SATYAM: BROTHERLY DEMISE THE RISE AND FALL OF RAMALINGA RAJU
TABLE OF CONTENTS COVER PAGE TABLE OF CONTENTS EXECUTIVE SUMMARY 1. BACKGROUND 2. RAMALINGA RAJU AND THE SATYAM SCANDAL 2.1 FACTORS LEADING TO THE FRAUD 2.2 AFTERMATH OF THE SATYAM SCANDAL 2.3 VICTIMS OF THE SCANDAL 2.4 CORPORATE GOVERNANCE ISSUES AT SATYAM 2.5 ETHICAL DILEMMAS FACED BY RAJU 1.1 INDIA IN THE GLOBAL ECONOMY 1.2 MERGENCE OF SATYAM COMPUTER SERVICES E
3. HOSMER’S SIX STEP PROCESS 4. LESSONS LEARNED 5. RECOMMENDATIONS 8. CONCLUSION
EXECUTIVE SUMMARY ________________________________________________________ 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 from Enron to the recent financial crisis have time and time again proven that there is a need for good conduct based on strong ethics. In this research paper, we examine in detail the gross negligence of stakeholder concerns and over indulgence of key management on a personal and organizational level in immoral 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 organizations and the need to foster a culture of integrity and trust. 1. BACKGROUND ___________________________________________ In order to evaluate and understand the severity of Saytam’s fraud, it is important to ...