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-Benjamin Franklin
Corporate failures adversely affect the whole industry and a country as a whole.
India's biggest corporate scandal threatened future foreign investment flows into the country. Because of the Satyam scandal, Indian companies came under greater scrutiny by the regulators, investors and customers. It must be noted that corporate fraud impacts organizations in several areas: financial, operational and psychological. In fact, the impact of fraud on an organization can be staggering in terms of loss of goodwill, and reduced customer loyalty, and in this way, reduced market share etc. The paper covers the reasons responsible for corporate failures. The major Indian corporate scandal i.e. of Satyam computer services Ltd. and how in future these scandals can be prevented. Satyam is a case of a resounding failure in corporate governance in India. The Satyam fraud has shaken India's financial foundation by its sheer audacity, tenure and magnitude. It made all regulatory frameworks a mockery. It was the biggest corporate fraud in India's corporate history.
