Premium Essay

Do Big Companies Abuse There Power ?

In: Business and Management

Submitted By amitans12
Words 1572
Pages 7
Question #1
Using an Internet news search, find an example of a business that has abused its power and encountered the wrath of social interest groups or the government. Using content, concepts, and class discussion points from chapters 1 – 3, introduce and discuss the situation and the current state. Conduct a stakeholder analysis and make recommendations for an improved outcome, using the same resources. Support your discussion with evidence from reputable resources, as well as content and concepts from the text.

ANSWER
I was overwhelmed while doing the internet news search to find an example of business that has abused its power. The search came up with so many examples that it made me realize that probably all the business abuse their position in some or the other way. There were many example to choose from but I chose “Corporate accounting scandal at Satyam “, which is also infamously called as India’s Enron. The reason why I selected this particular company is that I had my cousin brothers and sisters working for this company and this scandal affected our families in a big way.
The background
Scandals are like an iceberg, they represent the only visible catastrophic failure. Saytam Computers was founded By Mr. Ramalinga Raju who hailed form a traditional agriculture family of Andhra Pradesh, India in 1987 with a just 20 employees and converted the company got Public in 1992.The chairman of the company was the founder himself, Mr. Ramalinga Raju (Alias Raju) until January 7, 2009 when he resigned from the board of directors after admitting to corporate fraud. (Author HT correspondent, April, 9, 2015). The company offered consulting and information technology services to the various business sectors. The company had services in 66 countries and 53000 employees in 6 continents. It was listed on Bombay stock exchange, NSE & NYSE.
The scam
Ironically,

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