Lessons from the Rajat Gupta Affair
The recent case of Rajat Gupta had sent shock waves across the business world. It brings us back to the love or hate relationship debate of business and ethics. How can a person of such stature and credentials droop down to such low levels and be sentenced to spend two years in prison. Ignoring simple truths and principles in our lives can have drastic effects and consequences and even ruin the achievements and hard work of our entire life by leaving them dented and tainted. The Humble beginnings of the Businessman
Rajat was born into a well-mannered and disciplined family in Calcutta, India. His father was a freedom fighter turned Journalist and his mother was a school teacher. By the age of 18 Rajat had lost both his parents and became an orphan. Rajat had led a hard life, but he gave education the utmost importance. He then joined the Indian Institute of Delhi in 1971 and received a placement offer from ITC which he later rejected. He then went on to get his MBA from the prestigious Harvard Business School in 1973. Later on he became the first Indian born CEO of the consulting behemoth, McKinsey & Co. All in all Rajat was a brilliant businessman with an impeccable track record and held degrees from the most prestigious and premier institutes of the world. So what has led the corporate world to hate such a person and what has led the judicial system of USA to sentence the man to two years in prison and order him to pay $5 million in fine? The Verdict
In June 2012 Rajat was convicted on the charges of insider trading in relation to the case of Rajaratnam, the founder of Galleon hedge fund. The SEC’s Enforcement division had filed a case against Rajat that he had leaked critical and important information to Rajaratnam and had made illicit gains amounting to $18 million. The SEC alleged that Rajat Gupta had leaked critical information about Goldman Sachs and P&G while serving on the Board of Directors of...
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