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Satyam: the Enron of India

In: Business and Management

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| IBA111 Management Concepts | | Luke Sutton | 10/8/2012 |

Case for Critical Thinking: Satyam – the ‘Enron’ of India. |

Table of Contents
Background to case study1 introduction to management issues1
Identification of management issues2 rationalisation behind unethical behaviour2 corporate governance and social responsibility2 recommendations3 Implementation of recommendations3 references4 1.0 BACKGROUND
The purpose of this case study is to identify the management issues of Satyam Computer Services Limited’s, former chairman Ramalinga Raju when he admitted to corporate fraud in 2009, and how these issues could be addressed. Satyam Computer Services Limited, (now known as Mahindra Satyam) is a “leading global information communications and technology company”. (Anon., n.d.) It is a part of the “US $15.4 billion dollar Mahindra group, a global industrial federation of companies of the top 10 business houses based in India”. (Anon., n.d., p. 1; Anon., n.d.)).
1.1 INTRODUCTION TO MANAGEMENT ISSUES
“India’s corporate community experienced a significant shock in January 2009 with damaging revelations about board failure and colossal fraud in the financials of Satyam.” (Afsharipour, 2010)Ramalinga Raju and the CFO of the company were charged with “conspiracy, cheating and falsifying records. Raju was also allegedly using salary payments to fabricated employees, in order to steal money from the company.” (Anon., n.d.) This case study will explore the unethical behaviours of Ramalinga Raju, but also how ethical standards and social responsibility factors in with Satyam’s Computer Services Limited’s own management issues, which would have also contributed to the fraudulent activity that resulted in one of the biggest accounting fraud scandals in India. Secondly this case is going to explore how this case “served as a catalyst for the Indian…...

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