Sati and Hiri-Ottappa : A Buddhist Integrated Internal Control Mechanism for Sustainable Good Governance in Educational Institutions

Abstract

This study aims to: 1) conduct a comparative analysis of the effectiveness of internal control mechanisms based on "Sati and Hiri-Ottappa (Moral Shame and Moral Dread)" and external regulatory controls within educational institutions; and 2) propose strategic guidelines for cultivating sustainable good governance through mental development processes for school administrators. This study employs documentary analysis and a synthesis of Buddhist administrative principles integrated with the international internal control standard, the COSO Framework. The findings reveal that external regulatory mechanisms possess inherent limitations regarding scope and temporal constraints, often failing to govern volition or underlying intentions of administrators in ethically ambiguous situations. In contrast, the practice of Sati functions as a real-time internal monitoring system that effectively mitigates information asymmetry and moral hazard. When Sati operates in synergy with Hiri-Ottappa, it establishes an internalized Police mechanism, fostering self-regulation that is more resilient and sustainable than legal sanctions alone. Furthermore, the study proposes a three-tier implementation framework: 1) applying Sati-based practices in administrative decision-making processes; 2) institutionalizing a culture of Hiri-Ottappa through ethical leadership modeling; and 3) developing a Kalayanamitra (Noble Friendship) supervision system to promote transparency from the inside out. Policy recommendations suggest integrating meditative practices and mental development into the core competency requirements for educational leadership training to ensure authentic and enduring institutional integrity.