Today, we were discussing on principles and rules when one of our friends sent a video clip on WhatsApp, which was a part of an interesting episode from Business Sutra by Devdutt Pattnaik. When it comes to navigating life, we often rely on principles and rules to guide us. But what exactly is the difference between the two?

A principle is a fundamental truth or proposition that serves as the foundation for a system of belief or behavior. It is a guiding concept that informs our decisions and actions. A principle internally motivates you to do the things that seem good and right. For example, the principle of honesty dictates that we should always tell the truth, even if it is difficult or uncomfortable.

Principles are broad, fundamental beliefs or values that guide our actions and decisions. They are often rooted in personal or societal beliefs and may be open to interpretation. For example, the principle of fairness may guide our decision-making in a variety of situations, but what is considered fair may vary from person to person.

On the other hand, a rule is a specific directive that outlines what we should or should not do in a given situation. Rules are often created to enforce principles or to ensure that everyone is operating within the same framework. For example, a workplace might have a rule that employees must wear business attire, even though the principle behind this rule is professionalism.

Rules are often created by authority figures or organizations, and are intended to be followed without question. For example, traffic laws are rules that dictate how we should drive on the road.

People develop principles by living with people with principles and seeing the real benefits of such a life. A rule externally compels you, through force, threat or punishment, to do the things someone else has deemed good or right. People follow or break rules.

While principles and rules may seem interchangeable, there are some key differences between the two. Principles are more abstract and open to interpretation, while rules are concrete and specific. Principles are also more flexible, as they can be applied to a variety of situations, while rules are often rigid and inflexible.

While rules can be helpful in providing structure and consistency, they can also be limiting. They may not account for every possible scenario and can sometimes lead to rigid thinking. Principles, on the other hand, allow for more flexibility and creativity in decision-making.

So, which is better: principles or rules? The answer is that it depends on the situation. In some cases, following a set of rules may be necessary to ensure safety or maintain order. In other cases, relying on principles may allow for more nuanced decision-making and a better outcome.

Principles act as a guide to action while rules represent specific instructions based on the principles. Rules are means of establishing unambiguous decision-making method. If you need to take decision based on judgement, then it should be guided by principles.  Our dharma is our principle while the parampara or tradition is our rules. Every family or a clan has traditions or set of rules which may be different or distinct from one another, but the underlying principle or the dharma is the same.

That being said, both principles and rules play an important role in our lives. Principles provide us with a moral compass and help us make ethical decisions, while rules create structure and order in our daily lives.

A history of rigorous and aggressive regime leads to spiraling development of rules-based system because success on the part of the authorities increases the propensity to create more rules. In every authoritarian regime, rules take precedence and principles are often forgotten or ignored.

Rules-based system provides detailed guidance and clarification and precise answers to questions. However, it reduces or eliminates the exercise of judgment and lead to de-skilling by requiring a ‘tick-box’ mentality, at the expense of judgment and a real understanding. It also causes complexity and delay in keeping abreast of change. It’s delusory to think that rules can totally eliminate the need for judgment. Most of the audit failures arose through lack of judgment rather than non-compliance with rules.

Neither rules-based approach nor principles-based approach can prevent dishonest practice. Often, rules provide a vehicle for circumventing the intention of the approach and the process. Nevertheless, the principles-only approach may present enforcement difficulties because they provide insufficient structure as a basis for ensuring ‘compliance’.

Since our childhood, we are made conditioned to rules through the process of education and training and then we continue to look for the rule as the starting point in answering a problem. Every parent, guardian, or teacher hopes that their kids or students will comply with and follow rules, even sometimes at the cost of their judgment. The principle that it’s best to do what others need you to do in a situation covers that.

In the pursuit of truth and fairness, we shall continuously evolve, otherwise our principles and rules may become irrelevant with the passage of time or may not remain that fair as they should be. I prefer a dynamic rule-based system built on the foundation of fundamental principles and not a rigid, dogmatic, static, conservative rule-based system.

Rules are not necessarily sacred, principles are.

Franklin D Roosevelt

Ultimately, the key is to strike a balance between principles and rules. By understanding the differences between the two and knowing when to apply each one, we can make better decisions and lead more fulfilling lives. Our approach should be an appropriate mixture of principles and rules, which encourages the spirit of the guidance to be complied with and does not undermine the exercise of judgment.