University of The Cumberlands Corporate Governance Failure at Satyam Case Study
Description
PowerPoint requirement:
- Introduction slide (Case study name, team names)
A brief synopsis of the case.
- Minimum of 1 slide for each case study question.
Conclusion slide.
Case Synopsis: 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. Analyze the implications of corporate governance failures.
4. Examine the role of independent and non-executive directors.
5. Analyze the future prospects for corporate governance.
Case Study Question
- What issues does this case pertain to? Or what is the case about?
- Who are the key players in the case?
- What are the reasons behind inadequate corporate governance failure?
- What is the role of independent and non-executive board members?
- What is the role of independent and non-executive board members?
- Are there any lessons to be learned from the case for the future prospects of corporate governance?
- Explain the theories of corporate governance with reference to the Satyam case.
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