Professional Documents
Culture Documents
Inputs Analysis:
Key Questions
Key facts,
Key figures,
Key data,
Key
information
Type
of
Analy
sis
Descri
ptive
Ethical
Analysis
Descri
ptive
Timeline of
key events
Descri
ptive
Explanation
s of SOPE?
Key
explanation
?
Analyti
c
Analyze
SOPE
Classify
SOPE
Categorize
SOPE
Characteriz
e SOPE
Problem
The analysis is
based on
our objective
understanding of the
case
facts and additional
research on events
that took place in the
aftermath. We have
highlighted the key
events and
circumstances crucial
to our ethical
analysis.
The analysis is
based on
our objective
understanding of the
case
facts and additional
research on events
that took place in the
aftermath. We have
highlighted the key
events and
circumstances crucial
to our ethical
analysis.
We have given an
objective view of
the situation and
related case
facts and remain
unbiased in our
opinion. We have
tried our best to
include all major
antecedents,
determinants,
concomitants and
contingencies.
Analyti
c
The occurrence of
both
the determinants
caused the problem
to snowball
Analyti
c
Classification has
been
done based on
factors intrinsic to
a person and
externalities
Analyti
Identification; Key
Problems?
Underlying
key
problem?
Problem
Formulatio
n
independent of each
other
Analyti
c
Analyti
c
Analyti
c
Analyti
c
Optimal
strategy
Analyti
c
Optimal
implementa
tion
Inferen
tial
Consequen
ces
Analyti
c
Optimal solution
takes a pinch of all
the dimensions and
thus has huge
potential to be a right
and optimum mix
Strategy takes care of
all aspects of
development and
hence ensures
sustainable
development.
The optimality
includes
social, moral, ethical
and human
dimensions
Effective Ethical
systems
rather than policing
should withhold the
spirit
of governance
Problem
specificatio
n
Problem
solutions
alternative
s?
Optimal
problem
solution
Learning
Reflect
ive
By incorporating good
values and culture in
a person through our
education system
Analyze SOPEprocesses
from an ethical and moral
perspective
Categorize SOPEprocesses
from an ethical and moral
perspective
Ethical Analysis
B Ramalinga Raju admitted that to counter dot.com bubble burst and market share erosion
he had to forge the Satyam Accounts
Satyam board rejected the proposal for merging Maytas, but Raju wanted to use asset of
Maytas to regulate Satyam books
Roles and responsibilities of independent directors under question
Investors lost billions of dollar, they lost their confidence in Satyam
The board of Satyam was resolved and government formed a new board to save the
company
Legal: Financial transactions were being carried out in the firm and approved against the
law. Moreover, the BoD should have been independent from the managerial positions.
Social: A company is responsible to provide returns to its shareholders in the long term.
Scam vanished earnings of shareholders and tarnished the image of entire IT industry
Moral: A company which has raised capital from shareholders especially minority
shareholders is responsible to serve their interest first. In Satyam, the ultimate purpose
seemed to serve the promoters of the company many of which were also the owners.
Auditors could not identify the inconsistencies and irregularities and easily escaped their
responsibility during the turn of events. The Board of Directors also approved controversial
decisions without any questioning.
Auditory lapses, auditors not following code of conduct and auditing standards
Antecedents: Ramalinga Raju wanted to keep investors happy with inflated profits on
Satyam books
Determinants: Board of directors not effective, power within hands of Ramalinga Raju;
Auditors were not true to their job
Explanation of
Harmful
consequences
with respect to
SOPE
Classify,
Categorize &
Characterize
consequences
Intended and
unintended
consequences in
relation to SOPE
Teleological
analysis of the
consequences
Thousands of employees faced looming job loss threat. Market Capitalization of Satyam plummeted
and investors faced huge losses. Indian IT industry also suffered a loss of trust in foreign market.
This case clearly shows how well-educated responsible men
broke all ethical standards without thinking of the consequences. It brought to light the loopholes
in the Board of Directors (BOD) and corporate governance model under enquiry.
Consequences for internal stakeholders: Job loss for employees and loss of trustworthiness
Of the management.
Consequences for
external
stakeholders: Loss of Clientele, huge losses for
shareholders and other investors and a significant loss of trust for Indian IT industry
Intended consequences: Satyam showed inflated profits and gained investor confidence with
rise in stock price. Ramalinga Raju extracted outrageous money
Unintended consequences: Annihilation of market capitalization of Satyam stock, Job losses to
numerous employees, loss of contracts for Satyam and loss of investor confidence in Indian IT
The bulk of the stakeholders mostly shareholders, employees and investors had immense
losses as compared to the huge profits earned by the few people involved in the scam like
Ramalinga Raju and his family members.
These losses could not be remunerated even after law proceedings and trial.
Deontological
analysis of the
consequences
The shareholders have a right to transparent information and best possible returns on their capital.
In this case, these rights were repeatedly violated before the scandal was out in open. Few at the
helms of the affairs abused their powers and highly abused the rights of majority.
Distributive
justice based
analysis of
There was no distributive justice as the distribution of profits was entirely inequitable and
lop-sided. Significant consequences were faced by the majority including shareholders, employees
and investors. The irregularities lead to a loss for all the shareholders at the end.
consequences
Corrective
justice based
analysis of the
consequences
Virtue-ethics
base analysis of
consequences
Trust-ethics
based analysis
of consequences
Stock markets never care about the principle of corrective justice and this scam was no exception.
The shareholders suffered the losses due to the negligence and greed by few who lost minimal.
These losses could not be compensated even after acquisition of Satyam by Mahindra.
From a virtue-ethics perspective, the outcome was not justifiable. The shareholders, investors and
clients were not benefitted in any way despite holding some power and influence.
The whole scam resulted out of the blind trust rested by shareholders on the
BoD. This had repercussions on the overall trust of clientele of Satyam as well as the entire Indian
industry. Most employees were left in a chaos with looming threat of loss of jobs.
Hindsight
Versus foresight
analysis of the
Problem resolution
In retrospection, it can be understood that even the most educated, well qualified and successful
person can act in their self-interest and break all ethical standards and responsibilities. They
completely ignore the rights of the majority including shareholders, employees and clients for
getting monetary benefits. The companies under NASSCOM in collaboration with the Government
need to come together and develop a robust system and firm guidelines for guidelines to prevent
such frauds.
Assurance of
Learning
As the consequences of such a scam are almost impossible to undo, preventive mechanisms should
be developed to avoid such incidences. In a thriving economy like India, with so much reliance on
foreign investment, Govt. and authorities cannot afford such loss of jobs and shareholder
value. Companies should act in a socially responsible, moral and ethical manner.
Ramalinga Raju
Auditors of Price
Waterhouse
Independent Directors
Inputs Analysis
Ethical Analysis
Key explanation?
Antecedents:
Oppression
and
racial
prejudice leading to the rise of a man as
fighter against injustice & hostilities.
Determinants:
Killing of 69 peaceful
demonstrators, injustice to blacks, his wrong
imprisonment and Mandelas rise taking along
peoples support.
Concomitants: Fight against inequality,
strong will power and false charges put;
Circumstances: Unfairness, injustice in the
society.
Critical
Contingencies:
He demanded
freedom and not thinking about another reign
as president.
Analyze SOPE
Classification,
Categorization and
Characterization of
SOPE
Problem
Identification
Key Problems?
Underlying key
problem?
SOPE analysis
Timeline of key
events
Problem
Formulation
Problem
Specification
extensive.
Problem solutions
alternatives?
Optimal problem
solution
Optimal strategy
and
implementation
Consequences
Learning
History or
narrative of key
SOPE elements
Explanation of the
SOPE narrative
from an ethical
and moral
perspective
Process Analysis
Ethical Analysis:
Problem SOPE
Characterization
from an ethical
and moral
viewpoint
Problem SOPE
Formulation from
ethics theory
perspective
Problem SOPE
Formulation from
moral theory
perspective
Characterize SOPE
from an ethical
and moral
perspective
Problem solutions
alternatives?
Learning
SOPE
Analysis:
Beneficial: Major outcome was peaceful cooperative movement which finally led to end of
apartheid and election of first black president of the richest African country. Nelson and de Klerk
shared peace noble prize in 1993, Truth and Reconciliation Commission was established and lead to
positive outcomes in discovering the atrocities committed during apartheid by the ruling
government and opposition; Human thinking changed as Mandela set example of generosity,
conviction and forgiveness in front of the whole world.
Harmful- Mandelas personal life suffered because of this long road to struggle. His critiques believe
that upbringing of the downtrodden black community could have been faster and white people
complained of corruption and crime. Mandelas baton could not be carried forward successfully.
Subject: Primary subject in this case is Mandela himself who led a long and peaceful struggle
against the institutionalized discrimination and atrocities being carried out in his nation
Object: People of South Africa, primarily the majority black population, are the objects in this case
along with the whole world which witnessed this revolution
Properties: The qualities of conviction, honesty, mental strength, integrity and perseverance were
displayed by Mandela in his quest for freedom for his people. At no time was his heart filled with
feeling of hate or redemption.
Events: Primary events that need to be analyzed start right from the point when Mandela
cofounded and started leading ANC. His creation of armed wing of the party, his imprisonment on
being accused of conspiracy against the government, his refusal to accede to then presidents
demand and choosing to stay in prison, end of apartheid, his winning of presidential election upon
release, establishment of Truth and Reconciliation Commission and winning the Noble Peace Prize
are the major events to be analyzed.
Timeline of key
events that led to
beneficial or harmful
consequences
Antecedents
Explanation of
negative
consequences in
relation to SOPE?
Classification,
Charachterization
and Categorizaion of
harmful
consequences in
relation to SOPE
Intended and
unintended
consequences in
relation to SOPE
Teleological analysis
of the consequences
Deontological
analysis of the
consequences
Distributive justice
based analysis of
the consequences
Corrective justice
based analysis of
the results
Virtue-ethics based
analysis of results
Trust-ethics based
analysis of the
results
Analysis through
Intended Cosequence: It should be noted that Mandela was given an option getting free from prison
if he renounced his struggle however he refused and asked the government to end apartheid first.
Thus the intended consequence of his decision to stay in prison was- increased solidarity with
Mandela worldwide; display of his strong willpower and conviction; end of apartheid;
Unintended Cosequence: Unintended consequence took heavily on personal life of Mandela who
witnessed multiple divorce and partial loss of his vision in prison.
Mandela was surrounded by controversies but the political scenario of his country at that time
justifies it and as far as the purpose of all his action goes- it was betterment of his people and
protection of both black and whites. Therefore, his actions are completely justified when analyzed
through doctrines of teleology.
When ethically judged through the actions and not through consequence of these action, Mandela
fares rightly thorough out except a few exceptions. He started an armed wing in ANC and
subsequently a military wing rebutting the oath of non-violence he took as an in-effective weapon.
Apart from this rare occurrence, Mandela stuck to the ideals of non-violence, forgiveness,
conviction and perseverance.
Mandela in his legendary 4 hour speech in court during the Rivonial Trial, explicitly mentions that
he was fighting against white domination and black domination. He was fighting against apartheid
which was a major cause of inequality in South Africa and hence his actions are completely justified
on these grounds
Corrective justice doctrine provides for the maintenance of the original status of the parties and
hence this was the very notion to be challenged by Mandela. To dissolve the gap between the
blacks and whites was the whole purpose of the revolution.
Ethically, Mandela and his action were always in consonance with the universal moral principles
and adhered to them till the very end. His focus on non-violence, equality and freedom served as
an inspiration for the world throughout.
One crucial point to be noted in case of Mandela was the he was able to secure the trust of both
the whites and the blacks in South Africa. He shared the noble peace prize with de Lierk and this
was possible because he won his trust.
The Mandelas revolution stands justified both in hind sight and foresight.
Dimension of Ethics of
Trust Explored
References:
1. http://www.dnaindia.com/money/report-all-that-you-need-to-know-about-the-satyam-scam2067138
2. http://www.livemint.com/Companies/h785U22XrP2Il9m4UyrAKP/Satyam-verdict-BRamalinga-Raju-9-others-held-guilty.html
3. http://www.reuters.com/article/2015/04/09/satyam-computer-fraudidUSL4N0X630Q20150409
4. http://phys.org/news/2015-04-india-court-convicts-ex-satyam-chief.html
5. https://en.wikipedia.org/wiki/Satyam_scandal
6. http://www.npr.org/sections/parallels/2014/05/06/310095463/20-years-after-apartheidsouth-africa-asks-how-are-we-doing
7. https://en.wikipedia.org/wiki/Inequality_in_post-apartheid_South_Africa
8.
http://www.theroot.com/articles/culture/2015/02/south_africa_s_born_frees_demand_more.htm
l
9. http://www.theguardian.com/world/2014/dec/06/south-africa-one-year-after-nelsonmandela-death
10. http://www.economist.com/news/middle-east-and-africa/21591643-nelson-mandela-setstandard-his-successors-have-struggled-match