Wednesday, January 7, 2009

CEO's Role :Chief Executive Officer Or Chief Ehtics Officer .An Unique Case Of Mr.Ramalingam Raju Of Satyam Computers.

Mr Ramalingam Raju did he really played the role of the CEO , I mean Chief Ethics Officer.
In toady's management world, in a widely held public limited company Chief Ethics Officer and the Chief Executive Officer should be the same person.  Mr Raju was the Chief Executive Officer but not the Chief Ethics Officer.
Again and again it's being seen that "Integrity Scores Over Efficiency" in the long run.

The very episode of Satyam seems to be very interesting. In Sanskrit (Origin of all Indian Languages) it means truth.
I must say Mr .Ramalingam Raju has got the guts to say that he has done the fraud and has manipulated the accounts.The real Satyam from the founder of Satyams mouth  has come out.

In recent years we hear about the corporate Ethics and Corporate Governance, lot of emphasis are being given on this and the HR and Secretarial departments along with the vigilance department are major advocates for this.

In MBA course this subject is included and budding MBA's which they study with great care to pass the exam but in real life how many will be able to practice is a million dollar question.

It's not only with the Indian companies but also with major MNC's particularly the U.S. are recklessly did manipulations in their business precess.

Profit is not a dirty word it's the barometric measurement of efficiency of the management which is running the business.Profit can only come from the efficient and honest running of business coupled with acumen intelligence and sincerity.

Unfortunately we hardly find  any honest businessman, rather they are an extinct species.
Creation of shareholders wealth which one of the primary motto of the an efficient business is coming to a dead end.If the management is transparent and honest  the quantum leap in shareholders wealth may not be possible to create.  

Tax evasion and avoidance of tax , misappropriation of accounts , insider treading are rampant in corporates, along with the nexus with the FIIs and the I Bankers which can help in creating abnormal growth in share holders value.

It's the poor Innocent retail investors , vendors, employees gets the raw deal when a major corporate like Satyam sinks.

The customers are smart enough to scrap the deal or may not renew the next deal.Competitors are there who will snatch the account smartly from Satyam.

It's takes mammoth effort to make an organisation like Satyam which made every Indian and India proud.

It took Mr Raju long twenty years to build the empire , but it took only two weeks to finish it. 
Appetite for business growth is good but extreme form of  greed is not good ,you cheat yourself along with all your trusted stake holders. 
We all hope the Indian IT giant will come out like SAYTAM in a new integrated SATYAM way.

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