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Created by : Sudeep Tarafdar, Senior Consultant, IBM  | 11 19 2009 06:56:54 +0000
Industry : Management & Strategy ConsultingFunctional Area : India(Markets)
Activity:  293 views;  last activity : 07 06 2010 20:18:09 +0000

According to a study, CEOs are less likely to pursue actions that advance their interests at the expense of the organization and its stakeholders. But in Indian context, the matter is completely opposite. A few days back we saw the examples of Ramalinga Raju, the Founder and Chairman of Satyam Computer Services, an alumnus of the Harvard Business School as well as the winner of several awards and global accolades, such a man also did a corporate scam of $2 million US dollars just for personal interests. Another case is of Sanjay Kumar, a former Indian CEO of Computer Associates, did an accounting fraud of $52 million over a period of 2 years



It seems that a CEO who identifies strongly with his or her firm will see nothing wrong with using the company resources for personal use, but our findings suggest the opposite to be the case. Such executives tend to shun lavish perquisites that shareholders and the public resent, perks which is associated with significant under-performance of company stock. CEOs with strong company identification also tend to avoid corporate strategies that are likely to be at odds with the interest of shareholders. They are less than half as likely as CEOs with weak company identification to increase their companies' level of unrelated diversification, a strategy that the study characterizes as a form of corporate empire-building, associated with lower financial performance, lower stock prices, and greater institutional pressure to divest.

So friends, according to you, What comes first for Indian CEOs - company or self?

 
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Company Vs Self
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No matter there are scandals by two Indian CEO. But because of this, we cannot blame all the CEOs as a whole. Still today, there are so many CEOs in India, who think about their company first before think about themselves. They never make any decisions on the cost of their company. Just by one or two scams made by Indian CEO's one can't make a viewpoint of entire Indian CEO's . Consider People like Nandan Nilkeni and others. They have been a great source for transforming India. As rightly said by someone, its not about the Indian CEOs Ultimately its up to the individual character which decides whether he puts himself before his organization or vice versa...


By Veena Gupta, Analyst, Blackstone Group  | 11 19 2009 07:10:42 +0000
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Mr. Ramalinga Raju and Mr. Sanjay Kumar are clear cut examples of curroption by modern Indian CEOs. Whatever they have done clearly shows that today's Indian CEOs think only about themselves. Not about the company.If Indian CEOs put themselves before their companies. scandals like Satyam's will come out slowly. Just wait for it. There are lot of frauds out there in the Indian corporate world. In Small companies CEO spends all d money for self and puts pressure on the employees and never give hike to them. They have a great 2 words called RECESSION and COST CUTTING. Given the opportunity, every man has the potential to rob for personal gain. But we as Indians, every single one of us, only think about ourselves and have absolutely no consideration for others. We just don't think about others, how can we concentrate about the Company! Otherwise our traffic on the road would have been very disciplined....


By Sudeep Tarafdar, Senior Consultant, IBM  | 11 19 2009 07:12:49 +0000
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