The media is overflowing with news on the Satyam fraud. How B Ramalinga Raju planned, controlled and innovated his managerial processes will go down as a classic case study on How to Fail in Business. Brand India has suffered. What is ironic is that Satyam was started by entrepreneurs who served as role models.
The key lesson: Corporate governance must always be on top of an organization’s agenda. Failing which, one must be prepared to risk sudden death.
Fundamentally, corporate governance implies management assuming the role of “trusteeship” with all the attendant checks and balances that can create a high performing organization. This was advocated by Mahatma Gandhi early in the twentieth century. These trustees must aim to deliver balanced results in the following dimensions:
- Customer satisfaction and loyalty
- Employee satisfaction and commitment
- Superior shareholder value
- Societal responsibility
In India, while the movement towards more effective corporate governance has gathered momentum, much remains to be done. In several cases this concept is being Read the rest of this post »