‘Satyam †the Enron of India’

INTRODUCTION The case study ‘Satyam – the Enron of India’ looks at Satyam Computer Services Limited and its involvement in corporate fraud leading to one of India’s largest white-collar crimes. The Satyam scandal marks as one of India’s biggest corporate scandals where its stakeholders were continually fed misleading financial information from its late chairman Ramalinga Raju. This once promising, global IT company provided its services for some of the largest companies in Australia and the United States, such as Telstra, Suncorp and Qantas, to mention a few.The following case study analysis looks at the failure of Satyam Computer Services Limited due to fierce competition and the need to impress stakeholders, along with inaccurate, misleading accounting statements, unethical behaviour and poor leadership. PART 1: Management issues in the Satyam case study From reviewing the case, the management issues in the case study are unethical behaviour and po or leadership. As there was no approval needed form shareholders it gave Raju and his brother the ability to make all managerial decisions.The lack of leadership and abuse of power let independent directors and audit committee feel intimidated enough to trust in the managerial decisions without question. The need for power and money led to negligence of fiduciary duties and inaccurate deceptive accounting on Raju’s behalf. Raju’s total disregard for managerial ethics just to make short term figures to impress Satyam’s stakeholders resulted in a complete lack of corporate social responsibility.Raju’s greed led to the manipulation of financial records to show increased earnings, payment of salaries to ‘ghost staff’, diversion of funds to purchase property in family member names and fabricated profits ¬Ã‚ ¬Ã‚ ¬Ã‚ ¬. It is believed PricewaterhouseCooper failed to perform its role correctly and therefore this failure to follow fiduciary responsi bilities lead to Raju’s manipulation of the businesses statements and cash flow was go undetected. PART 2: Why the issues are problematic? In the first instance we examine the unethical behaviour and the conflict of interest with family members in high company roles.Since the company was founded and owned by Raju himself, the chairman, and his brother occupying the role of managing director, which gave them and overwhelming majority and a psychological advantage into the decision making of the company. This advantage is how the company books were able to be cooked and inflated profits by selling inflated stakes for went undetected for so long. Without the approval of from the shareholder the directors were able to use company funds to be diverted into family real estate investments.Raju’s expectations for power and ambitious corporate growth also contributed to the fraud. Whist there is no right or wrong way to behave due to Raju’s lack of moral leadership Satya m’s stakeholders, clients and employees were also greatly affected by the demise. Rationalisation and justification lead to negative emotions which could have caused Raju to act emotionally and unethically without any regard for his stakeholders. The damage to the credibility of the company forced the cancellation of projects which in turn lead to the employee’s loss of wages, jobs and self esteem.The mistrust would have had clients question accountability and would have sought business with Satyums competitors. Shareholders would have lost money in the form of investments. Deceptive reporting practices and complete lack of transparency in the finances damaged the company’s future credibility. As PricewaterhouseCooper failed to detect the discrepancies I believe they also hold some accountability in the downfall of the company. As the falsifying of Satyam’s books would lower its stock values, which inturn would lead lower profits and less investors.Howeve r to leave the auditor out of the equation would be a mistake. As a result of negligence with both PricewaterhouseCooper and Raju, the outsourcing company suffered a massive blow in trust and leave further investment in the company questionable. However whilst the scandal put pressure on the Indian government and other Indian outsourcing, this type of scandal wouldn’t be limited to just India as a culture, as It comes down having a good global manager that exercises good ethical behaviour.As all mangers are human it’s the ability of mangers to be self disciplined and handle pressure to provide total quality management. PART 3: Recommendations. In Satyam’s case the need to merge or sell the company would be the first step to restore some faith in the company. What happened with Satyam served as a reminder that a universal, quality corporate governance mechanism is needed to ensure future companies don’t follow in Raju’s footsteps. Complete transpare ncies in finances would also avoid any temptation for unethical behaviour along with more deterring punishments for frauds of this scale.This would ensure higher loyalty and trust from stakeholders. Henri Fayol’s contribution to management thinking would be a great concept to start with, his five principles; I. Planning – Establishing objectives and goals. Recognising obstacles, these can be internal or external, and how to control them. Forming, implementing and following up of plans. II. Organising – Identification, classification, coordination III. Commanding – The delegation of duties to correct workers, successful leadership. IV.Coordinating – Make decisions and ensure all information is shared and to monitor the works involved. V. Controlling – Monitoring and making sure all things are running according to plan. Employee performance reviews Whilst policing manager personality traits would be a perfect solution the reality of policing t his is near impossible therefore management accountability and responsibility would be a good start. Having a universal Code of Ethical Conduct and setting out universal teachings or courses in global ethics may also provide a solution.By obtaining a better understanding of cultural diversity, understanding the abilities, vales and personality types of different cultures ultimately it is up to the manager to be fully accountable. REFERENCE LIST Schermerhorn, Davidson, Poole, Simon, Woods, Chau, 2011, Management Foundations and Applications http://www. mahindrasatyam. com/investors/documents/Annual-Repor-for-the-year-2011-12. pdf http://www. vrl-financial-news. com/accounting/intl-accounting-bulletin/issues/iab-2009/iab441/satyam-scandal-where-to-from. aspx http://www. telegraph. co. uk/finance/4161198/Satyam-accounting-scandal-could-be-Indias-Enron. html

Compare and Contrast Egyptian and Mesopotamian Culture

The Mesopotamia Civilization and Egyptian Civilization, both at their prime around the same time had many similarities as well as many differences. Both civilizations brought ideas and processes into the world that impacted the development of other societies around the world. The Mesopotamia civilization was a theocracy ruled by a monarchy which they believed to be divine in origin, Meaning kings derived their power from the gods and were in direct connection with the gods. The religion of the people of Mesopotamia as polytheistic, as they worshiped over 3000 gods and goddesses.The people believed the gods and goddesses owned the cities so each city had a temple that was built with much wealth. The temples owned much of the land and livestock. The temple was the center of the city as well as a political and economical center. There was three main social classes, nobles, commoners and slaves. Nobles included royal and priestly officials and their families. Commoners were the nobles cl ients as they worked for the palace and temple as well as other common workers of the city. Slaves ere owned by palace officials and were used for building project and weaving.The economy was based on agriculture. The valley between the Tigris and Euphrates Is where the Mesopotamia peoples thrived. The river valley Is the main reason why the society survived and prospered being that their economy was based solely on agriculture. The law code of the people was based on the principle of retribution, (eye for an eye). The Egyptian Civilization was a theocracy as they had a king thought to have a divine connection with the gods. Egyptians were a polytheistic peoples the worship any gods with two specific groups being the sun gods and land gods.The Egyptian religion was apart of everyday life and could be no other way, pleasing the gods was most Important. The Egyptian social class was God-king, nobles and priests, merchants and artisans, serfs and common people. Egyptians were content w ith their everyday life. They married young and established home and family. The two civilizations were very similar In ways. Both societies had a polytheistic religion and both had kings who had a delve connection with the gods. The social classes of both were similar the differences were the Egyptians had a class of recreants and artisans a class above the common people.The traditions are very different as the Egyptians were very extravagant In their celebration of death and preparation of kings and company going Into the afterlife. Both societies thrived In a river valley environment, both used agriculture to support the people both physically and economically. Also because of their locations other peoples wanted the land for Its fertility so each society has Its share of conflicts. Both societies has a writing form. Women. Men were seen as the head of household and the women here to care for the children and the home.

Final Exam Essay Example | Topics and Well Written Essays - 500 words - 12

Final Exam - Essay Example Tyrants consolidate powers that they use in ruling the masses to accept what they impose. One of the characters that prove that Pericles was not a tyrant is his approach of doing things. For instance, he was able to use the majority of the people in the assembly to pass resolutions that restricted Areopagus when his main political challenger was away in Sparta. The resolutions were not meant to benefit him but were for the good of the citizens. He managed to pass legislation that gave people powers and created institutions where citizens would have the rights of voting and to contest for political positions (History World 12). Therefore, he managed to overcome tyrant’s characters by widening the democratic space for citizens. Secondly, Pericles was a changed leader once he took over leadership. He was willing to give back to the people hence attracted more citizens who came to his support. This is also evidenced when King of Sparta, Archidamus, asked Thucydides whether he was a better fighter than Pericles. He answered that Pericles was better because he can convince the audience that he has won in cases where he is defeated. He was also above reproach by citizens since he was clean from corruption (History World 15). The character he displays does not portray one who is a tyrant, but an individual who consults with others in doing things. In other instances, Thucydides had admired the leadership style of Pericles where he acknowledges that Athen was in the name of democracy with first citizens governing it. Through this comment, he acknowledges the charismatic leadership style which Pericles showed where he was able to convince and manipulate. Similarly, there is no accusation labeled against Pericles, but instead his opponent focuses on his integrity (History World 16). Lastly, Pericles was not carried away by people; instead, he provided guidance to the people. He acted as a public charismatic figure and as an advocate on the advisors proposals.

The Development in Saudi Arabia Essay Example | Topics and Well Written Essays - 1500 words

The Development in Saudi Arabia - Essay Example It also experience major government controls over various economical activities. The growth rate of the country since 2000 has been varying with the highest being in 2004. The country is ranked as the largest exporter of petroleum in the world and has a very important role to play in Organization of Petroleum Exporting Countries (OPEC). Currently, the country is focusing on encouraging the private sector to invest in the country in order to create more employment opportunities for the local citizens in order to reduce the unemployment rate in the country that currently stands at 10.9%. Some of the effort by the government to attract more investors in the country is through improving service provision in telecommunication sector, natural gas exploration and other power generation measures. These measures are aimed at provision of a serene enviroment for transacting busineses. One of the challenging issues that affects Saudi economy is a high population of people who are illeterate. Th is has given way for the foreignors who retrieve countrys wealth and send back to their country. The government is therefore, aiming at improving education levels in the country through setting up various education institutions in the country.(Trading economics 2012) Population The population in Saudi Arabia stands at 26.1 million people as per July 2011 statistics. 20.5% of this population is Saudis while 5.6million of the total population are composed of foreign nationals. Annual growth rate in the country stands at 1.536% as per 2011. Major ethnic groups in the country comprise of Arabs 90% (of native population), afro- Asian (10% of native population). The main official language is Arabic while the literacy levels stands at approximately 78.8% with male comprising of 84.7 and female 70.8%. The workforce in the country comprise of 7.3 million with 80% of this number being foreigners. Industries hold 21.4 % of the population with services which include government holding 71.9% and agriculture on the other hand supporting 6.7% of the population (US department of state, 2012). Wealth indicators in Saudi Arabia Middle East countries are one of the driest countries in the world. As a result the country spends much of its revenues in importing food from other agricultural viable countries. In measuring the level of wealth, the main wealth indicator is food security. Food security in Saudi Arabia is measured using three key indicators. They include food aid as a proportion of overall domestic consumption, imports as a proportion of total consumption and lastly the income levels of the population in the country (Wilson & Bruins 2008, p.52). On the household levels, the mostly used indicators include: land ownership, vehicle ownership, type of the house, ability of the citizens to save their money and average earning per household. This gives the government a data that is used to gauge the public wealth status an aspect that is used in resource distribution (Wilson & Bruins 2008). Most significant industries in Saudi Arabia Saudi Arabia is the world leading oil exporting countries. As a result the country’s main industries are oil related. These industries include crude oil production industries, petroleum refining industries and petrochemical industries. The three industries are the major contributors to Saudi Arabia economic growth. In addition, the country is one of the leading dates exporters making the sector play an

Strategic Human Resource Planning Essay Example | Topics and Well Written Essays - 2500 words

Strategic Human Resource Planning - Essay Example The researcher states that the organisations in today’s competitive era have realized the importance of human and capital management because both are considered critical for the achievement of long term and short term goals. The HR managers are now focusing on employing right people, at the right position and at the right time with the right set of skills, knowledge and abilities. Shift from personnel management to human resource has called for innovation and change and thus, keeping this in view, organisations are inclined towards strategic human resource planning as the ultimate solution of the challenges being faced by them in this competitive era. Strategic human resource planning is a process in which organisations ensure that the right people are employed with the right skill set. It is ensured that the desired set of behaviour have been developed in them through employee training or development. Organisations probe into these factors to get to know whether their employe e developmental programs are such that can easily lead to the achievement of organisational goals and objectives or they need to employ such people that can lead to successful completion of tasks. Human resource planning refers to identifying and analysing the availability of human resources for the purpose of ensuring whether an organisation can achieve its intended goals and objectives. It is a complex process and requires specialized skills in the field of planning because it relies heavily on identifying the right set of people with the right skill set. ... It allows managers to evaluate whether they have the right set of people with the right skill set to pursue their organisational strategy. Secondly, it envisioned managers regarding firms’ resources both financial and human capital because these are two of the most important resources that help in the execution of the strategies once they have been devised by the concerned executives. Strategic Human Resource Plan Managers at Jim Cleaning aim at linking their strategic planning process with human resource planning because they are aware of the fact that employees are valuable assets of any organisation and thus, it is required that there should be a proper strategic HR plan devised that depicts a guideline for the employees as to how to move towards achieving their organisational goals and objectives. According to (Snell &Bohlander, 48), following are the steps involved in developing a Strategic HR plan and keeping in view steps the managers at Jim Cleaning proposed for the HR strategic plan. Step 1: Analysing mission, vision and core values The first step involved in developing strategic HR plan is to develop mission and vision statement. Mission statement shows the purpose of existence of the organisation whereas the vision statement shows that what an organisation aspires to become in near future. These statements help organisations to develop their strategic goals and objectives whereas the core values of an organisation provide managers with principles and beliefs that aid them in decision making process. Step 2: Environmental Scanning The second step involved in developing strategic HR plan is environmental screening. Managers at Jim Cleaning are very much concerned regarding

Animal Captivity of Orcas Should Be Banned Essay

Animal Captivity of Orcas Should Be Banned - Essay Example The need to maximize profits and minimize costs means that the welfare of the animals is neglected (Clemmit, 2010). Unlike the use of animals for medical research, this practice is merely for the amusement of the public.It serves no greater good besides giving people momentary pleasure. The death of Dawn Brancheau in a deadly encounter with the orca responsible for two other deaths shows the consequences of vested economic interests. It would have been prudent to ensure that such an animal does not encounter another human being. The lives of trainers are endangered (Martinez, 2014). The documentary explores the death of Dawn Brancheau who was killed by a captive orca. The same orca had killed two other trainers. Although there are generally accepted occupational hazards, the death of three people by one animal is unacceptable. The animals are destabilized when they are away from their indigenous habitats making them violent. The practice has a negative effect on the mental health of the animals. The film suggests that Tilikum had been driven to madness by his captivity (Martinez, 2014). Captured animals live in a restrictive environment causing them to undergo pain, distress and in extreme cases death. Many marine biologists believe that orcas are designed to travel millions of miles in a single day. The restricted environment makes them irritated and a danger to people (Martinez, 2014). It is morally wrong to use animals for human amusement. The People for the Ethical Treatment of Animals (PETA) has equated the practice to slavery (Martinez, 2014). It is morally wrong to inflict pain on one creature for the benefit of another. The animals have the ability to feel and should not be tortured (Clemmit, 2010). Modern science is increasingly showing that animals are more complex creatures than expected (Clemmit, 2010). A good example is chickens which do not even qualify for Animal

Government Regulation Essay Example | Topics and Well Written Essays - 1750 words

Government Regulation - Essay Example For example, the constitution allows a person the freedom of speech or expression yet in the case of media houses and broadcasting stations the government comes in the regulate the news content permissible for them to air in their radio or TV stations, or to post in their websites (Rasmussen 47). Operation Regulation Regulations tend to develop at numerous levels of government as time passes by and commissions end up gaining greater power with respect to the operations of regulations. It is now so involving for government departments and agencies to take part in the design and final implementation of regulations. It is noteworthy that government agencies constituted by either the executive or the legislative branches are highly responsible for actual implementation of various regulations issued by the government department in charge. For instance, in the United States, the Food and Drug Association (FDA) and Environment Protection Agency (EPA) are responsible promoting laws that ensu re safe food and drug products are in the market while as well as laws that cut down on pollution effect in the country respectively (Rasmussen 47). Government agencies have become powerful institutions over the recent past owing to the delegate roles they extended by the government. For instance, the legislative arm of the government may formulate or enact laws and establish guiding principles and agencies leave to make follow-ups and final implementation. The operations of these agencies are highly influenced by their independence and as such, there are certain agencies that free from the control of the executive and other department of the government. The government department as well as agencies do not... Government Regulation The activities usually regulated by the government or such legal statutes of law include behaviours of people, actions of a person or groups of people, authority of office holders, and the rights upheld by the constitution to individual citizens. It the role of all branches of the government, i.e. the judiciary, the legislative and the executive to make and implement policies and rules that help in maintenance of law and order throughout the country. The deliberate attempt by governments to set up legal barriers to control and restrict certain activities by individuals and corporate entities in the society is government regulation. This is not a contemporary issue but began several centuries ago where community elders and leaders engaged in attempts that would advance their interests. Consequently, governments make use of regulations as a way of protecting and controlling important matters of the government and the civilians. Poor information is another reason for market failure. Market failure often arise when business enterprises fail to supply sufficient information to consumers and other parties such as creditors or workers to allow them make informed choices. For this reasons government regulations come in handy to correct this market failure. A clear example is the disclosure requirement by pharmaceutical companies as well as lending institutions, as they are required advice their clients on the possible side effects of the drug and interest rates respectively

Psychological Implications of Customer Participation in Co-Production Essay

Psychological Implications of Customer Participation in Co-Production - Essay Example The research was designed to determine where the customer places blame for a negative outcome, or who they assign credit to for a positive outcome. The research in intended for any firm that distributes or produces goods and services where the customer participates in co-production. The research was conducted using undergraduate students in a controlled research study. It was conducted in two phases, which examined the customer's self-serving bias, or the degree that they took responsibility for a positive or negative outcome. The first phase examined the impact that the self-serving bias has on customer satisfaction, and the second phase examined methods to reduce the self-serving bias. It has been traditionally thought that the lowered price of a self-serve product and customer participation, such as with self-serve gasoline, would bring about greater satisfaction based on economics. However, there is also a level of psychological satisfaction with the firm that is based on the outcome of the transaction and the customer participation. The research found that if the outcome is positive, the customer has less satisfaction with the firm when they participate in the production. This indicates that the customer takes partial credit for the positive outcome.

Human genetic engineering Research Paper Example | Topics and Well Written Essays - 2000 words

Human genetic engineering - Research Paper Example Human genetic engineering, HGE refers to a process where medical professionals and scientists interfere with the DNA or genetic makeup of a human cell. Ideally, this process aims at fixing defective genes that have the potential of causing diseases or other genetic complications (Berry 5). Hanna refers to this as genetic enhancement and acknowledges it as the process where genetic material would be transferred for the modification of non-pathological human traits. The institute further argues that the term entails not just making humans well, but rather better than well, by optimizing their capabilities and attributes. This could be accomplished through insertion of a foreign gene into an organism that is virus-like. Thereafter, this organism would be introduced to the human cells thus inserting the new gene into the subject’s genome. Three applications have been used for HGE. Somatic engineering would target specific genes in the given tissues and organs without interfering with the genes occurring in the sperm or eggs (Koops et al. 19). This application aims at treating an existing condition without altering the entire genetic makeup of an individual. On the other hand, germline engineering targets the genes in embryos, sperm or eggs at the early development stages. Thus, this genetic modification affects the cells in the body of the developing embryo that are created afterwards. If the individual sires offspring, such genes would be passed onto the new generation. Finally, cloning could also be applied in HGE in three different ways as given by Berry (24). DNA cloning, also referred to as recombinant DNA technology, involves the transferring of DNA fragment from an organism onto an element that is self-replicating so that the DNA replicates itself in the foreign host cell. To generate an organism with the same DNA as an existing organism, then reproductive cloning would be used. Finally, therapeutic