THE BEST AMONG INDIAN CORPORATES

Presented by:
Shraddha 06
Sanket 19
Sharanjeet 34
Darshak 38
Kanika 42
Manjunath 56
Pratibha 58
Profile of Narayana Murthy
 Born on August 20, 1946
 N.R. Narayana Murthy is a B.E.
Electrical from University of
Mysore (1967) and M.Tech from IIT
Kanpur (1969).
 Narayan Murthy began his career
with Patni Computer Systems in
Pune. In 1981,
 Narayana Murthy founded Infosys
with six other software
professionals. In 1987, Infosys
opened its first international office
in U.S.A.
 PROFILE
 Infosys Technologies was started in 1981 by seven
professionals with US $250.
 The company designs and delivers technology enabled business
solutions.
 Infosys pioneered the Global Delivery Model (GDM
 Infosys has a global footprint with over 50 offices and
development centers in India.
 Infosys takes pride in building strategic long-term client
relationships.
 In 1997 & 1996, the readers of Asiamoney voted Infosys “The best
managed company in India
 To be a globally respected corporation that
provides best of-breed business solutions,
leveraging technology, delivered by best- in-
class people”.
 “To achieve our objectives in an environment of

fairness, honesty and courtesy towards our

clients, employee’s vendors and society at large”.

3 pillars of corporate behavior, Viz.,

 Business Ethics,
 Corporate Governance
 Corporate Social Responsibility.
Growth story Of Infosys Technologies
Customers
as on 31st March 2008
538*
Market
Capitalization

US $20.2 billion*
Revenue

US $4,176 million**
Net
income
US $1,155 million**
Global
presence
63 cities across 26 countries

Employees

91,187*

Company
Started in 1981,with seven founders, US $250,and a dream
Value System at Infosys Technologies

Fairne Pursuit of
excellence
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 DEFINING ETHICS

• Understanding right and wrong

• Ability to distinguish between the right and wrong

• Integral Part Of Life

• Running a Business is Part of Life

Corporate Ethics

Based On the principle of integrity and fairness

 Focuses On- Stake holder and employee

 Quality Of product And services

 Customer Satisfaction.

 Community And environment

 Corporate Governance

A system of checks and balances between the

board, management and investors to produce
an efficiently functioning corporation, ideally
geared to produce long-term value.
 Corporate Governance Philosophy
 The philosophy of corporate governance is based on the
following principles.
– 1.Satisfy the spirit of the law
– 2. Transparent and high degree of disclosure levels
– 3. Distinction between personal conveniences and corporate
resources
– 4. Truthful external communication
– 5. Comply with laws of all countries in which the company
operates
– 6. Simple and transparent corporate structure driven solely by
business needs
– 7. Management is the trustee of the shareholders’ capital and
not the owner.
 Unique Practice

 The Infosys Technologies believe that the Board of Directors is at the

core of corporate governance practice

 Oversees how management serves and protects the long term interest
of all stakeholders.

 Active and well informed and independent board is necessary to ensure

highest standards of corporate governance.

 The majority of the, 8 out of 15 are independent members.

 Infosys is committed to long-term shareholder value.

 Infosys has audit, compensation, investor grievances, nominations,
and risk management committees which comprises only independent
directors.

 Furnish in the annual reports about its compliance with the corporate
governance guidelines of six countries in their national languages.

 The company comply with Euro shareholders corporate governance

guidelines, 2000.

 The recommendations of The Conference Board Commission on

public trust and private enterprises in the US.

 The company also adheres to the UN global compact programme.

 CSR Initiatives of Infosys
 At Infosys, the distribution of wealth is as important as its legal
and ethical creation. A strong sense of social responsibility is
therefore an integral part of its value system.

 Infosys Foundation
Established in 1996, supports programs and organizations devoted to
the cause of the destitute, the rural poor, the mentally challenged, and
the economically disadvantaged sections of the society.

 Community service
Through its Computers@Classrooms initiative launched in January
1999, Infosys donated 2,567 computers to various institutions across
India.
• Environment
Infosys is engaging with global thought leaders and decision-makers in
debate and actionable programs to identify and drive the implementation
of sustainable ways to manage the consumption of energy and resources.
The efforts begin right at home, through Project Ozone.

 Social commitment in education

Infosys' Education & Research group has the pride of anchoring the
Infosys Extension Program (IEP), which consists of the Infosys Fellowship
Program, Rural Reach program, Catch Them Young and Train the Trainer.

 Sustainability Report
Infosys has published its first Sustainability Report, 2007-2008. In
accordance with the Global Reporting Initiative (GRI) framework, the
report encapsulates the company's economic performance, innovation in
offerings, people engagement, and corporate social responsibility
initiatives, and has been awarded an A+ rating by the GRI.
 Corporate Governance
achievements and Ratings
 In 2000, the company was conferred the National Award for Excellence in
Corporate Governance by the Government of India.

 The Business World — IMRB Survey ranked Infosys number one among
the most respected companies in India, in 2001.

 It was voted as India’s best managed company for 6 years in a row,

between 1996 and 2001 by the Asia Money Poll.

 In the year 2000, in the survey of Far Eastern Economic Review, Infosys
was selected as one of Asia’s leading corporations and was ranked first as
“The Company that Others Try to Emulate”.

 The company was voted “India’s Most Admired Company” in Economic

Times in 2000.
 In 2003, Infosys Technologies co-founder and chairman, Mr. N. R. Narayana
Murthy, won the Ernst & Young World Entrepreneur of the Year award for his
company’s “outstanding financial performance and global impact in a dynamic
and volatile industry”.

 Infosys Technologies has won the prestigious “Global Most-Admired

Knowledge Enterprises (MAKE)” Award, for 2004.

 Infosys Technologies made a winning sweep in the Business World “Most

Respected Companies’ Award” 2004.

 The latest Business Today—AT Kearney study conducted in March 2005 placed
Infosys Technologies as “India’s Best Managed Company”.

 CRISIL assigned the company the “CRISIL GVC Level 1” rating, indicates the
capability to create wealth for all stakeholders while adopting sound corporate
governance practices.

 ICRA assigned “CGR 1” rating to the company corporate governance practices.

The Phaneesh Murthy
Case
In dec. 2001, former Infosys employee
Reka Maximovitch, a Bulgarian
American national filed a complaint
against Mr. Phaneesh Murthy (head of
U.S. Operations and member of BOD)
alleging verbal sexual harassment,
unwanted sexual advancements and
unlawful termination of employment.

Infosys started an internal settlement

and after initial reluctance Phaneesh
submitted himself for all the
conditions that company had set.

Infosys announced amicable dispute

settlement on 11th May 2003 and Reka
was paid $3 million as compensation.
 The company had paid $570,000 to Phaneesh Murthy as part of
the final settlement of his dues when he resigned in July 2003 as
head of Infosys' worldwide sales and marketing and from the
company's board of directors.

 After this episode, Infosys put in place principles of work ethics

and a whistle blower policy.

 Infosys also started sexual harassment cell “call ASHI” (Anti

Sexual Harassment Initiative), to provide an environment free of
harassment

 After this case there has been no allegations of any kind on the
company.
 Concluding Observations

 Sound corporate structure and policy does not guarantee

avoidance of scandals like Phaneesh Murthy’s case

• It’s the managers ethical standards, who man the structure, which
decide the level of integrity and value system within an
organization
Mr. Narayana Murthy:

“For me corporate governance is a mindset, a question

of value systems. It is a way of saying that I put public
good ahead of private good; of not using the corporation's
resources for personal benefit. As a society becomes
more and more evolved, what appears in the realm of
ethics automatically enters the realm of the legal
framework.”
Thank You!