“Will The Satyam Debacle Really Harm Indian Business?”
In a bylined article in the Jan. 15 issue of Livemint (India), Booz & Company Partners Suvojoy Sengupta (India) and Vinay Couto (North America) wrote that the current troubles of Satyam “should be seen as a timely wake-up call” for Indian companies. “The issue is one of execution and operationalization of governance practices, rather than lack of governance mechanisms,” the authors argue in setting an agenda to ensure that companies avoid a similar fate. “In the near term, relevant authorities must ensure ruthless and timely action against proven wrongdoers in Satyam according to applicable laws. This will help restore the perceived erosion of trust, and also make the consequences of white collar crime crystal clear.” For the medium term, Sengupta and Couto urge Indian companies “to adopt a robust code of conduct for effective operationalization of corporate governance requirements. Such a code, they add, “should bring greater clarity on duties and obligations of management, directors, committees, and external auditors, and the consequences of not discharging the obligations adequately.” Sengupta, based in Mumbai, leads Booz & Company’s India operations; Couto, based in Chicago, heads the firm’s outsourcing advisory practice.