Phaneesh murthy case presentation
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Transcript of Phaneesh murthy case presentation
PHANEESH MURTHY SEXUAL HARASSMENT CASE
PRESENTED BY:-1. GAUTAM CHOPRA 2. MAHIMA CHANDAK3. MUDIT KHAJANCHI4. MITALI BHURA 5. SONIKA SINGHI
Business Ethics Presentation
About InfosysInfosys is provider of technology, engineering and outsourcing services.
Infosys was co-founded in 1981 by N. R.Narayana Murthy, Nandan
Nilekani and other management partners
Its headquartered in Bangalore. It has offices in 30 countries
Today, Infosys is a global leader in the "next generation" of IT and consulting
with revenues of billion
Infosys ranked among the most innovative companies in a Forbes survey
About Phaneesh Murthy
•Phaneesh murthy 38 years old man, the head of sales
and marketing and communication and product services division
of Infosys
•Phaneesh Murthy, the highest-paid employee of Infosys, he used
to take Rs.1.91 crore every year.
About Reka Maximovitch
Reka Maximovitch, an American citizen of Bulgarian descent.
Reka Maximovitch was working as Phaneesh Murthy's executive assistant.
While she was facing sexual harassment from Murthy from October 1999 she was not reported,
may be due to fear of social ridicule or fear of losing her job.
She was wrongfully terminated from job in Dec’2000.
Problems in the case
•Reka filed a complaint in Oakland,USA on 17 Dec', alleging sexual harassment, unlawful termination against Phaneesh murthy.
•Infosys became entangled in the scandal, it is the first negative news about Infosys since its
inception.
•Murthy abruptly resigned from Infosys.Initially,Murthy refused to participate in the settlement initiated by Infosys.
•Infosys ahead with the settlement without any contribution from murthy.
•Later on, He voluntarily signed the settlement and agreed to every condition that Infosys had set.
Why the things gone wrong
•Lack of corporate governance
•Infosys maintained a studied silence on the episode on the ground that the
matter was subjudice.
•Media reports blamed Infosys for having kept the issue under wraps for a long
time.
•The Company’s share price declined by 6.6percent soon after phaneesh left
How the settlement went
•Giving details of the settlement, Infosys chairman and chief mentor N R Narayana Murthy told
media persons that the company would be paying $3million to the accuser.
•Of this, Infosys would contribute $1.5 million while insurers would cough up the remaining
$1.5million under the company's directors and officers liability insurance cover.
INFOSYS POLICY ON SEXUAL HARASSMENT
•Anti- sexual harassment Initiative (ASHI).
•Encourage employee to report unethical behaviour under whistle blower policy.
•Independent (non-Infosys) grievance redressal body and procedure.
• The redressal body consists of an independent chair person who is a lady, as required by the Supreme
Court guidelines and four committee members who are employees.
•As a part of the training process all officers and board members have been given a course on the
prevention of sexual harassment.
Ethical or Unethical?
Yes, this was unethical. Even in organisations like Infosys, which is known for its best
ethical culture and had strict policies for such harassments, the things went wrong.
Event though out of court settlements are valid in some work places, but I case like
sexual harassment, it was clearly unethical & not the best solution. Instead of clearly
addressing, the problem, this solution simply paid off 3 million to the victim (Rekha) ,
so the defendant (Phaneesh) could walk away. This could be dealt with other solutions
which you will know in upcoming slides…….
How to overcome
Even though there are policies for sexual harassment such disturbing cases happen to overcome this difficulty
Employer’s role
- CREATE SEXUAL HARASSMENT POLICY
- COMMUNICATE THE POLICY
- EXECUTE ACCORDING TO THE POLICY
- MAKE A GREIVIENCE CELL
- TRAINING THE EMPLOYEES
How to overcome
EMPLOYEE’S OR VICTIM’S ROLE:
- DEALING WITH THE HARASSER
- COMMUNICATE THE PROBLEM
- FORMAL AND OFFICIAL REPORTING
-CREATE WITNESS
- SET BOUNDARIES
“THE ORGANISATION AS A WHOLE HAS TO WORK TO ERADICATE THIS PROBLEM OF SEXUAL HARASSMENT”