Arthaśāstra and Corporate Strategy: From Mauryan Governance to Modern Boardrooms

Abstract

Purpose: The Arthaśāstra of Kautilya, written over two millennia ago, remains one of the most comprehensive treatises on governance, economics, and strategic management. Far beyond its relevance to the Mauryan Empire, it presents timeless insights that resonate with contemporary corporate strategy. This paper explores the parallels between Kautilya’s principles of statecraft and the frameworks employed in modern management. The emphasis is on how concepts such as dandanīti (rule of law), mandala theory (alliances and rivalries), and arthashakti (economic strength) can be adapted to corporate governance, stakeholder management, and competitive positioning. Additionally, Kautilya’s strategic foresight in risk assessment, contingency planning, and long-term sustainability is compared with modern business practices such as scenario planning, SWOT analysis, and corporate social responsibility.

Methodology: In this paper, the exploratory qualitative research method is used. The relevant information is collected using keyword-based search in Google search engine, Google Scholar search engine, and AI-driven GPTs. This information is analysed and interpreted as per the objectives of the paper.

Analysis/Results: The fusion of ancient wisdom and modern management demonstrated how Kautilya’s timeless principles extended beyond their historical context to remain relevant in contemporary practice. His insights into statecraft, strategy, and ethics offered lessons in organizational governance, competitive positioning, and sustainable growth. By integrating these values with present-day management theories, businesses could balance profit with responsibility, efficiency with ethics, and innovation with stability. This convergence not only validated the universality of Kautilya’s thought but also served as a practical roadmap for companies striving to stay competitive while maintaining accountability to society and future generations.

Originality/Values: By analysing Kautilya’s multidimensional view of power—economic, political, and ethical—this study argues that the Arthaśāstra offers not only a historical framework but also a forward-looking model for resilient leadership in dynamic business environments. The paper concludes that integrating Kautilya’s insights into corporate strategy can help modern leaders balance profit with prudence, ethics with expediency, and competition with collaboration, thereby providing a unique synthesis of ancient wisdom and contemporary managerial practice.

Type of paper: Qualitative Exploratory Research Paper.