The circumstances under which Satyam’s fraud was exposed is interesting in the fact that the exposure was not immediately caused by any type of regulatory or auditors finding nor was the fraud presented through specific shareholder complaints. Instead, exposure was a result of Ramalinga Raju’s actions to perpetuate his fraud through the proposed acquisition of a firm that investors rejected. The domino effect started as many investors and the media took an interest in corporate governance practices - Satyam’s were being called into question. In addition, more details and concerns were presented surrounding the fraud when a letter a former senior executive emailed the board of directors, confirming details about financial irregularities and questioned the level of liquid assets Satyam really had. The wake of destruction left in this CEO’s path can be attributed to several factors. Overshadowing all of the individual factors is the need for increased governmental regulation and revised laws, specifically for companies not registered in the stock market. First factor to mention is the governance mechanism Satyam used can certainly be called into question. With Raju and his family members often in a director role and serving on the board of the many of his non-public 327 companies, it can be much easier to facilitate this activity absent standard governance practices that a public company would be required to follow. Another factor to discuss is the competency of the board members which could lead to failures at Satyam. The structure of the board left the impression that leveraging internal members to be part of the board was not likened as it was only the two founding brothers and 2 other internals with limited knowledge of the business sitting on the board. The qualifications and occupational background of the independent board members may also play a factor – a board composition with strong ethical and educational backgrounds as well as a better understanding of the actual business may have been able to uncover any types of fradulant activity much earlier on. Third, the auditing function failed on all three levels at Satyam. Both internal and external auditiors ignored financial irregularities that should have easily been questioned and reviewed my early on. Regularly examining policies and procedures and having auditors with required experience and competence would have decreased the chances of this fraud from occurring. The absence of an effective governanve enabled much of the activity to occur. The constant cover up and reports of profits and were inflated made it harder and harder for Satyam to continue. Internal Controls are designed to promote efficiency and effectiveness of operations, compliance with policies and procedures, and reliability of financial reporting. Because controls are inherent in the everyday operations of the business, they are critical for a company to prevent or at least reduce the exposure to fraud risk. There are several different types of controls that are necessary to help companies gain some level of comfort that fraud can be prevented or detected. In the case of Satyam, one of the primary controls is the Board of Directors. The board provides monitoring and oversight related to strategic and financial decisions. Also, an Accounting Committee was established to oversee and work with the auditors. Further, internal and external auditors have the responsibility to monitor internal controls and evaluate the reliability of the financial statements. Note that government regulations, such as the accounting standards of India and IFRS, help facilitate financial reporting by auditors and firms. Finally, corporate governance and company policies on ethics are important internal controls to help in the prevention of fraud. Corporate Governance is extremely important in order to ensure that strategic decisions are made effectively and in the interest of stakeholders. The
Baidu.com, an online news also known as the “Google of China” was involved in a case involving human’s health. The rumor about Baidu.com was that the company neglected its ethical code of conduct by accepting bribe to protect a certain number of milk manufacturing company from online searches about the tainted milk scandal.…
The assumption here is, despite of the misconduct described in the case, Satyam has fulfilled its very basic economic and legal responsibilities.
Legal VS Unethical
There is a grey area set out by the case - when there is lack of regulations / controls on the practice of the corporations, whether they are ethical although they contribute a lot to the local society.…
Mahindra Satyam Computers Service Limited, Hyderabad, India, June 2007-March 2011 Software Engineer - Customer Profile Repository (CISCO)
Designed and developed Automation Testing framework for Customer Profile Repository (CPR).
Trained a team of three professional engineers. The team developed test scripts for 4 CPR modules and decreased testing team's turnaround time of deliverables by 50%.
Gathered requirements from client and used them to…
This means that just describing a technology or how the case study organisation uses a
technology is an inadequate response to this task, and will not be rewarded in the marking scheme. There
is an expectation that your submission will be analytical, and must draw on theory to frame its evaluation
of an organisation’s deployment of business information systems in a competitive environment.
There are 2 parts to this assessment.
Part A (60 Marks)
There are 5 Short Answer Questions.…
Edexcel Level 7
ASSESSMENT ACTIVITY : UNIT No: 2
UNIT NAME: Managing Change in Organisations
ASSESSMENT NO: 1 OF 1 FOR THIS UNIT
Full Name: RAHUL DESHMUKH 4 Intake: October’ 2008
Date issued: ____________ Date due: February 13, 2009 Date submitted: June 01, 2009
Assessor(s):_______________________________________ Learning Outcomes: 1, 2, 3
Outcome Evidence for the criteria Feedback Assessor’s decision Internal Verification
Explore the background…
CASE REPORT 1: STARBUCKS
Team 8 – Jahanzeb Zafar, Justin Pugel,
Satyam Bharadwaj, Anthony Pece
CAUSES OF SUCCESS
Howard Schultz started from group up
In 1981, Howard Schultz (Current Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later as the Director of Marketing.…
In this case, the problem may go out of control.
2. Monitor manager’s action:
The shareholders may monitor the management’s action closely to ensure that the situation is not going out of control.
3. Make manager’s take ownership
By giving the managers a portion in the capital of the company in the form of say ESOP, the manager will also have a moral responsibility imposed on him to make decisions and act in the best interests of the company.
"Why is ethical…
The company has a solid business property and individuals have joined together to make a case for the purposes and principles inherent in achieving DEVELOPMENT beyond the scope of legitimate return to help people who are owners of corporate business . The company currently has a total of criticality days. The purchase of the advantages is that the agreement the companies will prevail.…