Corp Gov at Infosys

8/8/2019 Corp Gov at Infosys

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INFOSYS TECHNOLOGIES: THE BEST

AMONG INDIAN CORPORATES


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INTRODUCTION

y Indias most popular & best managed IT company

y Established in 1981

y

Vision: to be globally respected corporation that provides best-of-breedsolutions, leveraging technology, delivered by best-in-class people.

y Mission: to achieve our objectives in an environment of fairness, honesty and

courtesy towards our clients, employee vendors and society at large.

y Its motto: Powered by Intellect and Driven by Values


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y

The company has developed C- Life Principle of core values that itputs into practice in all aspects of its business activities.

y Customer delight

y

Leadership by example

y Integrity by transparency

y Fairness

y Pursuit of Excellence

y Its business activities anchored in three pillars of corporate behavior,

namely, Business Ethics, Corporate Governance & CSR.


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INDIAS MOST ADMIRED COMPANY

y Infosys was voted as Indias best managed company for 6 consecutive

years (1996-2000)by the AsianMoney Poll.

y National award for Excellence in Corporate Governance By GOI in

2000

y Infosys Technologies made a winning sweep in the Business World

Most Respected CompaniesAward 2004

y Also recognized in other categories including Corporate Governance,

Creation of shareholder value, CSR & innovation

y Infosys excels in people management- customers view this as a quality

that distinguishes it from its competitors


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BUSINESS DESCRIPTION

y Business Consulting

y Custom software development

y Maintenancey Re-engineering Services

y Systems Integration

y IT infrastructure managementy Business process outsourcing


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FINANCIALS OF INFOSYS NEXT $1B

y Took 23 years to reach $1 billion revenue mark

y Cross next $1B in just 18 months

y We are beginning to see the results of various initiatives

taken over the last few years Nandan Nilekani, CEO

y

Strategic long term partner for Clienty Planning to invest Rs. 950-1000 Crore in technology

infrastructure expansion


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BUSINESS STRATEGY OF INFOSYS

Hurdles to stay on 50 % growth rate

Reduction in profit margin because of Sarbanes-OxleyAct

Address the challenges through PRIDE

Process Repository@ Infosys for Driving Excellence

Infosys will reap the benefit of an army of employee thatworks the same way, gains in process efficiency andproductivity, and higher quality


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RAPID WEALTH AND VALUE CREATION

THROUGH DIVERSIFIED BUSINESS

y Infosys has stepped up its offerings over the past fewyears at both the ends of spectrum

y The companys extended capabilities are reflected ingrowing engagement with customers acrossindustries

y The creation of a US-based consulting company is amajor step forward in Infosys long-term strategy


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y Infosys relies on its much-touted Global DeliveryModel

y One of Infosys key strengths has been its ability to add

new business offering and mould itself to suit changing

market requirements

y Infosys is also looking to diversify its risk and explore

emerging markets for its range of services


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INFOSYS KEY TO SUCCESS

y Infosys survived the global downturn in IT spendingduring the years of recession between 2001 and 2004

y Infosys success in the highly competitive IT industry lies

in:1. Replacing obsolete technology regularly to remain at

the cutting edge

2. Emphasizing constantly on quality by benchmarking

against the best processes in the world

3. Diversifying income sources to minimize risk ofrevenue, i.e. setting limit to contributions from one

client, one technology, one industry


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BUSINESS ETHICS - INFOSYS

y Code of Ethics

Honest Conduct

Free from Fraud

Marked with Integrity

Whistleblowers Policy

Ethical Value System


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THE PHANEESH MURTHY CASE

y Infosys A value driven company with the bestcorporate governance structure

y Infosys became entangled in a scandal, between October1999 and December 2000

y The Hindu business line reported on 7 August 2002,Since its inception, this is probably the first piece ofnegative news about Infosys


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THE CASE

y In December 2001, former Infosys employee RekaMaximovitch filed a complaint in the Alameda SuperiorCountry Court, Oakland, US, alleging verbal sexualharassment, unwanted sexual advancements andunlawful termination of employment against PhaneeshMurthy

y It created ripples in the business circle


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Cont

y Initially Phaneesh Murthy refused to participate in thesettlement initiated by Infosys on the terms specified byit

y The stand taken by Infosys in this case seemed to goagainst its image

y Media reports blamed Infosys for keeping this issueunder wraps


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Cont

y Infosys Technology maintained a studied silence on theepisode on the ground that the matter was subjudice

y Infosys finally announced the settlement withMaximovitch

y Infosys refused to give more details about the case


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Cont

y A crisis brings out the best and worst in any organizationor in any person

y Mr. Murthy said The litigation with the plaintiff isbehind us. We have taken further steps to strengthen ourinternal processes and improve the checks and balances

to handle similar situations


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CORPORATE GOVERNANCE AT INFOSYS

Corporate governance is a reflection ofculture, policies, relationship with stakeholdersand commitment to values

8 out of 16 are independent members

Board composition

ICRA: CGR 1 CRISIL: GVC level 1

Credit ratings


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CORPORATE GOVERNANCE PHILOSOPHY

Satisfy the spirit of thelaw and not just the letter

of the law

Corporate governancestandards should go

beyond the law

Be transparent andmaintain a high degree of

disclosure levels

When in doubt, discloseMake a clear distinction

between personalconveniences and

corporate resources

Comply with the laws inall the countries in which

the Company operates

Communicate externally,in a truthful manner,

about how the Companyis run internally


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Recommended by Cadbury committeeand CIIs code

The fundamental objective of corporategovernance is the enhancement of longterm SH value and protecting interestsof other stakeholders KumarMangalamCommittee

Best internationalGovernancepractices

Clear Demarcation of responsibilities CEO & COO: separate and co-

ordinatedIndependent Board

Executive : expertise and experience Non-executive : International

professionalismAppropriate mix


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The Audit Committee, the NominationCommittee, The Compensation Committee

KPIs for BOD and benefits based on performance(decided by the compensation committee)

Structures to ensure the evaluation ofperformance of the board

Ensuring that there is no undue dependence oneither single client, territory or technology

Risk management system


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CSR (CORPORATE SOCIAL RESPONSIBILITY)

Balances between wealth and welfare strategiesstrategically

Established the Infosys Foundation a trust to aid the

disadvantaged & destitutes people. It also focused onenhancing the living conditions of people i.e. health ,education , arts ,culture.

Initiated social programs to improve computer literacy

WithMicrosoft . Infosys launched a program computer@ classrooms


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THE INFOSYS FOUNDATION

y Philosophy : it is better to light a candle than remain indarkness.

y Objective is to support the underprivileged in the society.

y Implemented the following projects

Health care

Social rehabilitation & rural upliftment

Learning and education

Arts and culture

y Contributed Rs 5 crore to the prime ministers relief fund toassist the victims of tsunami.

y Provided scholarships ( infosys fellowship programme) to fosterexcellence in education to 5 IITS and 3 IIMS.


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IN RECENT TIMES

No more about maximizing shareholdervalue alone.

Not just about financial controls anddisclosures

Not just about complying with certainthrust upon regulations and norms.


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IN RECENT TIMESContd

It is about Leadership Values & a sharedculture

Being fair to all stakeholder and not just toshareholders & investors

About beliefs that guide behaviour


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IN RECENT TIMESContd

Is a reflection of culture that transcendsnational boundaries

Being truthful and transparent

About techniques & certain kind oftemperament


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Corp Gov at Infosys

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