A Prolegomenon to Business Epistemology

11 min readApr 21, 2020

ABSTRACT:

Business Ethics has been a buzzword in the later-half of the twentieth century. The ethos and moral principles have been devised for business-familial or professional. Ethical theories have been applied to the domain of Business the core value of which is Integrity. In Indian context, Dharma is regarded as the foundation of Artha, Accordingly, the concept of “Dharmika Management” or Value-laden Management has been envisaged at least for the last five decades and strongly pursued in the post-LPG (Liberalization, Privatization and Globalization) period. The point is that full-fledged development of Business Ethics can be seen in the field of knowledge. Different types of case-studies refer to different kinds of moral dilemmas of humankind functioning differently at different levels across the world. However, the backbone of Ethics is Epistemology and Business Epistemology is the field which is totally overlooked. To begin with, an attempt is made, here, to decipher the tenets of Business Epistemology. Its definition, nature, scope, function, classification, problems and limits can be enunciated. Accordingly, the first part of the paper explains what Epistemology in general, is and what is, Business Epistemology, in particular. The second part discusses the key-issue i.e. the problem of sources of knowledge. The third part is concerned with other epistemological issues the fourth part suggests various possibilities of developing the same and challenges which may be faced, in doing so. The concluding part suggests the possibility of developing Business Aesthetics or Business Axiology on similar lines. The strength of this endeavor lies in its novelty.

KEY-WORDS:

Epistemology

Sense-Perception

Inference, Reason, Intellect

Authority/Testimony

Intuition

Feminist Epistemology

INTRODUCTION:

Business Ethics has been the integral part of Management. With the addition of Corporate Social Responsibility (CSR), it has become the household name. It is a full-fledged branch of Applied Ethics. Even if Business Ethics is much discussed, debated, practised to the maximum possible extent, the possibility of Business Epistemology is never taken into Consideration. Actually, Epistemology is more important and fundamental than Ethics. So, let me elaborate on what Epistemology is.

Epistemology, in simple words, is the theory of human knowledge. Etymologically, ‘episteme’ means Knowledge and ‘Logos’ means the study or rational discussion. So, Epistemology is the study, theory, viewpoint, doctrine, ism, dogma concerning knowledge. It is a branch of Philosophy having paramount significance as the other important branches like Ethics and Aesthetics are based on nothing but Epistemology. It is concerned with the problems such as

What is Knowledge? How can it be defined?

What are different ways of knowing?

Is Memory a source of knowledge?

How is the validity of knowledge ascertained? Is it intrinsic or extrinsic?

Now can knowledge be classified?

What are the uses of knowledge? Theoretical or practical?

Can there be an array of Business Epistemologies?

What are the limits of human knowledge?

Let us consider these questions one by one.

Knowledge is defined in various ways but primarily, it is “True Justified Belief’”. The definition brings out the following three aspects of knowledge:

It is, basically, a belief

It is, as a matter of fact, true

It is justified i.e. it has evidence in its support

On this background, if we turn to the Business, what we observe is that various stakeholders like consumers, customers, retailors, distributors, manufacturers, producers work on their own beliefs and at most of the times, these are true. These beliefs are supported by substantial evidence and are neither loose opinions nor orthodox dogmas. Gettier does not find this tripartite Platonic model of knowledge to be satisfactory and his dissatisfaction can also have resonances in Business.[i]

The central question debated in Epistemology is — How do we have these beliefs? Or “How do we get knowledge?” Technically speaking, ‘What are the sources of knowledge? E.g. How do we know that ‘Two plus two make four’, or ‘Hamlet is authored by Shakespeare’ or ‘This is red’, or ‘CSR, at present, is 2%’ ,or ‘Virtue has its own reward’ or ‘Honesty is the best policy’ and, most importantly, ‘God is Great’, How do we know different aspects of Business such as Finance, HR, Marketing or Sales or Disaster Management? A variety of answers are possible and can be defended on different grounds. All answers ultimately boil down to our own experience of the world and the way we understand, cognize our sense-data through rationality. That is how history of Philosophy witnesses two major schools viz., Rationalism and Empiricism. The former maintains that Reason is the source of knowledge. Right from Plato, the position is maintained and human ability to attain knowledge is attributed to the rational faculty. Descartes, Spinoza and Leibnitz are known for rationalism. Levi-Strauss and Chomsky are contemporary rationalists. Repudiating their rationalistic ideas, Locke, Berkeley and Hume, on the other hand, maintain Empiricism. Rationalists hold that each human being is born with certain “INNATE IDEAS” imprinted on soul. So, some are born-businessmen in the sense their knowledge is inborn whereas others believe that it is acquired. Empiricists deny the contention of Rationalistic notion of innate ideas holding that at birth our mind is like ‘Tabula Rasa’ or the wax-tablet /clean slate on which that gets written what is acquired through experience. Thus, our knowledge, according to empiricists, arises out of experience. In that case, a Million-dollar question is- “Can Business be known a-priori or a-posteriori?” i.e. is the knowledge prior or posterior to experience?

Moreover, are reason and experience the only sources of knowledge? Authority- Human or Divine- is also an important source of knowledge. We have trust in human testimony and faith in the Divinity. So, moral, religious and spiritual lessons are received from the Authority. The words used may be written or spoken but these words do impart knowledge. Human testimony is fallible or, to put it differently, to err is human, but the Divine Testimony is not so. It is infallible. Whether written or heard, the Divine Testimony or ‘Faith and Revelation’ are regarded as the means of knowledge. We know the role which can be played by priests, monks and religious authorities in moulding the business and if business has nothing to do with religion, the role of human testimony cannot be underestimated. A simple sentence like “The boss can never be wrong” brings out the power of Authority in Business. However, Authority need not have to be understood hierarchically. At times, the power-centre and the source of knowledge can be Middle if not lower-level Management.

However, it has been pointed out by the critics that the Authority or Testimony is not an independent source of knowledge. Let us consider the process of acquiring knowledge by Authority. It consists in reading or listening to the word written or uttered by the Authority. To put it differently, it is nothing but receiving the data by senses and interpreting, understanding, assimilating, integrating its meaning through reason. Hence, there is no need to accept the third separate, independent kind of source. So, usually. Sense-Perception (Pratyaksha) and Reason or Intellect, or Inference (Anumana) are regarded as primary sources of knowledge and all other sources are reduced to these two. In Indian Philosophy, we have Carvaka-Darshana which accepts Pratyaksha as the only Pramana[ii](source of knowledge) while Vaisheshika school accepts Pratyaksha as well as Anumana[iii] . Samkhya-Yoga Darshanas hold the third independent source called ‘Aptavachana’[iv] or ‘Agama’[v]respectively i.e. ‘Testimony’ or ‘Authorty’ to which Nyaya-Darshana adds one more viz, Upamana.

Let us consider ‘Upamana’ as a source of knowledge. It is nothing but knowing a term and its denotation[vi]. It involves Perception, Inference as well as Authority. E. g We are told by the Authority that “Saxophone is a musical organ which is like a U-shaped trumpet.”[vii] We might have never been exposed to Saxophone but we remember the words of the trustworthy person and we are familiar with the trumpet. Now, when we happen to see a U-shaped trumpet (and know the same by Perception), we recollect the words of the Authority and infer that it must be a Saxophone. This is Knowledge by Upamana in the Nyaya system of Indian Philosophy. The cases where Upamana, precisely in this sense, are applied in Business will not be uncommon.

Mimamsa-system of Indian Philosophy too accepts Upamana but its understanding is different and relevant while developing Business Epistemology. It emphasizes the knowledge of the similarity of the objects perceived in the past and the present. We might have observed a business-reality in the past and the present may make us to see its resemblance with the past. This is a typical case of Upamana in the context of Mimamsa.

There are two more sources of knowledge accepted in Purva and Uttara-Mimamsa viz., Arthapatti and Anupalabdhi. Arthapatti is postulation. At times, the phenomenon at hand, cannot be explained unless a hypothesis is postulated. A queer or unusual phenomenon takes place for which no ordinary explanation is possible. E.g. Our ordinary expectation is that every employee must be present in the office. But there may be a few whose attendance is not recorded for months but they are working efficiently. How can we explain their absence? It is by postulating the idea that they are the ones who “work from home”. No business is possible without postulation or implication. It is a kind of inference which goes close to assumptions, presumptions, presuppositions.The subtle differences in these can be brought out but it is not the issue at present. The point, in focus, is that Business invariably involves Postulation called Arthapatti. To quote C.D. Sharma,

“It is the assumption of an unperceived fact in order to reconcile two apparently inconsistent perceived facts.”[viii]

Lastly, Non- availability, called Anupalabdhi,[ix] is a kind of knowledge. The inventory-manager may notice the absence or non-availability of a particular material. It is the absence which is conspicuously the source of knowledge! Hence, it is treated as an independent kind of source rather than reducing it to perception and inference.

A hotly debated issue in Epistemology is whether Memory is a source of knowledge or not. In Nyaya-Darshana, it is not accepted as a source of valid knowledge as it is only representative and not presentative. In other words, by memory, we are acquainted with the past and the recollected past is different from the present. In the domain of Business, it needs to be ascertained whether Memory is a source of valid knowledge or not. At times, it will yield knowledge and other times, a source of invalid knowledge.

III

Let us consider the next question- “How is the validity of knowledge ascertained-intrinsically or extrinsically?” Scriptures like Vedas are said to have validity in themselves. Business, obviously, cannot contain the validity in-itself. It is to be tested taking into consideration the external conditions. The former view is called “Svatahpramanyavada” (theory of Intrinsic validity) and the latter is called “Paratahpramanyavada” (theory of extrinsic validity)

The next question that crops up is concerning the classification of knowledge. Of course, knowledge is classified on the basis of the sources of knowledge and we have three different classes- Perceptual (Adhyaksheeya), Inferential or Logical or Rational (Tarkika) and Athoritative(Shabdika). However, when applied in Business, it is the blending if not synthesis of all the three. According to philosophers like S. Radhakrishnan, Iqbal, Tagore, Bergson, we have the INTUITIVE faculty because of which synthesis is possible. No doubt, it is the Integrated Vision or holistic perspective with which the business is carried out. According to Dr. Sarvapalli Radhakrishnan,

“Intuition is the experience which devout souls have in moments of spiritual exaltation or religious devotion”[x]

and the glimpses of such experiences are enjoyed by all whether it is the understanding of a business-process or not. A particular solution occurs, like a flash, and illuminates everything the essence of which is oneness.

It is possible to develop Business Epistemology highlighting the distinction between Para-Vidya (The Highest Knowledge) and Apara-Vidya. (The lower type of knowledge) The former is Transcendent and Spiritual whereas the latter is empirical. The purpose of seeking the former is nothing but Liberation and of the latter is to know the empirical world. Depending on the purpose of business, which is often profit-driven, the knowledge-orientation of all stakeholders can be decided, upto a certain extent, by the organization. A particular organization may emphasise Dharma (in the sense of Righteousness or Duty or Virtue) or Artha, or all Purusharthas, or Abhudaya (the worldly progress) or Lokasamgraha. The remarkable feature of Indian Epistemology is that in accordance with its assimilative character, it accommodates all purposes stated above.

Lastly, and most importantly, what is the purpose of epistemological pursuits? As stated above, it can be out of spiritual inclinations. Moksha-centric attitude, though rare is not unseen in Business. Epistemology, here, is viewed as a means to attain Liberation. On similar lines, Business Epistemology may be undertaken as a step towards Self-Realization. The other possible reason is for its own sake. ‘Knowledge for its own sake” is a well-established position in Philosophy and as the saying goes, “Virtue has its own reward”, knowledge has its own reward. Theorization is important in itself irrespective of its utility, serviceability and use. But this cannot be the only position. There are other views emphasizing its utility especially in Business. Business Epistemology enlightens all stakeholders and enhances their level of awareness which brings out the qualitative change in their business dealings. But this is the indirect impact. The direct bearing it has on Business is that besides broadening our sense of business, it sharpens analytic skills, improves negotiation-skills and induces self-awareness perhaps infusing Spirituality-at least the sensitization that Business and Spirituality are not as remote as these appear to be. The point is that Business Epistemology is to be developed for various reasons some of which are cited above.

A totally different view of Business Epistemology is possible from Feminist standpoint. As women said to be lightening half of the sky, their Epistemological concerns and ideas may be radically different from men. So far, their voice was unheard. In all domains, we find that women are invisible and Epistemology is not an exception. While developing the idea of Business Epistemology, it must be remembered that the Feminist Perspective can give a different turn with highlighting a different ethos for Business! The possibility of development of subaltern epistemologies can also be taken into consideration. In that case, the challenge while doing business, is to assimilate the idea of diverse epistemologies and to continue with one’s own either by refuting or by ignoring or by accepting their tenets.

In conclusion, let me present a novel idea of Business Aesthetics. Graphics, Designing and Advertising consider not only what is good but also what is beautiful. Aesthetics, like Ethics, is a normative science dealing with Beauty while Ethics deals with Goodness. What is Beauty and Beautiful, can it be captured in words, is it effable, if ineffable, is its ineffability due to Divinity, is the idea of beauty natural or supernatural, how is it known, with what parameters can it be judged are a few questions relevant in Aesthetics. If these are directed towards, Business, there may be a substantial addition to the field of knowledge. Similarly, Business Axiology can be developed underlining the values cherished by a business organization. But it is just a suggestion and not contention of the present article. Let me share with you the limit of this article. Epistemologists do specify the limits of our knowledge. Locke, e.g., is concerned with the problem of the extent of human knowledge. Even in Business, whether studied epistemologically or aesthetically, there will be innumerable aspects unknown (and perhaps unknowable) which may be specified, if possible. Similarly, in the article, there is no mention of theories of Error called “Khyativada” which is, actually, elaborated at length in Indian Philosophy. In all Business transactions, there is the room for errors. How can such errors be viewed? Various theories are propounded which explain the errors as genuine or not so. The point is that Epistemological excursions and explorations can bring out fresh insights into Business. I hope, you have liked this novel endeavor to present a Prolegomena to Business Epistemology.

A Prolegomenon to Business Epistemology

Written by Sharmila Virkar