The Concept of Dharma
During the period of the  aryo-dravidian synthesis (1200 to 700 b.c) the fundamental values of  the Vedic System became fused, and were translated into the concept  of Dharma, on which the structure of the Indian culture was built. 
The concept did not emerge from a  single seer but was the product of creative thinking of generations  of dedicated men who presided over ashrams. The aim of the rishis,  disciples living in the ashrams was to live according to Rita as  preached in the Vedic ages. 
India was then a continent of  heterogeneous tribes. The ashram was faced with two problems in the  aim of ‘aryanising’ all. One, was how to bring about some  cohesion between the tribes to bring in them a collective  consciousness? Two, was to create a social structure that would  encourage people to sink their differences and live up to the  fundamental values of Dharma. 
The inmates of the ashrams who  underwent this discipline were called Brahmins. They were bound by  their devotion to the Vedas. As the movement radiating from the  ashrams grew in strength, norms of conduct and social institutions a  way of life evolved with the intent of facilitating the pursuit of  Dharma. 
The Vedic culture had as its central  idea, Rita, the cosmic order which operated in moral, spiritual and  social planes. From it flows Satya - accord between thought,  word, deed that could translate Rita in life, Yagna – complete  dedication of one cherished things to Higher powers to fulfill Rita,  Tapas - exercising control over body and mind. The Highest  Good was to conform to Rita by pursuit of Satya, Yagna and Tapas. 
With the progress of time these  three concepts were accepted as parts of Dharma. The human being who  wants to live a truthful life has to develop a spirit of dedication  (yagna) and self-control (tapas). The man who wants to lead a  dedicated life could not do so without developing truth (satya) and  self-control. That is how each value came to embrace the contents of  all three.
Tapas in its original sense  signified self-control but came to comprise truth and non-violence. The spirit of a non-violent India has originated from this  concept. The spirit of Bhakti originated from Tapas. When  a human being exercises self-control over his mind and body, there is  a conservation of energy. When this energy gathers strength it  releases the energy of love .
So Dharma came to symbolize  steadfastness, self-mastery, control of sense and anger,  charity,  learning truth, non-violence, and bhakti; and the absence of malign  and hatred.
In its primary sense, Dharma was the  Cosmic Order which upheld the whole creation. In its secondary sense,  Dharma meant pursuit of the Highest Good by living in conformity with  the Cosmic Order. Dharma believed that man was not the creature of  environments but a meeting point of hereditary, environmental, moral  and spiritual forces operating through a series of lives. By pursuing  Dharma, one could alter the course of his future and current lives. 
The Law of Moral Causation, an  aspect of the Cosmic Order is universal for eg if truth is realized  lasting achievements will follow (i.e. short cuts to success or  achieving it by unfair means is not a passport to long-term success),  if sexual waste is controlled vigor will follow, if non-violence is  realized love will follow and so on.
Another aspect of the Cosmic Order  is the Law of Karma which governs the journey of a man’s  soul from one life to another. This is not fatalism. By internal  change and action a human being can change his conditions. According  to this law, when we are born we bring with us associations of  actions of our previous birth.  Also, actions of our current birth  would affect our lives in the next birth. It is only acts that are  inspired by desires that attract consequences. If our acts are not  inspired by desire, they attract no consequences. The chain of cause  and effect is thus broken, and the personality is integrated and the  soul finds self-realization.
Let me tell you a short story on  how the fatalism, destiny has been accepted blindly by the weak and  ignorant. Devi Lal, a farmer from haryana  was told by God that he  would live till the age of eighty. At the age of forty his village  got flooded as the Yamuna river was overflowing. The village had to  be evacuated. On days one, two and three the people of the rescue  boat asked Devi Lal to accompany them but he refused on the premise  that there was no way he could die since God had promised him a life  of eighty. Due to heavy rains he was forced to move to the higher  floors of his house at the end of each day. On day four, there was no  higher floor for him to go, so he drowned and died. When he reached  heaven, he asked God why he died when he was promised a life of  eighty. God said, “you fool, I sent three boats to rescue you but  you refused to take them. Surely I could not come down and rescue  you.” 
What this proves is that unless a  man uses his own intellect, his condition cannot improve.
Manava Dharma 
The way of life dominated by Dharma  had definite spiritual aims and purposes. It is shortly referred to  as Manava Dharma, held in great veneration by many and believed to be  framed by Manu. 
Manu Smriti has been the source of  inspiration of the later dharma shashtras composed during the last  two thousand years. It has provided a framework within which numerous  tribes have, over the centuries, led a cohesive life without losing  their autonomy. It has given our society social and religious life,  continuity and vitality enabling most Indians to survive the  catastrophe that foreign invasions brought along. 
My mind goes back to what Allana  Iqbal had to say “There is something about the entity of our  civilization that has defied destruction despite persistent onslaught  by its enemies over centuries.” 
The basic concept of Manava Dharma  is that if Dharma is pursued earnestly by an individual, it  influences not only his present and future lives but social and  material enviorments as well. 
According  to Manava Dharma, women  as wives and mothers have a respected place as guardians of the  family, the norms of conduct on which the unity and stability of the  family rests. Their role is very important as their fall from grace  is a precursor to social chaos and cultural decadence. It is they who  hold the family together, listen to the outbursts of other members in  silence, love their children without expecting anything in return. I  cannot imagine home without Ma and so wouldn’t millions of us.  Women are in no way inferior to men. Having said that, God has  blessed  them with many functions, traits and capabilities that are  applicable to them only. Those cannot be changed. Moksha is as open  to them as it is to men. 
Leadership of the Dedicated Class 
Caste System: origins and  reasons. In order to reach the Highest Good, the leadership of  society had to be a disciplined one. Life had to be dedicated to the  studying and the teaching of the Vedas without any lust for wealth or  power. Such was to be the life of a Brahmin. He was to dedicate his  life to society, and dharma. He was respected for his knowledge,  spirit of sacrifice and character. A Brahman who did not meet these  qualifications was looked down upon. He was shunned and  ex-communicated.While he was not subject to an extreme penalty, he  was to live a life that was worse than others.  It is akin to the  situation of a sick man who does not die 
Modern World has been swearing by  Equality of Men
The hard reality is that different  people are blessed with different intellects, temperaments, and all  men are not the same. Division of society into groups based on common  vocation, or interest is common. Recognizing difference in  temperaments, those possessing aspirations were Brahmins, those  possessing energy with the urge to purify were Kshatriyas, those  possessing energy without aspirations were Vaishyas and those  possesing inertia were Shudras. The Kshatriyas and Vaishyas received  education in the Brahman’s house but could not do the duties  allotted to Brahmans. A Kshatriya was the protector and the upholder  of Dharma. The Vaishya was the producer and distributor of wealth. A  Shudra could serve the Brahman, follow arts and crafts, enter the  army and when in distress follow the vocation of the Vaishya. He  could not study the Vedas but could study the Puranas, Epics. 
So society accorded a place to each  group based on the duties and functions that it could perform best. 
Today the backward classes amongst  others are critical of the caste system and Manu Smriti. While I  empathize with their plight are those from other communities not  poor. Former Chief Minister of Maharashtra, Manohar Joshi is believed  to have come to Mumbai virtually penniless. If a member of the  backward class  can become a distinguished member of the country’s  foreign service and be its President, can’t others attempt to even  reach half way? 
When two children of the same  parents can have different intellects so too can people of the same  country.
To understand the social philosophy  we must try and remove certain ideas that have been ingrained into  our minds. Manava Dharma ruled out a competitive society because such  a society has a tendency to stimulate egotism, greed, and untruth. On  the other hand, by following the competitive model, there is no  equality either. Insecurity, frustration, tension, heart-attacks,  blood-pressure follow. In a competitive society, the strong -willed  prosper while the poor – willed are pushed back, their minds filled  with envy and anger. 
Some of you might argue, that if  there is no competition, how do we decide admission into medical  colleges, or employees getting increments?, Competition brings out  the best in individuals. Competition is a part of modern society but  it is our approach to it that determines our state of mind. If we  were to enter an examination hall worried about how tough the paper  would be or start worrying about the results after appearing we are  bound to get stressed. On the other hand if our approach was to study  hard, give it our best shot and leave the rest to Ishwar, we would be  so much happier. 
Manav Dharma takes into account the  biological fact that every person is likely to inherit the traits and  aptitudes of his parents. Family association would make it easier for  the child to uphold family traditions and values. Working with a  community spirit leads to a greater degree of cooperation. If one’s  duties are clearly laid down the scope for greed, self-indulgence,  and  ego is reduced. 
Some of you might argue  how this  system would work in the globalised economy and in mega corporations  like General Electric or Unilever. We must realize that Manu Smiriti  was written thousands of years of ago. What was relevant then might  not be wholly relevant today. But the concept of joint effort,  cooperation, different traits in human beings are as relevant today  as they were then. 
Summary 
Creation is the outcome of the  Cosmic Order. Rita or Dharma upholds and governs all that is. It  operates on all planes, material, ethical and spiritual. 
One can live in conformity with the  Cosmic Order only through developing Satya, Yagna and Tapas.
Efforts by an individual to attain  the Highest Good, not only brings changes in the individual but also  in the social and material environments in this and subsequent lives. 
Two important aspects of the Cosmic  Order are the Law of Moral Causation and the Law of Karma. 
Dharma in its social aspect of  Manava Dharma must so regulate society that traditions, norms of  conduct make it easy for individuals to attain the Highest Good. To  achieve this, the society must be organised on a non-competitive  basis. 
Also read
1. K M Munshi - Forgotten visionary  of India's cultural renaissance
2. Debunking the Aryan Invasion  Theory
3. Demystifying Caste
4. Different parts of India  contributed to its religious life
5. FAQ Karma
6. Why are Backward Classes in India  backward?
7. What is Dharma