October 24, 2009

For Machiavelli….

The following in my side of the post during a debate on the topic : " Business Dharma - Gandhian or Machiavellian" : Comments are most welcome!

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Gandhian principles apply only to idealists and people who want to invent excuses for not getting things done. Machiavellian principles are practical and pertinent to modern day businesses more than before due to the increasing nature of cut throat competition and the difficulty in accomplishing goals. Business Dharma is considered to be time variant and it is indeed a miracle that what Machiavelli taught many centuries ago finds its applicability through political psychology in modern day business decision making.


It should be clarified that Machiavelli did not profess anything that was immoral or advocated evil. He encouraged the use of politics for the purpose of achieving greater good. For him, the End justified the means. Today’s businesses run with the sole purpose of producing profits and achieving growth. This is what is described by Machiavelli as the “necessities of naked self interest”. When businesses run for creating value for their stakeholders, where does Social responsibility factor in? It is of least interest when the definition of businesses is growth and profits. Machiavellian leanings are on nature of human beings and how power is maintained. Synergies and alliances are the order of the day as businesses evolve around the globe. Dharma in life professes taking a neutral stand when It comes to getting involved in a conflict, but Machiavelli again has a practical insight when he says that a side should always be chosen because if you do not take a side, on the side of the vanquished you are the prey of the victor and on the side of the victor you are a doubtful friend. Modern executives have to do everything in their hands to maintain and enhance their power alliances this way and this is a great lesson in conflict management.


His take on mergers and acquisitions is a choice between being feared and loved. He advocates being feared if drilled down to a choice. To quote him, a leader should employ the strength of the lion and the cunning of a fox and that it is best for a leader to be both feared and loved; but since this usually cannot be done, it is safer to be feared


When choosing enemies and friends, Machiavelli suggests exploring the power terrain to decide actions that might antagonize factions of different levels. This is vis-à-vis being the good man to the entire world, which is again engrained in Utopia.


Machiavelli implored Realism as against Idealism as suggested by Gandhi. Corporations that have been immensely successful find no need to take in to account the personal morality of all their employees when they resort to an action for the general good of their employees. Machiavelli proposed just a set of tactical moves which enabled achieving the end goal easily. This is a far better course of action rather on lofting on principles and not getting anything done.

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