When the west is gearing up its management fashion towards business ethics, India Inc. has delivered exceptional case study to consider. Satyam!!! which means truth has forget its values and started falsifying its audit books. The factor to consider is that the company is 4th largest in India. What a tragic failure this is for India Inc and its reputation in global market.
The company's home page says that the company focus to delight its investors, assure its customers, and empower its staffs. Looking deep into the company's failure it can be speculated that the company believed in financial returns for its stockholders. The reason could be seen as greed, inability to have creative ideas to grow business, lack of strategic vision, poor leadership styles. I once read that the culture in Satyam is entrepreneurial in nature. It was mentioned that the company has built more leaders for future business and runs its business units as a separate business. With such a model followed I am wondering how it becomes possible to falsify the fact sheets without the knowledge of others. If Ramalinga Raju is the lone man to perform such a huge fraud, I question this. In my point of view this is a group activity. Without the knowledge of other leaders in the company such a big scam is impossible. However, India being a company where accepting a scam or involving in scam is considered as sin, I believe without proper investigation it is difficult to point anybody involved in this activity.
I am still wondering how bad a company goes to compete in this market. I believe that this is due to the short term strategy that the company had instead of long term vision. This also reveals that there is serious issues with Indian Corporate governance and strategic business evaluation methods. India Inc. need to have greater focus towards developing a model for the evaluation of board. The Golden peacock corporate governance model is good to adhere from European foundation for quality model, however, there is a gap in this model in terms of business ethics which is considered as the latest management fashion. Atleast now whoever be the company who awards golden peacock corporate governance can consider to include this ethics of doing business in evaluation.