daughter-in-law of Bahadur Shah Zafar’s great grandson, who
was defeated by the British in 1857, lived in a hut in Kolkata. The descendants of
Mughal Emperor/King Akbar led their life on a pension of £60, though they were
expected to lead a luxurious life as their ancestors ruled a wealthy empire. Sultan
Begum and her children struggled to meet both ends on a basic pension. She was
doing business of selling tea and traditional female garments [13].
I am not indicating here that King Akbar was greedy. But I would like to indicate
that whatever King Akbar earned and accumulated in his lifetime did not become
available to his descendants for them to lead a comfortable life. I would like to state
that whatever we earn more than our current needs may not be enjoyed by our
descendants. Thus, the purpose of greed may not be achieved in the long run. We
fail to observe this truism and ignore the consequences of the outcome of lust
despite several such historical truths.
Why do we ignore the truth or disbelieve our own intelligence? Lord Sri Krishna
in Verse 38 of Chapter 3 of Bhagavad Gita indicates that ‘As fire is covered by
smoke, mirror by dust and embryo by the amnion, so is knowledge covered by
desire’. It does mean that lust makes us ignorant of the truth that we cannot share the
rest of our earnings with our decedents. Therefore, we accumulate wealth more than
our needs.
It is felt that ‘lust’ is endless and people with lust get burnt in it. It is felt by many
that Mr. Ramalinga Raju of Satyam Computers is a living example of how lust burns
people. We now discuss the case of Satyam Computers Limited, as I mentioned
earlier.

 atyam Computers Limited Case and Greed (as Reported

S
in the Media by Investigating Agencies)

Mr. Byrraju Ramalinga Raju founded Satyam Computers Limited. He was from a
farming family who obtained his Bachelor of Commerce degree from India and
Master of Business Administration degree from Ohio University, USA. He estab-
lished Dhanunjaya Hotels and Sri Satyam Spinning Mills funded by Andhra Pradesh
Industrial Development Corporation (APIDC) with an investment of Rs. 8 crores
[14]. After the failure of Sri Satyam Spinning Mills, Mr. Ramalinga Raju estab-
lished Satyam Constructions. Thus, he shifted his industry from hotels to spinning
mills and to real estate before venturing in information technology [15].
32 2 Greed and Family Attachment

Satyam Computers Limited was incorporated by Mr. Raju and his brother, Mr.
Rama Raju, on 24 June 1987.
Satyam Computers Limited was built on sound and modern management prac-
tices, like (a) value for employees, work for excellence, entrepreneurship and
­customer service; (b) organisation structure based on strategic business units mak-
ing each major department a strategic business unit responsible for efficiency and
profits/losses; (c) making the customer the centre of all its initiatives; (d) the 5Cs
approach, viz. communication, collaboration, competency enhancement, customer
intimacy and competitive edge; and (e) belief in and the practice of corporate social
responsibility through ‘Aambana’, an umbrella organisation that provides commu-
nity services in the areas of education, health and environment in urban, semi-urban
and rural places [16].
But the company became a victim of scandal adversely affecting all stakehold-
ers. Now I explain in detail this scandal.
It is viewed that this case was a major unethical case that affected investors
relentlessly and shattered the name and fame of the country in the global economic
circle. The scam was done by fabricating financial statements, bank deposit certifi-
cates and other documents and by deceiving intelligent members of the board, inter-
nationally renowned credit rating agencies and auditors.
The Central Bureau of Investigation (CBI) filed first charge sheet against Satyam for
“offences of criminal conspiracy, cheating, forgery and falsification of accounts.” [17]

Background

As mentioned, Satyam Computers Limited was incorporated by Mr. B. Ramalinga

Raju and his brother, Mr. Rama Raju, on 24 June 1987.
The significant achievements of the company are as follows:
1. It had a public issue offering on the Bombay Stock Exchange in 1991.
2. Four subsidiaries of Satyam Computers Limited, viz. Satyam Renaissance
Consulting Limited, Satyam Enterprise Solutions Private Limited, Satyam
Spark Solutions and Satyam Infoway Private Limited, were started in 1996.
3. Satyam bagged a number of highly rewarding awards and world-renowned
certificates.
4. It got its first Fortune 500 client, Deere and Company.
5. It was listed on the New York Stock Exchange.
6. It was ranked as an exporter after Tata Consultancy Services, Infosys and Wipro
in India.
Problem in Perspiration 33

7. Satyam Infoway (Sify) was listed on the National Association of Securities

Dealers Automated Quotations (NASDAQ).
8. It opened its offices in Singapore, Dubai and Sydney.
9. Its number of employees grew from 20 to 50,000, and the number of countries
where it operated grew from 1 to 67.
10. MZ Consult recognised Satyam as a leader in corporate governance and
accountability in India on 14 April 2008.
11. The World Council for Corporate Governance awarded Satyam the ‘Global
Peacock Award’ for global excellence in corporate accountability in September
2008 [18].
12. Despite the scam, Mr. Ramalinga Raju has a philanthropic mind. He estab-
lished Byrraju Foundation in 2001 and provided services in the areas of health-
care, sanitation, primary education and adult literacy in rural areas.

Problem in Perspiration

Satyam was preparing the background for its fraud in its backyard while exhibiting
its achievements, presented above, at its front desk. In fact, it received prestigious
corporate governance awards in the international scenario while cooking a quite
opposite scenario at home.
For example, Mr. Raju, on 16 December 2008, announced his decision to acquire
two Maytas companies, i.e. Maytas Infrastructure Ltd and Maytas Properties Ltd,
for $1.6 billion, saying that he wanted to deploy the cash available in the company
for the benefit of investors [18], notwithstanding the worries elevated by indepen-
dent board directors about diversification into an unrelated, risky sector rather than
sticking to its core competency and about valuation and other issues [19].
It was stated that the independent directors also got the information through a
whistle-blower, former senior executive Mr. Jose Abraham, on 18 December 2008.
Mr. Raju’s two sons floated Maytas Infrastructure and Maytas Properties (the word
‘Maytas’ is a reverse of the word ‘Satyam’). It was claimed that Mr. Raju manipu-
lated the accounts of Satyam to show surplus cash with an ulterior motive of acquir-
ing the two Maytas to help his two sons or of diverting the resources of Satyam to
his sons’ companies. In a befitting manner, the move was outright rejected by the
board of directors as well as investors.
The share prices reacted because of concerns about Satyam’s corporate gover-
nance. It was also stated that Satyam Computers was banned from dealing with the
World Bank, which took effect from 23 December 2008 and lasted for 8 years,
because of issues of stealing data and corrupting its employees. The independent
directors quit the board.
It was reported that Mr. Ramalinga Raju, on 7 January 2009, admitted that he
manipulated their finances worth Rs. 7000 crores with an ulterior motive of buy-
ing Maytas.
The following unethical practices by Satyam were noticed:
34 2 Greed and Family Attachment

• Overstatement of assets by US$ 1.47 billion and presentation of non-existent

bank loans for US$1.04 billion
• Overstatement of income continuously
• Under-reporting of liabilities on its balance sheet
• Presentation of cash that was not existent in the balance sheet
• Creation of a number of bank statements
• Inflation of bank accounts
• Inflation of income statements by claiming interest income from the fake bank
accounts
• Inflation of revenue through creation of fake customers and invoices
• Unlawfully securing loans for the company by the global head of internal audit
by forging resolutions
• Non-presentation of cash in the balance sheet
• Diversion of company money to Mr. Raju’s personal accounts
• Inflation of company’s profitability
• Completion of 112 sale deeds, which were recovered by the Andhra Pradesh
State CB-CID from the residence of Mr. Raju, who owned 4.3 per cent in Maytas
Infra
• Diversion of a lot of cash to the remaining firms that Mr. Raju owned since 2004
• Increase of staff numbers by ten thousand and drawing of Rs. 240 crores per
year, as confessed by Mr. Vadlamani Srinivas, chief financial officer at Satyam,
on 22 January 2009
• Sidetracking of an enormous amount of money to Mr Raju’s other companies
• Misleading audit reports submitted by the auditors of Satyam, who consequently
confessed that such reports were based on misleading financial statements pro-
vided by the company
It was indicated that the Enforcement Directorate, on charges of money launder-
ing, attached properties worth Rs. 1000 crores by 2010, such value belonging to
Ramalinga Rau’s family and others, and acquired 4000 acres of land in custody,
which belongs to Raju’s family and located in the Loyapalli village near
Ibrahimpatnam of Ranga Reddy district in the state of undivided Andhra Pradesh
and the current Telangana state in India.
The deceptive account statements compared to the account statements after the
confession of Mr. Ramalinga Raju indicate that the negative balance of a reserve
account of Rs. 415.47 crores was presented as a positive balance of Rs. 8392.23
crores. Unsecured loans were reflected as Rs. 234.80 crores as against Rs.1464.80
crores. Sundry debts were shown as Rs. 2651.36 crores as against Rs. 490 crores.
Cash and bank balances were presented as Rs. 5312.62 as against Rs. 272.62 crores.
Interest accrued on fixed deposits was shown before confession as Rs. 376.34 crores
as against nil stated after confession. In total, the net current assets before confes-
sion were shown as Rs. 6676.49 crores as against a negative balance of Rs. 901.21
crores [20].
In addition, Mr. Raju artificially increased the share price by means of insider
trading and offloaded 3,90,75,440 shares owned by promoters and Mr. Raju’s fam-
Problem in Perspiration 35

ily worth Rs. 3029.67 crores, according to the findings of the Serious Fraud
Investigation Office (SFIO) from April 2000 to 7 January 2009. Consequently, the
percentage of stock owned by Mr. Ramalinga Raju declined from 25.6% in 2001 to
3.6% in 2009. They used the money to purchase land in the name of others. Rating
firms’ dubious role also helped Mr. Raju in inflating the share price [21].
Ultimately, Mr. Rama Raju, the chief finance officer of Satyam, and others were
also charged, even though Mr. Ramalinga Raju took sole and total responsibility.
The then Andhra Pradesh Police arrested Mr. Ramalinga Raju and B. Rama Raju for
criminal breach of trust, cheating, criminal conspiracy and forgery under the Indian
Penal Code [22].
Naresh: Professor, are greed and anger connected to each other?

Professor: Naresh, why did you ask this question? Do you have something in your
mind?

Naresh: Yes, Professor. My own experience! I used to be angry, and my case also
ended up like Satyam’s case.

Professor: Naresh! You can proceed with your case. We will see the link at the end
of your presentation.

Naresh: Professor, thank you. Now I will tell you my case.

I still remember my childhood days when I always demanded things done as I
wished and getting them done by my parents. One rainy day, we were passing a
shopping mall at around 10 pm while returning home after visiting a paediatrician
for treatment for my sickness due to cold and cough. I asked my mother to buy an
ice cream for me. She adamantly refused, saying ‘you are a fool, you are already
suffering from cold and cough’. I ignored my mother and turned to my father’s side
and looked at him ‘eye to eye’. My father’s face suddenly became pale and said
apologetically: ‘My dear son, you are already suffering from cold and cough and we
are just coming from paediatrician and it is raining now. So I will buy some biscuits
or chocolates for you now.’ I shouted: ‘No, I want ice cream only!’ My father tried
his level best to convince me. I became angry and started shouting and crying. My
father became restless. His restlessness gave me a message that I am going to win.
He yielded to my anger and bought ice cream for me. To my misfortune, I was
caught by fever next morning and suffered for five days. My mother kept murmur-
ing until I recovered from fever.
I remember similar minor incidents when I was angry with either my father or
mother or both. My parents used to yield to my demands as I was restless and used
to frighten them when I was angry.
I forgot to tell you an important incident that happened when I was selecting my
intermediate college. At that time, it was unclear to me why I had selected a college
that was opposed by my parents adamantly. I can tell you something. Unconsciously
or subconsciously, certain forces worked within me. These include the fact that
36 2 Greed and Family Attachment

friends of my choice, including girlfriends, selected that college. In addition, cam-

pus life in that college was more fun, having less pressure in learning. Lecturers
were liberal and were close to students. In a nutshell, education was not everything
there as it embodied a less competitive environment. But my parents were more of
professionals and were serious in life. This caused a dichotomy, which might have
resulted in a conflict between me and my parents. At that time, I felt that my parents
were orthodox while my friends’ parents were progressive. I exerted all my ener-
gies, including aggressiveness, and forced my parents to yield to me.
I realised what I lost by being angry with my parents and opting for an intermedi-
ate college that was not primarily focused on education as most of our college mates
secured low scores while our other friends who joined another college, which was
opted by their parents, obtained state and national ranks. My parents were silent and
never commented on anything. I felt humiliated and felt shy every time I met with
my old friends from another intermediate college. Ultimately, they joined under-
graduate programmes of their choice, and I was left with no other choice but to join
programmes and universities that were ‘least preferred’. The complete silence
maintained by my parents caused a lot of humiliation to me. I didn’t know about my
friends who graduated along with me from the same college.
I pulled my socks and changed my behaviour. But it seemed that it was too late
as my parents still kept their silence except about giving money.
I started getting angry with myself. I joined the Social Sciences programme for
my undergraduate degree in a least preferred university. But I exerted all my ener-
gies and put my efforts exclusively on studies. I not only got first rank but also
received a University President’s Award. My anger with myself continued even after
I graduated, even though my parents were happy with my performance. I joined an
MBA programme in a reputed university, and again I topped the class. Then I started
feeling proud of my achievements.
I got job offers from the best companies with top-bracket salaries. But I opted to
be an entrepreneur despite opposition from my parents. I researched about success-
ful entrepreneurs and visited some of their business operations. In fact, I formed a
belief that an entrepreneur is superior to all as he/she creates a new organisation and
adds value to the economy and society. I used to argue with my friends, saying that
we should take risks and become billionaires and in a short span build a business
empire and become powerful.
Sometimes I used to think that my father was not as efficient as me as he thinks
from a narrow point of view, settling for a job career for a living and being satisfied
with what he used to have. I wanted to break this type of thinking. I argued with my
father and told straight to his face that he was not efficient. I thought, ‘I need to
venture now’, as my father never started a business when he was young. My father
used to get upset, and my mother used to defend my father. This situation still made
me angry with my mother too.
I didn’t know why I started becoming angry with my parents again, even though
they have been nice to me and also submissive to me. I started a major business
project involving a huge investment. I borrowed a huge amount of money from
Problem in Perspiration 37

banks. But this money was not sufficient when the project was in the final stage of
completion.
I used to argue with my parents regarding my investment despite the fact that
they gave me all the money they were saving for their retirement so I can build my
business.
I completed my project at last but with great difficulty. Trial production as well
as commercial production were successful. My parents’ joy was overwhelming,
whereas mine was different. I didn’t know why my behaviour took a ‘U’ turn after
I started this business venture. I thought it might be due to the work pressure, ten-
sion and stress that I had been experiencing.
I built supply chain systems, and everything was going on as I planned. I started
feeling proud of myself and feeling sorry for my parents as well as friends, who
opted for a job career with a fixed income.
As my project had been completed and my dreams had been realised, my parents
convinced me to marry. I agreed and got married. My parents got themselves
relieved from the agony and stress caused by my anger as my wife became the
absorber.
Later, I started looking at bigger business houses. My rivals got strategic advan-
tage due to the economies of scale over my company. I should say one thing. Despite
the success of my business, I couldn’t plough back profits due to heavy debt servic-
ing charges.
I was not happy with the size of my business as there were some businesses twice
and thrice the size of mine. Some companies have multiple portfolios. I planned and
implemented an expansion project and simultaneously a diversification project,
despite heavy resistance from my wife. This caused my being angry and restless
again as it needed heavy investment. Again, I started roaming around banks and
investment companies and going to friends and relatives. This time, the response of
all these stakeholders was not encouraging. However, with great struggle I com-
pleted the expansion as well as the diversification projects. I had a lot of content-
ment as I had recognition in the business world.
This happy stage couldn’t stay for long as I witnessed heavy pressure in debt
servicing, dwindling market opportunities and a growing market competition due to
increase in supply over demand. I was so much angry with my marketing people
during one staff meeting, but it ended up with the idea of approaching government
departments for orders through bribes. I couldn’t think that my idea would result in
unethical means at that point in time.
The finance staff member got orders, started manipulating accounts and per-
formed illegal as well as unethical acts. Of course our business situation improved
a lot, but my angry state of mind crossed the limits. I experienced a mental conflict
between my business and my values.
Finally, the Anti-corruption Squad of the government imposed heavy penalties. I
lost almost all of what I earned over the period. I couldn’t pay the penalty, and
ultimately my fortune took a ‘U’ turn. I was not only angry, but I also lost my com-
mon sense.
 Another Random Document on
Scribd Without Any Related Topics
 She stopped short suddenly; her underlip quivered, and she bit it
nervously with little, white teeth. She turned her back half towards
young Saunders, and he could see from her trembling that she was
on the verge of tears. He could only falter very earnestly:
“I am very sorry—very sorry.”
She did not speak again, and for some time they stood in silence,
she with her head drooping away from him and he watching her
eagerly. He knew she was waiting for him to go, and he was waiting
for her to turn to him again. He wanted to see her eyes, those eyes
which had flashed at him so wrathfully and then had become so
suddenly misty and piteous.
“Will you not at least tell me,” he said, “that you will pardon—
forgive me for—for my intrusion—”
“I am very unhappy,” she said, still with her face turned from him.
“I am not in condition to see any one—friends—strangers—any one.
You have made me so miserable I—I pray to the gods sometimes
that I might die.”
She slipped to the ground and buried her face in her arms on the
little stone shelf of the well.
Now, the young attaché was really a good-hearted boy, in spite of
his frivolity; and the sight of the little, sobbing figure touched him.
He stood in a confusion of discomfort and remorse, while strange
little waves and thrills of tender emotion swept over him and
rendered him still more helpless.
He was too stupid to comprehend the cause of the girl’s
wretchedness, and he was very young. Consequently, he actually
experienced a thrill of vague pleasure at the thought that in some
way his attractive personality was responsible for Hyacinth’s distress.
But while he stood hesitating and perspiring from sheer
excitement, he became suddenly conscious of the fact that some
one was coming from the house towards them. Aoi came hurriedly
across the grass. She paused a moment, startled at the sight of the
young foreigner in their private gardens. Then she saw the
crouching girl, and in a moment comprehended the situation.
Poor, simple, amiable Aoi! Possibly never in all her life before had
such violent feelings assailed her. She turned upon the intruder with
flashing eyes.
“You come here! You make my daughter weep! You are bad lot.
Leave my grounds or I will have you arrested!”
“Madame Aoi,” he protested, “I assure you that I meant no
offence, but—”
Hyacinth had slowly risen to her feet. She put her arm gently
about Aoi’s shoulder.
“Do not speak the words to him, mother,” she said, in Japanese.
“He did not mean to make me weep.”
Aoi was quieted in an instant. She still looked uncertainly,
however, at the stranger.
A sudden idea seemed to come to her mind. She went a hesitating
step nearer to Saunders and raised her face to his, while her eyes
searched his face. She said:
“You come to see me, august sir, or—or—my daughter?”
“Your—that is—”
He flushed uncomfortably, but indicated, with a slight nod of his
head, the young girl.
Aoi’s eyes narrowed curiously. Her trembling lips compressed
themselves into a stiff, rigid line. When she spoke her voice was
quite hoarse.
“In Japan,” she said, “a young man does not visit a maiden unless
he is her lover.”
Saunders swung his stick uneasily.
“I am an American,” he said, lamely.
 “Yes,” said Aoi. “You are American, and because that is so your
visit to my daughter is an insult.”
“No, I protest,” he said, warmly.
“You came for business?”
“No—but—”
“You came to make that love to her—yes—it is so?”
“Yes—but—er—”
Aoi stretched out her slim arm and pointed to the path leading to
the front of the house. The gesture could have but one meaning.
Young Saunders flushed angrily.
“This is a deuce of a way to take a fellow’s attentions,” he said,
half to himself. “Why, I declare, I meant no harm.”
Aoi smiled incredulously.
“I am old,” she said, slowly; and at her flushed, almost youthful,
face the young man smiled involuntarily. But she repeated her
words: “I am old with experience, Mister—sir—and because I was
the wife of an Englishman, I know from him the evil meant by such
attention as yours to a maiden of Japan.”
“But she is not Japanese,” he burst out; “I never for a moment
thought of her as such.”
His words staggered Aoi. In her zeal to protect the girl from the
overtures of this foreigner she had forgotten the facts of the girl’s
birth. She became agitated. Her hands fell helplessly to her knees as
she bent brokenly forward. With her head bowed, she spoke in a
plaintive voice:
“The humble one craves the pardon of the illustrious sir. But will
he not condescend to depart?”
Somewhat irritated and provoked, rather sulkily he turned towards
the path and slowly, unwillingly, left the garden.
 XVIII

A month and a half had gone by since the American attorney had
cabled to his client in Europe of the success of his mission. Richard
Lorrimer’s immediate response had been that he was leaving at once
for Japan. Any day now he might arrive in Sendai.
In the meanwhile, Aoi sought to comfort and strengthen the
despairing Hyacinth. She contrived to break up their retirement, and
sought to divert her mind by taking her out each day. The girl had
acquired a peculiar loathing and horror for the “white people,” of
whom the little town of Sendai had now quite a plague.
The women went about in hideous garments, with what appeared
to be heavy flower-baskets upon their heads. The men gazed at her
and made insinuating efforts to speak to her. Hyacinth was sure all
these foreigners carried knives, because they were constantly
chipping off pieces of the tombs and the temples. They were
sacrilegious beasts, she thought, who had not reverence even for
the dead. Everywhere in the city she found them. Sometimes they
were even on the heights of Matsushima, where they laughed and
talked in loud voices to one another under the very shadows of the
holy temples. She hated them all, she told herself. Most of all she
loathed this man who was said to be her father, who had broken her
mother’s heart and married a woman her mother despised, and who
now sought to drag her by force from those she loved.
Yet the visiting foreigners in Sendai possessed a more friendly
spirit towards her than she knew. Knowing her history, they were
prompted by pity and curiosity to seek an acquaintance, which was
always met by the darkest and haughtiest of frowns and disdainful
glances. When they addressed her, she stared stonily before her.
Once, when a too-curious woman persisted in annoying her with
numerous questions, Hyacinth had raised her voice suddenly and
shrieked to a score of little urchins playing in the street. In an
instant they had rushed into the road, whence they threw sticks and
mud at the indignant foreigner. Whereat Hyacinth had burst into a
wild peal of shrill, defiant laughter. Then she had rushed headlong
into the house, where she flung herself on the floor, giving vent to a
tempest of tears.
In these days she could not bear Aoi out of her sight, and even
old Mumè received an unusual share of affection. The thought of
leaving them caused her deep sorrow. The passage of the days
added not one whit to her resignation. If she must go, she would go
battling at every step. But, before the time should come, maybe the
gods would intervene, and she might die.
Strangely enough, in these days she forgot, or refused to
remember, all she had learned at the mission-house. Instead, she
would climb wearily the long way to one of the temples on the hill,
where she sought the old priest who kept the fire of the gods
perpetually burning, and bitterly she poured out at his feet all the
anguish of her heart.
She was a Japanese girl, she asserted—Japanese in thought, in
feeling, in heart, in soul. How could she leave her beloved home and
people to go away with these cold, white ones, whom she could
never, never learn to know or understand.
And the priest promised to give her counsel and help when the
time should come. From day to day he would admonish:
“A little longer—wait! The gods will find a way.”
But the days passed with more than natural speed of time. Then
came a telegram to Sendai. The lawyer, Mr. Knowles, brought it to
Aoi’s house. It was from Mr. Lorrimer. He had arrived in Tokyo. He
would start at once for Sendai.
 Then desperation seized upon Hyacinth. Unmindful of the
pleadings of Aoi, she besought the Yamashiro family for help.
Now, the Yamashiro family had always been ashamed of the fact
that Hyacinth was half English. They had more than once declared
that if she had been wholly so a union with their son would have
been an impossible thing. Consequently, Madame Yamashiro
received the young girl frigidly. She considered it both hoydenish and
rude for a girl to pay a visit to her betrothed’s parents alone. But the
moment Hyacinth began to speak, Madame Yamashiro became so
frightened that she trembled.
The girl, in a breath, told her of the discovery of her true
parentage. She implored Madame Yamashiro to hasten her marriage
with Yoshida, so that she might not be forced to leave Japan. For
could this foreign father then tear her from her husband? No, all the
laws of Japan would prevent him.
So rapid was her utterance that one word tripped against another.
In her agitation, Madame Yamashiro thought the girl insane. She
clapped her hands so loudly that half a dozen maidens came to
answer at once.
“The master!” she cried; and never had the Yamashiro servants
seen their mistress so perturbed.
Not a word did she speak to Hyacinth after that until her husband
and son entered the room; then faithfully she repeated the words of
the girl.
Like a little stupid animal the boy’s round face became vacant. He
stared at the girl out of a pair of small, amazed eyes. She tapped her
foot impatiently upon the floor, and then turned to the father, her
two little hands outstretched.
“Oh, good Yamashiro, will you not hasten this marriage? I am
ready, willing, to wed at once—to-day—this minute.”
“If it be true,” said Yamashiro, heavily, “that you are an Engleesh,
it is quite impossible. My son could not marry with such.”
 “But we are betrothed,” she cried, piteously. “Yamashiro Yoshida is
my affianced. Oh, you will not cast me off!”
She turned pitifully from one to the other. They were all quite
silent. Then she spoke to Yoshida. Her voice was clear and hard.
“You—Yoshida, you would not cast me off? You swore you adored
me. It is not my fault I am Engleesh. I am Japanese here.”
She placed her hands over her heart.
“If you will marry me,” she said, “I will be Japanese altogether.”
“My son,” said Yamashiro the elder, “will obey his father’s august
will in all things.”
The girl spoke slowly, scornfully.
“I make a fool of myself to come to you with such a request. I
would not marry you, Yoshida—no, not though the white people
killed me.”
Drawing the doors sharply behind her, Hyacinth left the house
unattended to the gate.
“Ah, what an escape we have had!” burst from Madame
Yamashiro.
Her husband scowled.
Yoshida slowly moved to the shoji and stared out dimly at the little
figure hurrying down the path.
 XIX

“Yamashiro Yoshida will not marry me. He has cast me off,”

Hyacinth told Aoi.
“And to-night,” said Aoi, helplessly, “the father will arrive.”
The girl pressed her hands tightly together. Aoi laid a timid,
comforting hand upon her shoulder.
“Little one,” she said, in a pleading voice, “pray thee to take cheer.
It is your duty to go to your father. You have not forgotten all I have
taught you. Filial submission to the parent is the most important of
all.”
“And have I not always shown such respect and devotion to you,
dear mother?”
“To me? Ah, yes, little one, and I would that I were, indeed, your
own mother.”
“You are, you are,” cried the girl, crushing down the sob that rose
in her throat, and then dashing her hand against her eyes. “Ah,” she
cried, “this is not time to weep. We must think—must think of some
way. Yamashiro has failed us. Ah! Who could have expected else?
They were always despicable.”
“Try and follow my counsel,” said Aoi; “accept the inevitable. The
father is coming; he is your rightful guardian. Bow to his will and
give him what affection you can.”
“I can give him not one grain of affection,” said the girl, bitterly.
“Did he not cast off my mother for that other woman? Ah, I have
heard all the story. What I could not understand that first day I have
learned since, and you also. Did you not tell me that my mother died
shuddering at his memory?”
Aoi sighed helplessly. The girl threw herself down on the floor,
and, resting her chin upon her hand, stared out before her at the
street without. There had been a little rain, and the bamboo trees
across the street were shining with the drops which had not yet
dried upon them.
Looking down the street, she could see the dim outline of the
country beyond, the cloud-shaped mountains, the sheen of the
water beneath. She turned back to Aoi, who had silently seated
herself beside her.
“Mother,” she said, “I am going away alone.”
“Alone! Ah, you make my heart stand still with fear.”
“Listen. All Matsushima is known to me, and the priests at the
temple are kind and love me. If I need food they will give it to me.
Do they not feed even the birds which alight upon their temples?”
“Oh, child, I cannot think what it is you contemplate.”
“I will not leave our Japan,” she cried, passionately. “It is the only
home I have known.”
“But what can you do?”
“I will hide,” said the girl.
“Ah, alas, you could not, for these foreigners are everywhere here.
They would find you.”
“Yet there are places among the tombs of Date of which they
know naught. Koma and I alone knew of them, and the good priest
of the temple Zuiganjii. There is one place—but I will not tell even
you.”
Aoi wrung her hands.
“Oh, daughter, they will seek everywhere for you till they find you.
You do not know the stubborn nature of these people.”
 “Ah, but I do, my mother, for that nature is in me, too. If they
seek stubbornly, I, too, can hide as well.”
Arising, she stood a moment, looking down thoughtfully upon Aoi.
“To-night,” she said, “they will come. There is little time to lose.
When they ask for me, you will say, ‘She feared to gaze upon the
augustness of her parent, and so fled.’ When they ask you, ‘Where
fled?’ you will say, ‘Only the gods know whither.’”
 XX

The great red sun had finished its day of travel and had dropped
deep into the waters far off in the gilded western sky. How very still
were the approaching shadows, how phantom-like they seemed to
creep, spreading, though they scarcely stirred. The glow of the sun
was still upon the land, reflecting the light on the dew-damped trees
and the upturned faces of the nameless flowers, which seemed to
raise their heads, hungry, as though loath to part with the light.
Not a sound was heard on Matsushima. The birds were voiceless,
the waters moved with a soundless motion, licking rather than
beating against the rocks, stirring lazily, as if in slumber.
Upon the silence there tenderly stole the gentle, mellow pealing of
a temple bell. Its even-song was soft and sweetly muffled, so that
one would have thought it came from afar off.
Hyacinth, heartsick and footsore, was weary when she reached
the bay. With a little cry she caught her breath, as for the first time
she looked about her, awakened from her apathy by the sudden tone
of the bell.
The light of day was disappearing. Already the hills up which she
must climb looked dark and in ghostly contrast to the still light and
shining bay. Yet the girl lingered on the shore, her hand shading her
eyes, watching yearningly the sunset. The beauty of the passing day
hurt her. She was in a condition to feel acutely. The temple bell had
ceased its song. With the departure of the sun, the silence seemed
more oppressive.
 Shuddering now, she looked up fearfully at the hills. Not since she
was a very little child had she visited these particular hills at night,
and even then she had not been alone.
Yet in those days she could have found her way blindfolded
among the rocks, stupendously projecting and facing the silent bay.
She had assured Aoi that she knew every inch of the land
hereabouts. Yet now, as she turned from the shore of the bay and
began to climb upward, she stumbled uncertainly. Her hands,
outstretched before her, revealed the fact that she was blindly
feeling her way, and wandering along paths she did not know.
“It will be all right soon,” she kept repeating to herself. “I am not
lost; only a little dazed, and I am tired—tired. Wait, I will find the
great rock soon, and then all will be well with me.”
She wandered about hither and thither in the darkness. Gigantic
rocks were about her on all sides, now shutting out the light of the
bay. Behind her the hills loomed up into enormous mountains, steep
and impenetrable.
The darkness about her, accentuated by the shadows of the rocks,
awed and terrified her. She raised her face appealingly to the sky.
Only one star shone out in its firmament, bright, soft, and luminous.
“It is becoming lighter,” she said. “Ah, will the moon never arise?”
And, as she spoke, the lazy moon crept upward beyond the black
mountains, a train of stars following in her wake. Her light was
bright, and reflected in a silver gleam upon the upturned face of
Hyacinth.
Light was all about her. The black shadows had evaporated like
the mist, and clean cut about her the familiar cliffs and rocks
outjutted, and the white tombs of the great feudal lords of Sendai
shone out like strange, un-earthly mirrors. She stood in their midst,
close by the deserted Zuiganjii. And the rock against which she
leaned grew suddenly white and dazzling. Gazing with awed,
wondering eyes upon it, she thought that some kindly goddess had
guided her wandering footsteps in the dark to the very refuge she
sought.
Yet she did not enter the cavern beneath, though she was weary.
She was watching, with reverential emotion, one of the phenomena
of nature. As she looked upward she knew that this sight would
bring that evening to Matsushima’s shore hundreds of banqueters,
for the Japanese never fail to celebrate the Milky Way. They call it
the Heavenly River, in which goddesses wash their robes in the
month of August.
Mechanically, and almost unconsciously, she climbed to the
surface of the rock. From her height she now looked down upon the
bay. Across the waters on the other shore the temples were
illuminated. The white sails of some fishing-boats were floating like
white birds gently swimming.
For a time she stood quietly on the great rock. The silence and
stillness of the night possessed her, and she became drowsy. She
stooped and touched the surface of the rock, and found that it was
covered with some soft moss.
“It is so dark inside,” she said, plaintively, “and I am so weary. The
gods will give me sleep without.”
In a little while her tired little body had relaxed its tension. She lay
there on the rock, upon her back, her arms stretched far out on
either side, like the wings of a bird, her face upturned to the white-
flecked sky.
Thus, among the tombs of the ancient lords of Sendai, upon the
very rock where the Date lords met to raise their voices in allegiance
to the religion of her ancestors, this little Caucasian maiden slept
alone.
 XXI

Madame Aoi was fluttering from room to room, her face anxious,
her whole being disturbed and agitated. Although she knew that the
expected guests might arrive at any minute, she could not remain
still a moment.
In and out of Hyacinth’s chamber she wandered, distracted, and
with the yearning pain of a mother wringing her heart. The little
room, with its dainty, pretty mattings, its exquisite panellings,
seemed to reflect the personality of the loved one who had left her
to bitter loneliness. Even the sunlight seemed less golden now that
she was gone, and the dressing-table, with its mirror, propped up by
a lacquer stick behind it, had a forlorn appearance.
Everything about the chamber, about the whole house, bore a
deserted aspect. Aoi was not one given to the indulgence of tears,
but her quiet pain was all the more acute. Her appealing face was
drawn and devoid of all color. The anguish of her heart was manifest
in her eyes and in her quivering lips.
Once she opened the panelling and looked for a moment within at
the clothes of the dead mother. She drew back the panel almost
sharply. The sight of those dumb, silent articles struck her with a
nameless horror. Woman-like, she recalled the face of the one to
whom they had belonged. Then she began to conjure up fancies of
what this mother would have desired her to do with her child. And
the face which returned to her memory seemed, somehow, to
reproach her with its sad and melancholy eyes.
 For the first time since she had adopted Hyacinth, poor, childish
Aoi began to doubt whether she had done right. Did not the little
one, after all, belong to these people? Was it not, therefore, wrong
to have kept her in ignorance of them, and permitted her to grow to
maidenhood after the fashion of a Japanese girl? This emotional
arraignment caused Aoi anguish.
Time now hung heavily upon her; the minutes seemed to creep.
She stared out at the graying sky, and wondered where the little one
was now. At that moment Hyacinth had halted in her pilgrimage on
the shore of the bay to gaze upon the same sunset, wistfully,
yearningly.
The sight of the fading day aroused a fear in the breast of the
watching Aoi. She sprang to her feet, smoothed her gown with
hasty, trembling hands, and moved towards the street door.
She would go to the mission-house people and tell her story. They
might assist her, advise her what course to pursue. They had always
taken deep interest in the little one. Perhaps they, too, loved her. Oh,
if anything should happen to her, out there in the darkness of the
hills!
Aoi had hardly reached the foot of the little spiral stairs when
there were sharp rappings upon the door. With her hand pressed
tight to her fluttering heart, she hastened forward. Without waiting
for the slow Mumè to answer the summons, she pushed the door
aside.
Then she stood still, dumbly, on the threshold. The next instant
Komazawa had seized her in his arms and was covering her face
with kisses. Against her son’s breast she began to sob in a helpless,
hopeless fashion, piteous to see.
He, with his arm close about her, comforted softly, and then
turning to the strangers who were with him, he said, quietly:
“You see my unexpected arrival has upset my mother. You must
excuse the welcome. But, come, let us enter.”
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