‘Dharma is interconnectedness’: Why Sridhar Vembu thinks smart people lose out when chasing status

In a recent reflection shared on X (formerly Twitter), Zoho co-founder and its chief scientist, Sridhar Vembu has offered a sharp critique of the recent trend of modern status competition and its corrosive, but quiet, effects on individuals, businesses, and society at large.

“Smart people should not get trapped in status competition,” Vembu wrote in a philosophical vein, thereby setting the stage for a broader reflection on how individual’s pursuit of prestige—often masked as progress—can ultimately derail meaningful achievement.

He argues that status-seeking is not just a personal distraction but a systemic force that diverts energy away from real service, genuine connection, and lasting value.

Drawing from observations of urban life, Vembu pointed out how class segregation—especially among high-income individuals—has become more prominent in contemporary society. Unlike in earlier times when social circles were influenced by community, culture, or geography, today’s networks often revolve around income levels. “Segregation by income class is far more common than ever before,” he noted, especially in urban centres where class trumps caste in determining social interaction.

According to Vembu, this results in a subtle but powerful shift in our mental orientation. “This redirects our mental energy towards status competition,” he wrote. He offered a simple yet telling contrast: it’s easier today to envy a neighbour’s holiday in Italy than to remain aware of the financial struggles of a former teacher or distant relative. In Vembu’s view, the disconnection is not just social but ethical. “Dharma is this interconnectedness,” he stated, implying that economic advancement should not come at the cost of compassion or community.

In business terms, Vembu warns that prestige can be a distraction from profitability and purpose. “Prestige is the enemy of progress. In business, prestige is the enemy of profit. In public life, prestige is the enemy of service,” he wrote. In many ways, these lines reflect a theme consistent in Vembu’s public statements: a belief in first principles, frugality, and a grounded approach to leadership and entrepreneurship.

In fact, we can say that Vembu’s critique and reflection on the nature of entrepreneurship in today’s competitive world stands out because of his refusal to rely on idealism or nostalgia. Instead, Vembu draws attention to how even well-meaning, educated individuals can get caught in a loop of comparison and validation. The loss, he suggests, is not just personal well-being but the erosion of social ties and the capacity to serve others.

By linking status competition to a deeper disconnect from societal obligations, Vembu invites his audience to reconsider what success truly means—and at what cost it is pursued.