Failure of Corporate Governance in Satyam Computer Services Ltd.

Corporate governance means best practices of processes, rules, policies etc which affects the way a firm is heading, or being controlled. Corporate governance also says the relationships between the many players interested and the goals for which the corporation is governed. The Satyam Computer Services Ltd scandal has shown what bad or failure corporate governance can lead to. Satyam was always seen as one of the top Indian IT companies and often represented as shining example of Indian liberalization and entrepreneurship. This article explains effective corporate governance and indicates that failure in corporate governance is a major contributor to the credit crunch and consequently the financial turmoil in Satyam. Collapses like this demonstrate that regulatory boxes may have been ticked but fundamental principles of corporate governance have been breached. The article also explains how to avoid a Satyam.