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Governance Failure at Satyam Case Solution & Answer

A decision of independent acquisition by Satyam Corporation has created discontent among shareholders and led to a series of surveys. Investigations revealed a fraud of 50 million rupees. This led to the resignation of several members of the Board and CEO. The whole episode has become a parody of corporate governance practices, which raises doubts about the effectiveness of governance and accepted norms.This case covers the events that led to the failure of Satyam in detail. The roles not only the developer but also elsewhere, such as managers, board of directors, auditors and bankers, are described in detail. The case drew attention to a number of corporate governance and ethical issues and also provides an opportunity to discuss what action should be taken by regulators, auditors and other agencies to avoid this situation, the frauds. This can be used in an undergraduate program, MBA and executive development to highlight the following issues: 1) Ethics and Corporate Governance: This case can be used to analyze the effectiveness of current business rules and how government can be more effective. 2) the culture and values ​​of the organization: corporate mechanisms, such as government ownership structure, board composition and stakeholders to determine the influence of the culture and values ​​of the organization. Small businesses inherit the values ​​of company founders. In large companies, managers and members of the Board of Directors plays a central role in defining the values ​​of the company. This case can be used to examine the factors that influence the development of the values ​​of the company.
by
Ajai Gaur,
Nisha Kohli
Source: Ivey Publishing
14 pages.
Date Posted: April 29, 2011. Prod #: W11095-PDF-ENG
Satyam case of government failure solution

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