This refers to the report "Union Bank doesn't want external agency to run Bhushan Steel" (September 6). The large size of an institution does not guarantee resilience since it has been already proved that "too big to fail" is a jaundiced view. The Satyam scandal - which would have not came out had Ramalinga Raju, the CEO, not confessed his crime - shows the extent to which the "boss" culture is prevalent in private institutions. The absence of a whistle-blower concept in private institutions makes it near impossible to find out to what extent information about the wrongdoings of a boss have trickled down the institution.
There is limited fungibility in a wrong decision taken by a CEO of a bank in respect to a loan since it cannot be related to all the other loan accounts of the bank due to the various levels of loan-sanctioning authorities in the bank. On the other hand, in case of an institution like Bhushan Steel, a poor corporate governance structure ensures the organisation is easily susceptible to the "boss" culture.
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
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There is limited fungibility in a wrong decision taken by a CEO of a bank in respect to a loan since it cannot be related to all the other loan accounts of the bank due to the various levels of loan-sanctioning authorities in the bank. On the other hand, in case of an institution like Bhushan Steel, a poor corporate governance structure ensures the organisation is easily susceptible to the "boss" culture.
Ravi Kant, Gurgaon
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number