Satyam Scandal: Lessons Entrepreneurs Can Learn
3. Corporate Governance Needs to be Stronger
Satyam Scandal is infamous as the biggest example of weak corporate governance.
Entrepreneurs must be careful when selecting executives and top level managers. These are the foundation of a company and if there's corruption at the top, it surely will be duplicated down. Each employee must be accountable for their actions, even if he is a new one. The role of CEO and Chairman of the Board must be separated. When the same person takes on both roles, there is no one to check up on the CEO.
2. Openness and Transparency
An entrepreneur must realise that in business there is no such thing as a standard contract and that any deal his company has negotiated can also be renegotiated. He should also keep in touch with the market while changing the delivery model as necessary so that he can stay in better control.
1. Build Relationships
The most important thing for an entrepreneur to understand is that business is people. He needs to understand which people are critical to the healthy performance of relationships and stay in close communication.
