Ancient Fiscal Ethics and Ethical Entrepreneurship: A Manusmṛiti-Based Analysis of Lending Practices, Banking Regulation, and Cross-Border Ad Valorem Taxation

Abstract

This study explores the foundations of fiscal ethics and ethical entrepreneurship within the framework of classical Indian Knowledge Systems (IKS) with particular reference to lending norms, regulation of interest, banking oversight, contractual integrity, and cross-border ad valorem taxation as articulated in the Manusmṛiti. It demonstrates how principles of transparency, proportional taxation, financial discipline, and moral accountability embedded in this ancient juridical text resonate with contemporary models of financial governance and regulatory ethics.The Hindu concept of dharma is clarified as the rule of moral duty and moral responsibility of action for a person depending on their stage of life or a Sanskrit term that describes the responsibilities of practitioners of commerce and householders (as Vaiśya Dharma) that assists individuals and businesses in their ethical instant choice decision-making of entrepreneurship. The Dharmic Business Ethics model applies to most aspects of business including entrepreneurship, finance, human resources, marketing, trade, and foreign trade, conflict resolution—as such, the moral instructions elucidated in the Manusmriti and more specifically-developed into dharmic principles to provide a practical component of business ethics. The current study argues that employing and building on ideas from Vedic wisdom of ethical responsibility into modern business skills offers guidance to Indian entrepreneurs with role modelling, or theory of mind, of dharma toward equity in lending (money), possession (property), asset ownership, banking, marketing activities, wage equity, and foreign trade.