Ethics Essay

2316 Words Feb 20th, 2010 10 Pages

Satyam shows B-schools too need a co…

Enter Keyword

S ATU RD A Y , F EB RU A RY 2 0 , 2 0 1 0 1 :1 6 P M



Travel Books Culture Style Play Slideshows Insider Parenting

P os ted: M on, J an 1 2 2 0 0 9 . 2 :1 9 A M I ST

Corporate News

E mail del.ic digg news V ine

P rint

Satyam shows B-schools too need a code of ethics
Most of the people primarily involved in the Satyam scam have a connection with reputed business schools
Business Case | Premchand Palety

font s ize

Livemint Home

The Satyam Computer Services Ltd scandal has show n w hat bad corporate governance can lead to. It w ill take some time before the
…show more content…
Satyam’s audit committee consisted of “independent director” M . Rammohan Rao, then dean of the Indian School of Business (ISB). He was on Satyam’s payroll, draw ing a compensation of Rs13.2 lakh, besides getting 10,000 shares for a nominal value of Rs2 each. Satyam w as paying another director, HBS professor Krishna G. Palepu, Rs91.91 lakh, plus 5,000 shares for Rs2 each. Raju cleverly used the HBS and ISB brands to cover up his unethical activities. Like Rao, Palepu too should resign from HBS; he was closely associated with Raju for several years and has brought a bad name to his institute by failing to protect the interests of shareholders. Raju’s other possible accomplice PricewaterhouseCoopers, the auditing firm, is a regular recruiter from the Indian Institutes of Management (IIMs). It no longer has the moral right to continue operations. To assume Satyam is an isolated case w ould be folly. W indow dressing of balance sheets is a common phenomenon in the Indian corporate sector. In the licence raj era, it was common for firms to give one set of accounting documents to the sales tax office, another to the income-tax department and yet another to the banks from w here finances w ere sought. In those days, it w as

Related Documents