From Mythology to Boardrooms: The Ethical Compass in Business
By Dr Vinay Patel, Lecturer in Business, LSST Elephant & Castle and Dr Rashi Bansal, Course Coordinator (L3&4) and Lecturer in Business, LSST Elephant & Castle
“Business without ethics is a recipe for chaos, eroding confidence and collapsing system” (Sharma 2019, p. 18).
Our early days in the stock market, when we first dipped our toes into investing in the 1990s, were shaped by the meteoric rise and catastrophic fall of Harshad Mehta. A charismatic Indian stockbroker, Mehta was famously dubbed the “Big Bull” of the Indian markets for his aggressive investment strategies and his influence over investors nationwide. His astonishing ascent inspired countless followers – us included.
Yet behind the glitter of his success lay a foundation of fraudulent practices: manipulative trades, inflated stock prices, and the illicit siphoning of bank funds. Fuelled by unrestrained greed, the Big Bull amassed unimaginable wealth, only to meet inevitable ruin. Mehta’s relentless desire to rise echoes the myth of Icarus, who, intoxicated by ambition, flew too close to the sun and fell to his doom. Such myths, present in all cultures, remind us that unchecked desire leads not to triumph but to destruction. Very early in our investing journey, we learned a profound truth: excessive greed invites inevitable downfall. This lesson resonates across all dimensions of life—personal, professional, business, and social.
Richard T. DeGeorge (2011, p. 13) defines business ethics as the analysis of moral principles and their application to business practices. As Crane and Matten (2007, p. 7) observe, these principles extend to every facet of business conduct, from leadership and employee relations to environmental responsibility. The ultimate aim is to confront and resolve ethical dilemmas inherent in commerce. Ethics, as a branch of philosophy, concerns itself with morality, values, and human conduct. Philosophy, in turn, has long drawn upon mythology, sharing its exploration of existence, morality, and human nature.
This blog endeavours to illuminate the relationship between mythology, philosophy, and business ethics. It considers how mythological narratives continue to inspire and shape ethical practices within the modern business world—a journey that stretches from ancient myths to contemporary boardrooms.
In antiquity, myths served as frameworks to explain natural phenomena, human behaviour, and the origins of life. Over time, these narratives evolved into philosophy, offering enduring insights into morality, values, and existence. Mythology aids philosophers in grappling with abstract concepts, many of which find resonance in business ethics—a subdiscipline of philosophy that engages with honesty, leadership, responsibility, corporate social responsibility, and justice.
Both Eastern and Western mythologies provide enduring foundations for ethical principles. This blog seeks to draw parallels between mythological lessons and real-world business practices. By examining case studies from across the globe—instances that have impacted us directly or indirectly—we aim to highlight how the ethical messages embedded in myths continue to guide decision-making in business boardrooms today.
Enron was once a celebrated energy company in the United States. Until 2001, it enjoyed the favour of Wall Street traders and was hailed as an exemplar of corporate success. Yet beneath this façade lay a culture of deception. Kenneth Lay, the CEO, and Andrew Fastow, the CFO, employed accounting loopholes, off-the-book partnerships, and other manipulative strategies to conceal billions of dollars in debt from failed deals while artificially inflating profits. For a time, these tactics created an illusion of prosperity.
The illusion eventually collapsed. Enron was forced to file for bankruptcy, erasing billions of dollars in shareholder value and destroying approximately 85,000 jobs. It remains one of the most infamous corporate scandals in history—a stark reminder of the consequences of greed and dishonesty in business.
A strikingly similar case emerged in 2009 with Satyam, an Indian IT firm founded by Ramalinga Raju. Like Enron, Satyam became a cautionary tale of corporate manipulation, where fabricated accounts and fraudulent practices shattered investor trust and damaged the reputation of one of India’s leading technology companies.
They inflated profits by using fake invoices, forged bank statements and imaginary clients. The inflated profits were in billions of dollars. Both cases recall the Norse myth of Loki. Raju, Lay and Fastow’s manipulations align with the manipulation of Loki with other gods of Ragnarok, leading to the loss of the treasure. All such manipulations are punished but no one addresses the losses of the shareholders.
Vijay Mallya’s Kingfisher Airlines offers a stark study in the dangers of unchecked greed. Launched in 2005, the airline quickly spiralled into financial ruin, amassing debts of thousands of crores of Indian rupees by 2012. Behind the glamorous image, the company understated losses, over-invoiced services, and diverted funds abroad. The fallout was severe: huge losses for banks and the collapse of 4,000 jobs.
A parallel story unfolded in the United States with Wells Fargo. In its pursuit of inflated profits, the bank imposed unrealistic sales targets, rallying its employees with the slogan “Eight is Great”—urging every customer to buy at least eight services. This pressure drove employees to forge signatures, mislead customers, and create millions of unauthorised deposit and credit card accounts between 2011 and 2016. When the scandal surfaced, Wells Fargo was fined billions of dollars and dismissed 5,300 employees.
Both Kingfisher and Wells Fargo mirror the myth of King Midas, whose wish that everything he touched turn to gold soon proved disastrous when even his daughter, food, and water were transformed. Unlike Midas, who realised his folly and renounced the gift, these corporations failed to heed the moral lesson: unchecked greed corrodes value, trust, and sustainability.
The pharmaceutical industry also offers striking examples. In the early 2000s, Ranbaxy, one of India’s major pharmaceutical exporters to the United States, obtained licences on the basis of falsified clinical trials and supplied substandard medicines. Intended to save lives, these drugs were produced with impure ingredients, deceiving regulators and endangering patients. Though heavily fined, the damage to public trust and human health was immeasurable.
A similar case was Theranos, the Silicon Valley start-up that promised to revolutionise blood testing with a device requiring only a single drop of blood. Attracting millions in investment, the company ultimately failed to deliver, producing dangerously inaccurate results and jeopardising lives.
Ranbaxy and Theranos both faced an ethical crossroads akin to Arjuna’s dilemma in the great battle of Kurukshetra, as told in the Mahabharata. Arjuna, guided by Lord Krishna’s counsel in the Bhagavad Gita, chose the righteous path. The companies, however, chose deception over integrity. The Gita—a timeless charter for ethical conduct—teaches the importance of performing one’s duty with integrity, detachment from selfish outcomes, and commitment to righteousness. In business, this translates into prioritising ethical practices over short-term gains achieved through unethical means.
Lord Krishna, the central guide in the Bhagavad Gita, embodies diplomacy, leadership, and principled decision-making—qualities that remain as relevant to boardrooms today as they were on the battlefield of Kurukshetra. His lessons illuminate the righteous path for individuals and organisations alike, showing that true success rests not in greed-driven victories but in sustainable, ethical practices that build lasting trust and respect.
सुखदुःखे समे कृत्वा लाभालाभौ जयाजयौ ।
ततो युद्धाय युज्यस्व नैवं पापमवाप्स्यसि ॥
Sukha-duhkhe same krtva labhalabhau jayajayau
Tato yuddhaya yujyasva naivam papam avapsyasi
Bhagvad Gita 2.38
Having made pleasure and pain, gain and loss, victory and defeat the same, engage in battle for the sake of duty; thus, you shall not incur sin.” (Easwaran p. 91).
This shloka signifies the performance of proper and true actions and cautions against the greed-driven, unethical and illegal actions.
The Indian tradition of narrating mythological tales to children—often by grandparents – has long served as a subtle yet profound means of nurturing ethical conduct for the future. These stories, rich in symbolism and moral guidance, remain relevant today as we grapple with questions of integrity and responsibility in business and leadership.
Chanakya Niti, propounded by the renowned strategist Chanakya, emphasises that wealth should be acquired through just and fair means. It further asserts that a leader must be both judicious and shrewd in serving the interests of their people. This principle resonates with global mythology: the Greek myth of Prometheus, who defied the gods to bring fire to humanity, and the Norse tale of Odin, who sacrificed an eye at the Well of Urd to obtain wisdom for humankind. Each illustrates the paradox of sacrifice, responsibility, and foresight that underpins ethical leadership.
Similarly, the Panchatantra, Aesop’s Fables, and the Arabian Nights are not mere tales of amusement but repositories of ethical wisdom. They remind us that leadership is not confined to power and profit, but also to prudence, compassion, and accountability. In contemporary terms, these stories align with the principles underpinning corporate social responsibility (CSR), stakeholder trust, and ethical governance.
For today’s executives and entrepreneurs, mythology offers more than allegory – it serves as a mirror. Myths caution us against hubris and greed, while encouraging foresight, empathy, and balance. They urge us to consider not only the tangible outcomes of our decisions but also the enduring legacies they create.
Myths are not mere folklore; they are ethical compasses, urging leaders to value trust over triumph and responsibility over recklessness. They remain a perennial source of moral insight, guiding decisions across generations and cultures.
The case studies explored, viewed through the lens of myth, have shaped my journey as both an investor and an individual. They taught me to pursue not only profit but also trust, integrity, and sustainability. As young investors in navigating volatile markets, we discovered an enduring truth: profit without principle is nothing more than illusion.
Imagine Midas seated in your boardroom, his golden touch tempting reckless shortcuts, or Icarus soaring toward unchecked ambition. These myths still speak to us, warning of the dangers of hubris and unrestrained desire. The choice, ultimately, is ours.
For our part, we have chosen to root our investments in conscience. The returns may be modest, but they have shielded us from the ruin that follows greed. It is time we collectively redefine success—not as the accumulation of wealth alone, but as the cultivation of trust, the practice of integrity, and the creation of businesses that endure with dignity.
References
Crane, Andrew, and Dirk Matten. Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press, 2007.
DeGeorge, Richard T. Business Ethics. 7th ed., Pearson, 2011.
Easwaran, E. The Bhagwad Gita. Trans. E. Easwaan. Tomales, CA: Nilgiri Press, 2007.
Hamilton, Edith. Mythology: Timeless Tales of Gods and Heroes. Back Bay Books, 1998.
Radhakrishnan, S., and Charles A. Moore, editors. A Source Book in Indian Philosophy. Princeton University Press, 1957.
Sharma, Arvind. Corporate Governance and Business Ethics in India. New Delhi: Sage Publications, 2019.
Websites
www.aithor.com/essay-examples/case-studies-of-notorious-unethical-business-practices
www.digitaldefynd.com/IQ/biggest-business-scandals/
www.ethicsunwrapped.utexas.edu/case-studies
www.investopedia.com/financial-edge/0113/5-most-publicized-ethics-violations-by-ceos.aspx
www.researchgate.net/publication/330881348_Ethical_Issues_in_Business-A_Case_Study_of_Selected_Firms