BUSINESS ETHICSAnalyzing SatyamComputers CompanyuR00P NENBERS1. Deepak AGARWAL : Ethics, Business Ethics2. Neeta GUPTA : Satyam, Satyam Scam3. Jagannath DASH : Ethical Analysis of the Scam4. Praveer SAINI : A SatyamitesLetter IS EICS Set of principle prescribing behavior code that explain thatright and wrong. It is a body of standards of human conductsand governs the behavior of individuals and groups. Ethics involves learning what is right or wrong, and thendoing the right thing -- but "the right thing" is not nearly asstraight 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 morelegal and policies more socialB0SINESS EICS IN N 0RuNISI0N Ethics of accounting and financial information Ethics of human resource management Ethics of sales and marketing Ethics of productionINPLENENI0N BENEFIS 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 Indias 4thlargest IT company Leading Global consulting & IT service company Spanning 55 countries Founders - B. Ramalinga Raju & B. Rama Raju 24 June 1987CIEvENENS 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 2001SN IN SENSEXSNS 0NEICL BEvI0R Responsibility towards Clients Responsibility towards profession Responsibility towards societyRES0N 0F 0NEICL BEvI0R Individual driven unethical behavior. Lying Greed Bribery embezzlement System driven unethical behavior.-- As a wholeFR0N SNS 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 gulfShoulu Satyam be saveu at all costsYES- flagship of the Indian IT sector. - Government job towards IT industry.- 53,000 employees, share holders.ContNO- Satyam must pay for its actions.- Creating an example- Why cant it be Satyam ? SNIES 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--------------------------------------------------------------------------------------------------------------------------------------------------------------------C0NR0vERSIL INBEPENBEN BIREC0R 0N E B0RB 0F SN C0NP0ER SERvICESN. Mohan Rao - the dean of the high profile Indian School of Businessin 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 theHarvard 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 you