Lessons from the Satyam Scandal
Today I read an interesting news report that mentions that the Satyam Scandal started with a small “adjustment” of Rs 10 crore 5-6 years ago.
Its been four months since the Satyam Scandal became mainstream news. Four Buyers (L&T, Tech Mahindra, Cognizant Technologies, and investor Wilbur Ross) have also lined up since Ramalinga Raju resigned as Chairman, stating Satyam’s balance sheet of 30 September 2008 contained:
What is most important to me is the lesson from this scandal. The reason such scandals happen is because there are Assumption of Truthfulness in Corporate Hierarchy; that in integrity and trutspeaking CEO > VP > Dir > Mgr > Individual. This to my mind is the only reason that Raju could get away with “adjustments” for 5-6 years. This is the reason that other large scale scandals such as Enron happenned and powerless individuals could not come out fearing they wont be heard after all. The media makes too much out of CEOs and Business Leaders — making societal gods out of them for their power, influence and wealth. Who would then dare to go against such media “gods” even in normal corporate interactions? Our society and media need a fix not just Accounting standards before Satyam like scandals would get arrested.
POSTED IN: India, Leadership/Life, Management, Uncategorized
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