All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Ethics

Infosys has built a state of the art office complex in Bangalore with all modern facilities which helps in giving its employees a sense of belonging. While offering stock choices to its employees, it ensures that the workforce has a stake in its overall growth. Actions speak louder than words and leaders must speak in a way that inspires integrity and a vision for the company.
Corporate Governance is an area of critical importance to Infosys and 1 where it has sought to be a global leader. It is seeking to use its model example to promote far higher standards in India and Murthy has been 1 of the most vocal and influential advocates of corporate governance reform in his country.
The company states: “We believe that sound corporate governance is critical to enhance and retain investor trust. Accordingly, we always seek to ensure that we attain our performance rules with integrity. Our Board exercises its fiduciary responsibilities in the widest sense of the term. Our disclosures always seek to attain the best practices in international corporate governance. We also endeavor to enhance long-term shareholder value and respect minority rights in all our business decisions.”
The Infosys corporate governance philosophy is based on the subsequent principles:
• Satisfy the spirit of the legal regulations and not just the letter of the legal regulations.
• Corporate governance standards should go beyond the legal regulations.
• Be transparent and maintain a high degree of disclosure levels. When in doubt, disclose.
• Make a clear distinction ranging from personal conveniences and corporate resources.
• Communicate externally, in a truthful manner, about how the company is run internally.
• Comply with the laws in all the countries in which the company operates.
• Have a simple and transparent corporate structure driven solely by business needs.
• Management is the trustee of the shareholders’ capital and not the owner.
Infosys stresses that at the core of its corporate governance practice is the Board, which oversees how the management serves and protects the long-term interests of all the stakeholders of the company. It states: “We believe that an active, well-informed and independent Board is necessary to ensure the highest standards of corporate governance.
Majority of the Board, nine out of 16, are independent members. Further, Infosys has compensation, nomination, investor grievance and audit committees, which are comprised of independent directors.”
“As a part of our commitment to follow global best practices, we comply with the Euroshareholders Corporate Governance Guidelines 2000, and the recommendations of the Conference Board Commission on Public Trusts and Private Enterprises in the U.S.

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