SB 7.7.32

hariḥ sarveṣu bhūteṣu
bhagavān āsta īśvaraḥ
iti bhūtāni manasā
kāmais taiḥ sādhu mānayet

hariḥ—the Supreme Personality of Godhead; sarveṣu—in all; bhūteṣu—living entities; bhagavān—the supreme personality; āste—is situated; īśvaraḥ—the supreme controller; iti—thus; bhūtāni—all living entities; manasā—by such understanding; kāmaiḥ—by desires; taiḥ—those; sādhu mānayet—one should highly esteem.

One should always remember the Supreme Personality of Godhead in His localized representation as the Paramātmā, who is situated in the core of every living entity's heart. Thus one should offer respect to every living entity according to that living entity's position or manifestation.

Hariḥ sarveṣu bhūteṣu. This statement is sometimes misunderstood by unscrupulous persons who wrongly conclude that because Hari, the Supreme Personality of Godhead, is situated in every living entity, every living entity is therefore Hari. Such foolish persons do not distinguish between the ātmā and the Paramātmā, who are situated in every body. The ātma is the living entity, and the Paramātmā is the Supreme Personality of Godhead. The individual living entity, however, is different from the Paramātmā, the Supreme Lord. Therefore hariḥ sarveṣu bhūteṣu means that Hari is situated as Paramātmā, not as ātmā, although ātmā is a part of Paramātmā. Offering respect to every living entity means offering respect to the Paramātmā situated in every living entity. One should not misunderstand every living entity to be the Paramātmā. Sometimes unscrupulous persons designate a living entity as daridra-nārāyaṇa, svāmī-nārāyaṇa, this Nārāyaṇa or that Nārāyaṇa. One should clearly understand that although Nārāyaṇa is situated in the core of the heart of every living entity, the living entity never becomes Nārāyaṇa.