Infosys Technologies: The Best Among Indian Corporates

Presented by:

Anuranjan

Vision

• To be a globally respected corporation that provides best of-breed business solutions, leveraging technology, delivered by best- in-class people”.

Mission

“To achieve our objectives in an environment of

fairness, honesty and courtesy towards our clients,

employee’s vendors and society at large”.

• Its business activities are anchored in three pillars of

corporate behavior, Viz., Business Ethics, Corporate

Governance and Corporate Social Responsibility.

Customers

Company

Market Capitalizatio

n

Revenue

Net incom

e

Global presence

Employees

538*

US $20.2 billion*

US $4,176 million**

US $1,155 million**

63 cities across 26 countries

91,187*

Started in 1981,with seven founders, US $250,and a dream

Growth story Of Infosys Technologies as on 31st March 2008

Value System at Infosys Technologies

C - LIFE

Customer Delight

Leadership by

example

Fairness

Pursuit of excellenc

e

Integrity &

transper-ancy

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!