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Satyam was once a leader in IT services in India until pressures to keep up with the growing outsourcing industry overwhelmed the company. This convinced company chairman Raju to falsify operation figures, embezzle funds and purchase lands resulting in fraud.
There are several management issues within this case including unethical behaviour of Raju, fraud, corporate governance, cultural relativism and corporate social responsibility.
Ramalinga Raju, Chairman and founder of national Indian IT services company Satyam, admits to fraud in resulting in share value depletion, diminished public trust and loss of credibility.
A massive rebuild of the company must be initiated by the appointment of new company directors, by regaining trust of public and investors, and re-establish the company image within the IT services industry. Raju made decisions without consult from the board of directors and relevant stakeholders within the organisation, committing acts that were unlawful.
Current corporate governance, auditing and legal consequences Satyam fraud case essay obviously not severe enough to deter white collar crimes such as these. With the growing Indian outsourcing industry growing, Satyam was under severe pressure to perform in order to remain at the top.
These conditions prompted Raju to make unethical business decisions. These decisions were made as Raju believed it was his corporate social responsibility to ensure the survival and success of the business to benefit company stakeholders.
Raju was pressured by the success of other industry leaders and placed in a dilemma to deliver profits and sustain their position in the market. Although personal greed was a major factor, Raju still demonstrates some morals by confessing to his actions in Raju practised the individualism view of ethics, as he was pursuing his own interests by investing in land purchases, and embezzlement of company funds.
These actions only benefited the short term for Raju and did not benefit the long term of the company as he believed it would. It seems through his actions and statements he believed showing profits and purchasing land would improve the company financial position.
There are also questions regarding the role and responsibility of the auditor PricewaterhouseCoopers and how such extensive fictitious financials could possibly be overlooked.
Mehta, Srivastavaare It can also be considered that Raju acted with cultural relativism by protecting his family interests with land purchases. This could be perceived as neither right or wrong ethically, as through Indian culture family is more important than western individualism views.
There could be many reasons Raju acted unethically. Through his actions and statements, it can be believed that Raju thought he was acting socially responsible.
Corporate Social Responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families, as well as the community and the society at large. Recommendations Corporate governance, was one of Satyams biggest management issues, this highlights the need for more severe punishments to regulate white collar crime.
Indian laws were not severe enough to deter Raju from committing severe fraud crimes, global legislation could control and regulate multinational companies, although this may be too difficult to enforce on a global level, it should be considered as we move towards a global economy.
Building a business with a strong code of ethics and moral values, incorporated by good leadership can ensure strong corporate governance. Satyam must establish new internal policies to ensure a stabilised code of practice in order to rebuild their reputation and trust from stakeholders.
When faced with ethical dilemmas a decision cannot be made by one individual, as their views and values do not reflect the company as a whole. Ethical dilemmas must be resolved by the cooperative and relevant stakeholders to ensure individual or personal reasoning is avoided.WorldCom fraud was committed in two main ways.
Print Reference this vendors and customers to report any suspected fraud activities. In this case, when Cynthia Cooper, internal auditor of WorldCom discovered the fraud, she reported to the CFO.
If you are the original writer of this essay and no longer wish to have the essay published on. Views on the Satyam fraud case: Before writing this report, I read some articles from The Economic Times, The Times of India, The Hindu and a blog by Shweta Rajpal.
Essay on Fraud Case Study the auditors involved and their role in the scam and the current situation of those responsible for the fraud. OVERVIEW OF EVENTS IN SATYAM FROM Raju formed Satyam in in Hyderabad, India with fewer than 20 employees which then became one of India’s biggest IT services firm (Atesci, Bhagwatwar, Deo.
Satyam Fraud Case Words | 7 Pages Views on the Satyam fraud case: Before writing this report, I read some articles from The Economic Times, The Times of India, The Hindu and a . Satyam Case Study - Management Issues Essay. Introduction Satyam Computer Services is a global IT service company with clients including Telstra, Coca-Cola, Qantas, NAB and Suncorp - Satyam Case Study - Management Issues Essay introduction.
Satyam was once a leader in IT services in India until pressures to keep up with the growing outsourcing industry overwhelmed the company. More Essay Examples on Ethics Rubric. Unethical acts of fraud committed by Satyam chairman Raju have resulted in loss of company image and loss of trust from customers, investors, stakeholders and the public.