PURPORT

In this verse the word sarva-bhutatma-bhutam is very significant. Isvarah sarva-bhutanam hrd-dese 'rjuna tisthati: the Lord is equally situated in the core of everyone's heart. Thus He cannot be envious of anyone or friendly to anyone; for Him everyone is the same. Although He is sometimes seen to punish someone, this is exactly like a father's punishing his child for the child's welfare. The Supreme Lord's punishment is also a manifestation of the Lord's equality. Therefore the Lord is described as prasantam sama-darsanam. Although the Lord has to execute His will properly, He is equipoised in all circumstances. He is equally disposed toward everyone.