As the highest purusartha, ‘dharma’ represented the cosmic law operating in the natural, moral and religious phenomena. Dharma was defined in terms of certain duties and obligations which were codified in the great sastras within the social order. 

Dharma is closely connected with the principle of good or ‘punya’. Good is the principle closely associated with ‘dharma’. Nothing is considered greater or higher than ‘dharma’ in this world. Brihadaranyaka Upanishad considered dharma as the ‘sreya’ or good. Therefore ‘adharma’ means the opposite of good or evil. It has been prescribed that one must follow ‘dharma’ in order to attain ‘moksha’ or salvation. 

Dharma Sastras consider that dharma represents the principle of law and order. The ancient Indian legislation and the theory of punishment solely depended upon the principle of ‘dharma’. ‘Dharmarajya’ was the name given to the country which observed law and order. Manusmriti enjoined the king as the repository of all ‘dharma’ and responsible for maintaining the order of law and for ensuring that all his subjects live by the law of dharma. Thus the rules according to ‘dharma’ not only included legal justice but also social justice.