Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0045

Year : 2010

Industry : IT-ITES

Region : India

Teaching Note: Available

Structured Assignment : Available

Abstract:
Satyam Computers Ltd. (Satyam) received the Golden Peacock Global Award for excellence in Corporate Governance in September 2008. Just 3 months later, on January 7th 2009, the founder and chairman of Satyam Computers Ltd. (Satyam), Ramalinga Raju confessed that he had cooked up the accounts– a sheer lapse and mockery of corporate governance on the part of Satyam. This case study highlights how the management was bailed out by the government-nominated board successfully. It focuses on the status of the company Mahindra Satyam (Msat) 1 year after the takeover by Tech Mahindra. It also highlights the challenges and issues being faced by Msat while debating whether companies of national importance should be bailed out by the respective government when it hits the dead end (financial bankruptcy or moral bankruptcy leading to financial bankruptcy). It also attempts to explore the ways and means to avoid the occurrence of such scandals in future.