BUSINESS ETHICS

Analyzing Satyam
Computers Company«
uR00P NENBERS
1. Deepak AGARWAL : Ethics, Business
Ethics
2. Neeta GUPTA : Satyam,
Satyam Scam
3. Jagannath DASH : Ethical Analysis
of the Scam
4. Praveer SAINI : A Satyamite¶s
Letter
IS EICS ǫ
Set of principle prescribing behavior code that
explain that
right and wrong. It is a body of standards of
human conducts
and governs the behavior of individuals and
groups.
Ethics involves learning what is right or
wrong, and then
doing the right thing -- but "the right thing" is
not nearly as
straight forward as conveyed. Most ethical
B0SINESS EICS
‡ Business ethics involves set of actions that
make company more favorable to public
and employees.
‡ It defines the code of conduct for
employees
‡ It makes the company activities more
legal and policies more social
B0SINESS EICS IN N
0RuNISI0N
‡ Ethics of accounting and financial
information
‡ Ethics of human resource management
‡ Ethics of sales and marketing
‡ Ethics of production
INPLENENI0N BENEFISǥ
‡ Enhanced reputations and good will
‡ Reduced risks and costs
‡ Protection from their own employees and
agents
‡ Stronger competitive positions
‡ Expanded access to capital, credit, and
foreign investment
‡ Increased profits
‡ Sustained long-term growth
‡ International respect for enterprises and
SN C0NPN
‡ India¶s 4
th
largest IT company
‡ Leading Global consulting &
IT service company
‡ Spanning 55 countries
‡ Founders - B. Ramalinga Raju &
B. Rama Raju
‡ 24 June 1987
CIEvENENS
‡ First Indian internet company in NASDAQ
‡ Started Satyam Renaissance, Satyam Info
way, Satyam Spark Solutions and Satyam
Enterprise Solutions and Info way
‡ Customer-Oriented Global Organization
training in May 2000
‡ Contracts with Microsoft, Emirates, TRW, i2
Technologies and Ford
‡ First ISO 9001:2001 company in the world,
certified by BVQI, winning the Frost &
Sullivan Award for Competitive Strategy in
ASP in 2001
SN IN SENSEX
SNǯS 0NEICL BEvI0R
‡ Responsibility towards Clients
‡ Responsibility towards profession
‡ Responsibility towards society
RES0N 0F 0NEICL
BEvI0R
‡ Individual driven unethical behavior.
± Lying
± Greed
± Bribery
± embezzlement
‡ System driven unethical behavior.
-- As a whole
FR0N SNǯS P0IN 0F vIE
‡ Increasing competition forced big corporations to
do something beyond their reach.
- Tata Consultancy Services
- Infosys Technologies
- Wipro
annual 50-per cent increases in profits every
quarter.
‡ Pressure to maintain this pace of growth.
‡ Gap became a gulf
Shoulu Satyam be saveu at all costsǫ
YES
- flagship of the Indian IT sector.
- Government job towards IT
industry.
- 53,000 employees, share holders.
Contǥ
NO
- Satyam must pay for its
actions.
- Creating an example
- Why can¶t it be Satyam ?
SNIEǯS LEER
‡ Satyam had given employment to a huge
unemployed mass.
‡ Putting somehow a lesser minimum criteria.
‡ Raju donated Rs 12,000 crores from his
personal pocket to give the January salary
of his Satyam employees during this debacle.
Who is responsible for ethics in the
company according to her ?
everyone«
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C0NR0vERSIL INBEPENBEN BIREC0R 0N
E B0RB 0F SN C0NP0ER SERvICES
N. Mohan Rao - the dean of the high profile Indian
School of Business
in Hyderabad.
Krishna Palepu ± PGDM from IIM, PhD. From
Massachusetts.
Director of research in the
Harvard Business school.
Ramalingam Raju - MBA from Ohio and has
done a course in the
Harvard Business School.
« elite people
S00LB BE B0NE
‡ management education + ethos
‡ business of education not education of
business
‡ Window dressing of balance sheets
‡ Ethics code in B-schools
‡ Corporation ± an artificial person
‘™ ca ™e save t ics i si ess
‡ Tighter rules for accounting & corporate
governance.
‡ Appointment of independent directors by
selection committees.
‡ Better regulatory & government
authorities.
‡ Quick publication of annual report.
Thank you͙