Modern corporate finance is largely driven by the principle of Shareholders’ Wealth Maximization (SWM), which focuses on increasing the market value of a firm’s equity. However, this objective often invites criticism for encouraging short-termism and ethical compromises. The Indian Indigenous Knowledge System (IKS), with its roots in ancient philosophies and holistic worldview, offers a balanced framework that integrates wealth creation with ethics, sustainability, and social responsibility. This research paper explores how the values embedded in IKS—such as dharma (righteousness), artha (prosperity), and lokasangraha (welfare of all)—can redefine and augment the principle of SWM to create long-term sustainable value. Through a mix of conceptual exploration and case analysis, this paper proposes an IKS-inspired model for ethical wealth maximization.
Krishnamurthy et al. (Sun,) studied this question.