...https://www.youtube.com/watch?v=bauzUSu2v5k http://www.thehindu.com/specials/timelines/satyam-scandal-who-what-and-when/article7084878.ece http://cbi.nic.in/fromarchives/satyam/satyam.php http://www.dnaindia.com/money/report-all-that-you-need-to-know-about-the-satyam-scam-2067138 https://en.wikipedia.org/wiki/Satyam_scandal http://www.hindustantimes.com/business/satyam-scam-all-you-need-to-know-about-india-s-biggest-accounting-fraud/story-YTfHTZy9K6NvsW8PxIEEYL.html http://www.business-standard.com/article/economy-policy/in-case-of-satyam-issue-is-not-just-about-money-but-biz-ethics-109051100040_1.html http://rammallar.blogspot.in/2013/04/satyam-scam-is-it-failure-of-business.html http://www.termpaperwarehouse.com/essay-on/Satyam-Scam-And-Ethics/198522 http://www.researchgate.net/publication/271133751_CORPORATE_ACCOUNTING_SCANDAL_AT_SATYAM_A_CASE_STUDY_OF_INDIA'S_ENRON (point 5) http://www.scirp.org/journal/PaperDownload.aspx?paperID=30220 https://www.scribd.com/doc/73590653/Satyam-Fraud-Ethical-Corporate-Governance (page 9 onwards imp) http://knowledge.wharton.upenn.edu/article/scandal-at-satyam-truth-lies-and-corporate-governance/ The Satyam Computer Services scandal is a corporate scandal that worked in India in 2009 where chairman Ramalinga Raju confessed that the company's accounts had been falsified. The Global corporate community was shocked and scandalised when the chairman of Satyam, Ramalinga Raju resigned on 7 January 2009 and confessed that he had manipulated the accounts...
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... Introduction: 2 Ethical Issues Involved 2 1. Not Following Corporate Governance Norms 2 2. Tampering the financial data - 2 3. Misleading the Shareholders Fund- 3 4. Insider trading at Satyam- 4 Ethical Dilemma faced by Ramalinga Raju 4 Theories and Approaches that may be used to resolve dilemma 5 Hosmer’s Six Step Process: 5 Kohlberg Model: 6 Recommendations for Resolving the dilemma 8 Conclusion 9 References 9 Introduction: The Satyam Computer Services’ scandal brought to light the importance of ethics and its relevance to corporate culture. The fraud committed by the founders of satyam is a testament to the fact that “the science of conduct” is swayed in large by human greed, ambition, and hunger for power, money, fame and glory. Scandals to the recent financial crisis have time and again proven that there is a need for good conduct based on strong ethics. we examine the gross negligence of stakeholder concerns and over indulgence of key management on a personal and organizational level in immortal practices for personal benefit. We also assess the implications of ethics in the business environment. We then delve into the ethical dilemmas faced by the executives at Satyam, apply Hosmer’s framework to moral decision-making and suggest alternatives to handle such moral uncertainties. Finally, we conclude by providing recommendations for ethical code of conduct in organizat...
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...Running head: ETHICAL ISSUES IN SATYAM SCAM 1 A Study of Ethical Issues in Satyam Scam Haresh M Patel (Roll No.2234) B.K.School of Business Management (Evening Programme) Ethical Issues in Satyam Scam Abstract “Reputation is an idle and most false imposition: oft got without merit, and lost without deserving”. Failed institutions, including Lehman Brothers, Enron and Satyam, would stand a testimony to this affray in a post-mortem analysis. This paper discusses corporate ethical issues involved in ‘Satyam Scam’ from a compliance perspective. It makes a distinction between legal and ethical compliance mechanisms and also shows that the legal compliance mechanism has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in 2 dealing with fraudulent practices and may not be addressing the real and fundamental issues that inspire ethical behavior. The focus of the virtues in governance is to establish a series of practical responses which depend on the consistent application of core values and principles as well as commitment to ethical business practice. In my opinion, No one makes it to the top ranks of corporate management without a healthy amount of self-assurance. Confidence underlies decisive, strong leadership, but does overconfidence lead...
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...The below are the requirements for term paper. 1)Title 2)Object 3)Review(2 articles) 4)Analysis 5)conclusion 6)Source(References) http://www.businessweek.com/blogs/globespotting/archives/2009/01/satyam_scandal.html The terror attacks on Mumbai were just a tremor for the country’s tech industry compared to the shocks coming from the Satyam scandal. Earlier today, Ramalinga Raju, Satyam’s founder and longtime chairman, admitted in a letter to the board that he had been cooking the books for years to make up for revenue and profit shortfalls. Read the details in this report by my BW colleague, Manjeet Kripalani. In his letter, Raju wrote that the cover-up finally got the best of him: “It was like riding a tiger, not knowing how to get off without being eaten.” This admission will have a crippling impact on Satyam. Its chances of getting new business are nil. Don’t expect its current customers to abandon the company overnight. That’s not easy in a tech services business where the operations of the client and service provider are so interwoven. On the other hand, it’s possible that the company may collapse financially, in which case clients will have no choice but to flee. Which brings us to a bigger shock: This betrayal of trust could have a major impact on the entire Indian tech services industry. The industry has spent 20 years building up credibility with Western clients, but this disaster will make many US and European clients rethink their reliance on Indian outsourcing...
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...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
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...are capable of extraordinary things and that the key to this is creating highly charged teams. He takes a personal interest in developing teams and leaders and invests significant time as a faculty in Wipro’s leadership development programs. Premji is firmly committed to the belief that business organizations have deep social responsibility, and such responsibility shall be discharged by conducting ethical and fair business, by involvement with community issues and by building an ecologically sustainable business. It’s that kind of integrity that has catapulted Premji and Wipro to unprecedented heights. On the other hand the problems that cropped in another IT services provider in global level is the Satyam Computer Services Ltd. It is stamped as Indian Enron because of the new scam that surfaced in the recent past. The investors shocked at the news that is published in the print media and also broadcasted in the electronic media and it is a big blow on the spirits of the investors...
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...Fraud –Sathyam computers SUBMITTED BY: Abhijith Rajan AUD 2351 MBA (GENERAL) ABSTRACT From Satyam, we can see that corporate book keeping misrepresentation is a noteworthy issue that is raising both in its recurrence and seriousness. Exploration confirmation has demonstrated that these developing number of fakes have made undermined the trustworthiness of monetary reports, added to generous financial misfortunes, and disintegrated speculators' certainty with respect to the handiness and dependability of money related articulations. The expanding rate of these sort of law violations need to get hardened punishments, excellent disciplines, and powerful requirement of law with the right soul. An endeavor is made to inspect and investigate inside and out the Satyam Computer's "inventive bookkeeping" embarrassment, which conveyed to spotlight the significance of "morals and corporate administration" (CG). The extortion submitted by the authors of Satyam in 2009, is a demonstration of the way that "the art of behavior is influenced in huge by human eagerness, aspiration, and crave influence, cash, acclaim and wonderfulness". Dissimilar to Enron, which sank because of "organization" issue, Satyam was conveyed to its knee because of "burrowing" impact. The Satyam embarrassment highlights the significance of securities laws and CG in "developing" markets. Without a doubt, Satyam misrepresentation "prodded the administration of India to fix the CG standards to anticipate repeat...
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...Mahindra Satyam, formerly known as Satyam Service Company Limited, is one of the successful global business and information technology services company. This company handles industry and functional expertise relating to technology, and provides clients the best services to improve business processes and their performances. B Rama Raju, and Ramalinga Raju founded Mahindra Satyam in 1987, and is headquartered in Hyderabad, India, for providing software development and Consultancy services to large corporations. (Mahindra Satyam) Mahindra Satyam operates globally including the US, Canada, Brazil, United Kingdom, China, Singapore, Malaysia, and also many Fortune 500 companies. That being said Mahindra Satyam provides services at General Electric, General Motors, Nestle, and the US government. This company serves automotive products, aviation, farm equipment, hospitality, information technology, real estate and the retail industries. Three main segments that the company operates are IT services, Business Process Outsourcing (BPO), and Software Products. (Mahindra Satyam) The IT service provides wide variety of services, including software development, system maintenance, packaged software integration, and engineering design services. Whereas, BPO segment provides services related to Human resource, finance and accounting, and transaction processing. Lastly, Software Products segment provides involves product development, and creation of software. http://www.mahindrasatyam.com/about-mahindra-satyam/ICT-company...
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...paper is to do a case analysis of Satyam computer Services present the key facts of the paper, identify the main issue that management had and theorize a solution to the main issue. Key Facts Satyam Computer Services Limited was an indispensable part of Indian IT Industry. The company was the fourth biggest software company in India, which was founded by Mr. B. Ramalinga Raju. Raju started his career as an entrepreneur after obtain degrees in commerce and a Master of Business Administration in Ohio University America and he later became the Founder-Chairman of Satyam Computer Services. Listed on both the Indian stock exchange and the New York Stock Exchange. The company had major global US and Australia companies as clients. Over 20 years, Satyam was stating employing 53,000 people with operations in 66 locations world wide. Satyam Computers lost its brand image on January 8, 2009 when Mr Raju who had resigned earlier as CEO announced to the Indian stock exchange that financial fraud had been committed to the tune of over US$1 billion dollars over a number of years. He said that he was trying to cover up losses that the company had. In latter court proceedings prosecutors alleged that Satyam had 13,000 fictionist employees and these salaries were being siphoned off to front companies and two family owned companies to fund land purchases. Mr Raju brother was a managing director. Management Problem. Corporate geed was at the heart of Satyams’ problem led by Mr Raju whose unethical...
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...Eshon Howard Bus 339 Marketing Research Hard Body Research Plan Victor Olufeso Introduction The Hard Body Haulers is a local moving company that is not experiencing consistent growth in revenue. The company was founded in 2008 and is located in Cleveland, Ohio; one of the fastest shrinking cities in terms of population in the United States (http://quickfacts.census.gov/qfd/states/39/3916000.html, 2006). This along with the high number of home foreclosures in the area indicates that people in the area are relocating to other dwellings. In contrast, the level of people unemployed in the area indicate that people do not have the discretionary resources available to them to hire a mover and are instead utilizing do it yourself alternatives (http://www.cleveland.com/datacentral/index.ssf, 2011). Moving costs are expensive to consumers in a recessive economy. Much of the cost of that the moving companies incur are fixed costs in the form of equipment such as vehicle maintenance, packaging supplies, and lifting equipment. Secondly, there is a high cost insurance and licensing requirements that every moving company must have in order to be in compliance with the State of Ohio (http://www.puco.ohio.gov/puco/, 2011). The availability of the moving company can also increase the costs considering that most moving companies are busiest on the last ten days of the month (Cohn, 2010). Finally, moving can be a very time consuming process. So moving companies generally charge on an hourly...
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...background Satyam Computers Services Limited (SCSL) was incorporated in the year 1987 as a private limited company at Andra Pradesh. Later at 1991 Satyam recognized as a public limited company. SCSL is fourth largest provider of Information Technology services in India. In the year 1995 company awarded ISO 9001 certification. Twenty years ago, Satyam has consistently innovated across various aspects of the enterprise-processes, technology, business and engagement models, and service offerings. Satyam offers a range of expertise that includes: Software Development Services, Embedded Systems, Engineering Services (CAD/CAM/CAE), Systems Integration, Enterprise Resource Planning Solutions, Enterprise Application Integration, Customer Relationship Management, Supply Chain Management, Product Development, Electronic Commerce, and Consulting. As IT services became more and more technology-centric and generic, hence now Satyam offers services to enhance the customers business needs. Satyam starting with deeper focus on customized IT solution on insurance, financial services, telecom, manufacturing, transportation, health care, Bioinformatics and Retail sectors. 2 Satyam Computer Services – a company based in India (now known as Mahindra Satyam). This is the most recent scandal (declared only in 2009) among those on this list. The accounting fraud in this case involves overstating cash ($1.5 billion) and receivables by $100 million and understating liabilities by $250 million. Taken...
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...Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and British Telecom plc in 1986 under the name of ‘Mahindra British Telecom’. Later, the name was changed to ‘Tech Mahindra’, to reflect the diversification and growth of the client base and the increased breadth of our service offerings. With Satyam acquisition, Tech Mahindra is well positioned to be a leader in the broader IT services space, serving a wide array of industry verticals like banking and financial services, manufacturing, energy and utilities in addition to telecom Tech Mahindra is part of the US $14.4 billion Mahindra Group, in partnership with British Telecommunications plc (BT), one of the world’s leading communications service providers. Focused primarily on the telecommunications industry, Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently expanded its IT portfolio by acquiring the leading global business and information technology services company, Mahindra Satyam (earlier known as Satyam Computer Services). Tech Mahindra’s capabilities spread across a broad spectrum, including Business Support Systems (BSS), Operations Support Systems (OSS), Network Design & Engineering, Next Generation Networks, Mobility Solutions, Security consulting and Testing. The solutions portfolio includes Consulting, Application Development & Management, Network Services, Solution Integration, Product Engineering...
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...Satyam Computers Limited-A case of corporate fraud. Overview: Satyam Computer Services (an IT company) is considered India’s Enron. The company CEO Mr. Raju was the main person involved. In the end, he admitted to faking company profit for numerous years and was arrested for 1.47 billion dollars in fraud. Fraudulent acts: Mr. Raju worked with the internal auditors to come up with ways to create non-existent profits and eliminate debt. For instance, he had fake bank accounts on paper in order to report fake interest income. In addition, internal auditors created fake customer identities to increase company revenue. According to Raju, the fraudulent activities started out only creating a marginal gap between actual and book profit. However, things got out of hand quickly. Cover-ups after cover-ups made the gap wider and wider. External parties involved: Satyam’s external auditors, PwC, were also under high scrutiny and criticism after the fall of Satyam. They were Satyam’s auditors for 9 years and signed off on Satyam’s financial statements annually. Under Indian law, if PwC signed off the financial statements, they are responsible for the numbers. Authorities blamed PwC because they failed to notice obvious red flags such as Satyam having a large no-interest bearing account. Reasonable companies would have invested the money in interest bearing accounts or distributed dividends to shareholders. Red flags raised: Merrill Lynch was appointed by Satyam to...
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...Week 2 Smith v. Store Smith was a part-time checker for a store. During one particular sale, she and a customer, had a disagreement about the “sale” price of a particular item; the customer left her merchandise at the counter and went to check the listed price on the shelf. While waiting for the customer to return, Smith voided out that sale and put the merchandise aside in order to continue helping the other customers in line. When the customer returned, she accused Smith of taking $10.00 that she had left on the counter with her merchandise. Smith denied even seeing the money. The store manager searched Smith’s coat pockets and did not find any money. He then balanced her cash drawer, and it balanced perfectly. The customer was still convinced that Smith had taken her money and continued to cause a loud scene. The store manager asked a female employee to accompany Smith to the washroom in order to strip search her for the money. Smith was asked to strip down to her briefs, and there was no sign of any money. The customer claimed that she had between $500-600 dollars in her purse; she wouldn’t count it out, but she maintained her belief that Smith had stolen her money. Smith quit her job soon after this incident and filed charges based on invasion of privacy against the store. FACT: A customer accused Smith of stealing money from her while she was retrieving a price for an item. Smith was searched, then taken into the restroom and strip searched. ISSUE:...
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...Critical Thinking Questions Zimbardo and Milgram Excelsior College SOC 101- Introduction to Sociology Module 2 - Assignment By: Tammy S. Wood Due Date: Sunday March 13, 2016 Professor: Charles Seagle Zimbardo and Milgram Experiments In this critical thinking assignment questions will be addressed that pertain to the Stanford prison experiment and the Milgram Experiment. The Milgram experiment participants were selected after responding to an advertisement to take part in a study at Yale University. The participants drew lots to find out who would be the "learner" and who would be the "teacher". Electrodes were placed on the learner and the teacher would ask questions, if question was answered incorrectly the learner would receive an electric shock. With each wrong answered the "learner" would receive a higher volt of shock("Milgram Experiment (Darren Brown),"n.d.). The Stanford Prison experiment participants were recruited by an advertisement placed in the newspaper offering male college students fifteen dollars a day to participate in a study of psychology of imprisonment. Participants were divided up into groups of two one group being the guards and the other group being the prisoners("Zimbardo shows how most evil comes from hierarachy," n.d.). The Stanford Prison experiment purpose was to understand the development of norms and the effects of positions, social expectations, and labels that are endured in a prison environment. Yes, this experiment is...
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