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Corporate Governance Failure at Satyam

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This case is about a US$1.4 billion corporate governance fraud at India's fourth-largest information technology company: Satyam Computer Services. The company offered IT outsourcing services to around 690 clients, including 185 Fortune 500 companies such as GE, Nissan Motors and General Motors. By 2008, Satyam was a global company operating in 37 countries.

The case traces the rise and fall of both Satyam and its founder, Raju, who was an important celebrity in corporate India. The case offers an opportunity to understand the various aspects of corporate governance and can be used to study the reasons behind corporate governance failures at a firm and the risks that it might face post-scandal. It will help students understand the role of a promoter, independent directors, auditors and the government in corporate governance failures. The case can also be used as a vehicle for teaching the theories of corporate governance.

Learning Objective:

1. Understand the fundamental concepts of corporate governance.2. Discuss the reasons behind the corporate governance failure at Satyam. 3.Analyse the implications of corporate governance failures.4.Examine the role of independent and non-executive directors. 5.Analyse the future prospects for corporate governance.

Year of Publication: 2010
Ref. No.: 10/475C
Discipline: Accounting & Control, Economics & Business Policy, Strategy & General Management, Social Enterprises & Ethics
Industry: Software & Services
Country: India
Company: Satyam Computer Services Ltd.
Languages: English
Pages of Text: 23