The Satyam Computer Services scandal was publicly announced on 7 January, 2009. The chairman of the leading Indian outsourcing company SCS, Mr. Ramalinga Raju confessed that he systematically falsified company’s financial accounts. The company served some of the largest banks and media companies including Nestle, General Motors, General Electric, etc.

Mr. Raju was compelled to resign after he admitted the allegations as the company grew from an insignificant number of employees to a back office giant with over 55,000 workers with operations in around 60 countries. According to the allegations, $1.04 billion out of the total fraud money (1.40 billion) in cash and bank loans listed as assets, turned out to be non-existent.

In his LETTER to the board, Raju described a small discrepancy that grew out of his control. He claimed ‘What started as a marginal gap between the actual profit and the one in the books, continues to grow over the years’

The Satyam Scam has been an eye opener for most people. As correctly pointed out by McLeod, ethics form an integral part of how an firm works. One can hit a jackpot by following unethical ways to earn money in a short period or go with the ethical way of earning money, as well as, goodwill and respect in the market.

SOURCE : NY TIMES