Volume eleven of the
Arthashastra deals with the conduct of
corporations – and with their relationship to the sovereign.
Though Kautilya uses the word corporation in the sense of
corporations of independent fighting men; it could equally be applied to our modern public sector corporations. In any case, our latter day “corporate warriors” might be interested to learn that the earliest corporations were indeed corporations of fighting men and not business corporations! (Though they carried on both trade and agriculture; they made a livelihood from wielding weapons.)
Kautilya says that the help of corporations is better than the acquisition of an army, an ally, or profits. By means of conciliation and gifts, the king should secure and enjoy the services of such corporations as are favorably disposed towards him.
Kautilya says that corporations can serve only one master – in the person of the king. Under the protection of a single sovereign, the corporations should guard themselves against all kinds of treachery. But where the corporations are opposed to him, the king should put them down by sowing the seeds of dissension among them. The king may achieve this by providing help to the minority party or faction (within the corporation) with men and money and setting them against the majority party or faction.
As regards the chief of the corporation (the chief executive officer?!), he should endear himself to the people by leading a virtuous life, controlling his passions, and by pursuing that course of action which is liked by all those who are his followers.