Satyam and Corporate Governance

When I wrote my blog last month about Satyam and ironically, it getting the award for best corporate governance, I did not realise that it is going to be such a big fraud. It was a bolt from the blue for the corporate India.


Things are falling apart one after the other for the Corporate world. Governments are anxious to rush to the aid of the ailing companies and its failed executives. Very rightly there are articles which ask "where is the bailout package for the poor?". There is no doubt the resultant unemployment and drop in economic indices of the country are something to worry about. But, isn't our media and the entire 'thinking public' giving disproportionately high attention to this sector, compared to the big economic problems faced by poor people in different parts of the world?

I really liked Jayati Ghosh, the economist of JNU, Delhi raising an important question. "Why are food prices dropping now? All those allegations about India and China consuming more food being the reason for rise in food prices - what happened to this logic?"

Somehow, it sounded as if the corporate world's speculative tendencies are the reason for the food prices, though she didn't mention in so many words. Can we just say that when corporate world does not play around with food items, the prices will remain sane? I think so.

Stan mentioned that the foundation of corporate world is devoid of morality - that is the fundamental problem with world economy today. I completely agree.
When you club the mass-hysteria of mass-media and the pressure to show positive results quarter after quarter, we will get results only like Satyam. Everyone is paying for the greed associated with investments in stock market.

I am sure, now, we will pause a bit?