The paper "Satyam the Enron of India" is a perfect example of a management case study. Satyam indignity raises grave questions concerning the MBA customs and industry management culture. When thought about more seriously, one of the contentious director a member of Satyam organizations board, Mr. N. Mohan Rao, was once the dean in one of the highly regarded business schools in India. He stepped down when he was compromised in the Satyam scandal. Questioned have been raised about his involvement in the 7000 Rs that were embezzled during one of the deals between the company and Maytas (Bhandari, 2009).
The reason why this was one of the main forces while investigating him Satyam scandal was because he chaired the meeting and was one of the primary benefactors. Ramalingam Raju, the mortified chair of the company, also earned his MBA from Ohio. He also did a course in the prominent Harvard Business School. The most distressing questions now are how people like him who have earned high-education standards from some of the best management and business schools in the world be caught up in such conducts that questions one's ethics.
Many ethical scholars point to the fact that most business and management schools are least concerned with business ethics (Craig, 2009). One of the most conclusive theories that can be related to the Satyam scandal is that the MBA culture is not. The manager Ramalingam Raju was more concentrated on making money that he became pulled In the middle of all of it. The problem is the company's management begun when the board of management got their priorities mixed up between making while more money for themselves and running the company.
The fact that men like Ramalingam Raju and many more who have learned from what is supposedly the best management schools in the world were involved in scandals like this tells more of what the education offers (Fernando, 2011). The proposed theory in this article is the MBA culture is on a downward trend due to the lack of ethical concern on the part of the schools that teach this. The internal root of the company’ s problems emanated from individuals meant to be auditing the company’ s books.
They might have been got caught up in the middle of all of this or were not qualified enough to carry out the auditing (Varun, 2002). The Satyam scandal can be termed as one of the biggest to be eve exposed in India considering that the company almost put the country in an economic problem. The scandal main cause in this article will be identified in two main methods. First, the article will look at the problem in an internal way. Here, the article will identify ways in which the internal factors led to the scandal.
The internal factor includes factors such as financial scheming, auditing defaults, and book cooking. In the financial world, book-cooking is a term used to refer to the changing and falsifying of account books and ledgers. Managers usually do this to hide the true results from the companies shear holders or as a way of embezzling funds from the company (Kohli & Sood, 2010).