A case study of satyam computers limited
From: Jerahmia L.
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In: Business and Management. School of Business Management Evening Programme? Failed institutions, including Lehman Brothers, Enron and Satyam, would stand a testimony to this affray in a post-mortem analysis. It makes a distinction between legal and ethical compliance mechanisms and also shows that the legal compliance mechanism has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in 2 dealing with fraudulent practices and may not be addressing the real and fundamental issues that inspire ethical behavior. The focus of the virtues in governance is to establish a series of practical responses which depend on the consistent application of core values and principles as well as commitment to ethical business practice.
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Mahindra Satyam formerly Satyam Computer Services Limited was an Indian information technology IT services company based in Hyderabad , India , offering software development , system maintenance , packaged software integration and engineering design services. Tech Mahindra announced its plan to merge with Mahindra Satyam on 21 March , after the boards of both companies gave their approval. After the scandal hit, the companies revenue collapsed and the new new chairman, Vineet Nayyar , suggested that a turnaround would take three years. Nayyar commented "The turnaround of Mahindra Satyam is symbolically and practically complete.
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Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday January 7,, roiling Indian stock markets and throwing the industry into turmoil. The chairman, Ramalinga Raju, resigned as Chairman of SCSL after revealing that he had systematically falsified accounts as the company expanded from a handful of employees into a back-office giant with a work force of 53, and operations in 66 countries. Raju putting out a confessional statement admitting fraud that roughly 1.
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