(Published in The Manila Times under the Managing for Society column, January 27, 2009) When Ramalingam Raju, chairman and CEO of India’s fourth largest outsourcing vendor, Satyam Computer Services, admitted on January 7, 2009, that he had illegally boosted the company’s earnings numbers and created a fictitious cash balance of more than $1 billion, the corporate world was shocked by the weak, if not the lack of corporate governance in one of India’s most admired firms. Like a prognostication coming true, the World Bank banned Satyam in 2008 from participating in its procurement contracts for eight years, when it discovered Satyam employees had accessed sensitive information in its database. In 2003, Satyam won a lucrative five-year “sole source” contract to design, write and maintain all of the World Bank’s information systems. The contract, which began at $10 million, had grown to over $100 million by 2007. In 2008, the contract was not renewed. The Indian corporate governance crisis...
This blog features a collection of my articles, essays, and research studies on business, management, and social issues and subjects published in local (Philippines) and international publications. It also includes selected speeches and talks to academic and professional audience. (The views and comments in this blog do not reflect those of my past, present, and future employers)