The annual report (2007-
08) of Satyam Computer
Services Ltd., says on the question of corporate
governance, the following: "The Company's goal is to find creative and
productive ways to delight its stakeholders. Thereby fulfilling
the role of a responsible corporate representative committed to
best practices."
But the recent events or discoveries about this company
do not exactly match this assertion. Satyam is essentially a case of
corporate misgovernance. It has no doubt exhibited creative and
productive ways in falsifying accounts and most certainly,
diverting huge amount of company funds. In this process, it has
not delighted its stakeholders, but deceived them. Nor it has
fulfilled the role of a responsible corporate representative committed to
the best practices, as it followed highly questionable and irregular
practices with mala fide intentions.
To begin the story, Satyam Computer Services Ltd. is a
major player, the fourth largest in India, with global operations
in Information Technology business that deals with system
integration and consultancy besides providing outsourcing solutions to its
clients in over 20 industries. Its operations extend into 65 countries.
Established two decades ago, its employees are over 50,000.
Satyam calls its employees as associates, whose key capabilities are in
diversified fields of engineering and product development,
supply chain management, client relationship management,
business process quality, business intelligence, enterprise integration,
infrastructure management, etc. Its client base is about 700,
including 185 Fortune 500 companies. Its important operations are
in major economies like the US, Canada, Brazil, the UK,
Hungary, Egypt, UAE, China, Malaysia, Singapore and Australia. It is
a pioneer in business process outsourcing activities. It is one
of the first Indian corporates to be listed on the New York Stock
Exchange and also on the European exchange. |
