You are on page 1of 14

 Data shows that between 2006-07, there were approximately

416,460 children employed on farms, with 54 percent


younger than 14 years of age.

 many farmers prefer to hire female children because girls


have more nimble hands and a better work ethic.  Using
children allow farmers to easily control them.

This study was commissioned by OECD Watch, Deutsche Welthungerhilfe, the India
Committee of the Netherlands, Eine Welt Netz Nrw, and the International Labor Rights
Forum.
According to the report, the vast majority of companies that were contacted refused to
respond to requests for information.
Out of 92 companies contacted, six companies and one public sector organization did
respond with company policies. The six companies include: Singapore Airlines, IBM,
McKinsey & Co. (Asia), The Body Shop, Shell, PricewaterhouseCoopers, and
International Enterprise Singapore.
HP spying scandal

 On September 5, 2006, Newsweek revealed that Hewlett-Packard's


general counsel, at the behest of HP chairwoman Patricia Dunn, had
contracted a team of independent security experts to investigate board
members and several journalists in order to identify the source of an
information leak. In turn, those security experts recruited private
investigators who used a spying technique known as pretexting. The
pretexting involved investigators impersonating HP board members and
nine journalists (including reporters for CNET, the New York Times and
the Wall Street Journal) in order to obtain their phone records. The
information leaked related to HP's long-term strategy and was published
as part of a CNET article
California criminal case

On October 4, 2006, California Attorney General Bill Lockyer filed


criminal charges and arrest warrants against Dunn, HP's former chief
ethics officer Kevin Hunsaker, and three outside investigators. The
complaint alleged the following four felony violations of the California
Penal Code:
 Conspiracy to commit crime in violation of Sections 182(a)(1)
 Fraudulent use of wire, radio, or television transmissions in violation of
Section 538.5
 Taking, copying, and using computer data in violation of Section 502(c)
(2)
 Using personal identifying information without authorization in violation
 American Airlines has had repeated run-ins with the FAA regarding
maintenance of its MD-80 fleet; the costs associated with operating these
jets has affected American's bottom line. American Airlines canceled 1,000
flights to inspect wire bundles over three days in April 2008 to make sure
they complied with government safety regulations.This caused significant
inconvenience to passengers and financial problems for the airline.
American has begun the process of replacing its older MD-80 jets with
Boeing 737s. The newer MD-80s will continue to serve until the next
generation Boeing narrowbody aircraft (Boeing Y1) is available.
 In September 2009, the Associated Press and The Wall Street Journal
reported that American was accused of hiding repeated maintenance lapses
on at least 16 MD-80s from the FAA. Repair issues included such items as
faulty emergency slides, improper engine coatings, incorrectly drilled holes
and other examples of shoddy workmanship. The most serious alleged lapse
is a failure to repair cracks to pressure bulkheads; the rupture of a bulkhead
could lead to cabin depressurization. It is also alleged that the airline retired
one airplane in order to hide it from FAA inspectors; the airline countered
that FAA inspectors always have full access to any airplane, retired or not.
 In May 2008, a month after mass grounding of aircraft, American announced
capacity cuts and fees to increase revenue and help cover high fuel prices.
The airline increased fees such as a $15 charge for the first checked bag
and $25 for the second, as well as a $150 change fee for domestic
reservations. American's regional airline, American Eagle Airlines, will retire
35 to 40 regional jets as well as its Saab turboprop fleet.
 AIG was required to post additional collateral with many creditors
and counter-parties, touching off controversy when over $100
billion was paid out to major global financial institutions that had
previously received TARP money. While this money was legally
owed to the banks by AIG (under agreements made via credit
default swaps purchased from AIG by the institutions), a number
of Congressmen and media members expressed outrage that
taxpayer money was going to these banks through AIG.
 Had AIG been allowed to fail in a controlled manner through
bankruptcy, bondholders and derivative counterparties (major
banks) would have suffered significant losses, limiting the amount
of taxpayer funds directly used. Fed Chairman Ben Bernanke
argued: "If a federal agency had [appropriate authority] on
September 16 [2008], they could have been used to put AIG into
conservatorship or receivership, unwind it slowly, protect
policyholders, and impose haircuts on creditors and
counterparties as appropriate. That outcome would have been far
preferable to the situation we find ourselves in now."The
"situation" to which he is referring is that the claims of
bondholders and counterparties were paid at 100 cents on the
dollar by taxpayers, without giving taxpayers the rights to the
future profits of these institutions. In other words, the benefits
went to the banks while the taxpayers suffered the costs.
Maytas acquisition
 In 2008, Satyam attempted to acquire (Maytas Infrastructure and Maytas Properties)
founded by family relations of company founder Ramalinga Raju for $1.6 billion, despite
concerns raised by independent board directors.Both companies are owned by Raju's sons.
This eventually led to a review of the deal by the government a veiled criticism by the vice
president of India and Satyam's clients re-evaluating their relationship with the company
Satyam's investors lost about INR 3,400 crore in the related panic selling. The USD $1.6
billion (INR 8,000 crore) acquisition was met with skepticism as Satyam's shares fell 55%
on the New York Stock Exchange.Three members of the board of directors resigned on 29
December 2008.
World Bank
 The World Bank had banned Satyam from doing business with it for 8 years due to
inappropriate payments to the World Bank's staff.The World Bank accused Satyam of
giving improper benefits to its (the Bank's) staff and of failing to maintain documentation
to support fees charged for its subcontractors. However, it clarified that Satyam was not
involved in incidences of data theft or malicious attacks that had been made on the Bank's
information systems.
Upaid lawsuit
 UK mobile payments company Upaid Systems is suing Satyam for over 1 billion US dollars
on complaints of fraud, forgery and breach of contract. on 9-December-2009 Satyam has
settled the lawsuit with UPAID for $70MM, of which $45MM is payable upon regulatory
approval, and the remaining $25MM is payable a year after the initial payment. The
settlement requires Upaid to give Mahindra Satyam a worldwide royalty-free licence on its
patents, and provides for the dismissal of all pending actions including the litigation
between the companies pending in the U.S. court.
Accounting scandal of 2009
 Main article: Satyam accounting scandal
 In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju
resigned after publicly announcing his involvement in an accounting fraud. Ramalinga Raju
is currently in a Hyderabad prison along with his brother and former board member Rama
Raju, and the former CFO Vadlamani Srinivas.

You might also like