Infosys Sustainability Report CSR

Analysis of Infosys Sustainability Report

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ANALYSIS OF INFOSYS

SUSTAINAIBLITY

REPORT 2012-13

Submitted By:

Shaina H001

Arpit Kapoor H023

Krishnadev Kashid H025

Manish Porwal H042

Rishabh Rastogi H047

Kumar Shaurya H055


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Table of Contents

About the company ............................................................................................. 3

Stakeholder Engagement Strategies .................................................................. 4

Infosys Commitment to Social Contract ........................................................... 6

Future Challenges ............................................................................................. 10

Issues Development outside the purview of report ........................................ 11

Key Learnings from Infosys CSR Report....................................................... 14

References .......................................................................................................... 16


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About the Company

Infosys (formerly Infosys Technologies) is an Indian multinational corporation that

provides business consulting, information technology, software

engineering and outsourcing services. It is headquartered in Bengaluru, Karnataka.[3]Infosys

is the third-largest India-based IT services company by 2014 revenues,[4] and the fifth largest

employer of H-1B visa professionals in the United States in FY 2013.[5] On 31 March 2014,

its market capitalisation was INR 188,510 crores ($31.11 billion), making it India's fifth

largest publicly traded company

Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S.

Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned

from Patni Computer Systems. The company was incorporated as "Infosys Consultants Pvt

Ltd." with a capital of Rs. 10,000 (roughly $167) in Model Colony, Pune as the registered

office and signed its first client, Data Basics Corporation, in New York. In 1983, the

company's corporate headquarters was relocated to Bangalore.

Infosys pioneered the Global Delivery Model (GDM) based on the principle of taking work

to the location where the best talent is available, where is makes the best economic sense, and

with the least amount of acceptable risk.

Infosys has global footprint spans across 69 offices and 87 development centres I the US,

India, China, Australia, Japan, Middle East, U.K, Germany etc.


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Stakeholders Engagement Strategies

Enterprises have an extended set of stakeholders. These stakeholders have the potential to

influence the future of business. These stakeholders also have ethical, social and

environmental expectations that extend beyond financial goals and legal requirements. The

Infosys believe that these social covenants are fundamental to nurturing stakeholder trust and

ensuring business continuity.

Based on discussions and deliberations with the management and various committees,

Infosys has arrived at the following stakeholders who are important for it: Clients, Employee,

investors, vendors/partners, governments, regulatory bodies, academia and local

communities. The stakeholder consultation process is used to support the highest governance

bodys identification and management of economic, environmental and social impacts, risks

and opportunities.

Strategic priorities: Managements Discussion and analysis

Infosys uses Increasing trend towards offshore technology services as its strategic priorities.

Corporations are in increasingly turning to offshore service providers to meet their need for

higher quality and cost-competitive technology solutions. As a result, offshore service

providers have become critical to the operations of many enterprises and these services

providers continue to grow in recognition and sophistication. In view of this, the addressable

market for offshore technology service has expanded.

Process and Outcome:

In the face of accelerated depletion of natural resources, incremental increases in resource

efficiencies are not sufficient, and beyond a point, optimization gets prohibitively expensive.

Resource identity is about doing far more with far less. Infosys constantly look at

transformational ways to de-intensify and achieve the same or better outcomes, using fewer

resources.

Infosys has delivered best-in-class sustainable business practices, but to also set benchmarks

for other organizations and the society to follow. They have taken up specific goals for

carbon neutrality, water conservation, waste management and biodiversity. A dedicated

Green Initiatives team along with facilities team have steadily worked to achieve the stated

goals.

Health, Safety and Environment policy, and certifications

Infosys Health, Safety and Environment (HSE) policy is a declaration of their commitment

to protecting the environment, sharing best practices and providing a safe and healthy

workplace for their employees. The policy is accessible to all their employees worldwide on

Sparsh (Infosys Intranet), and is displayed at strategic locations on campuses.

All their campuses in India are certified to 14001:2004 Documented objectives and targets

are established at the corporate and development center levels. Operational controls are

Sushant GuptaHighlight


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implemented for their impact management, based on severity. Goals and progress are

monitored at regular intervals.

Energy efficiency strategies

Infosys energy consumption is mainly through the use of electricity and high speed diesel

used for generators and boilers. Conservation of electricity has been one of their focus areas

and they have reduced their per capita electricity consumption through some of the key

strategies mentioned below, also other initiatives by Infosys are also mentioned below:

Central command center

Green Building

Retrofits

Adoption of renewable energy

Energy-efficient IT infrastructure

Virtualization and consolidation

Data centers and server rooms

Video/audio conferencing

Building strategic partnerships

Emissions

Water efficiency

Waste management

Biodiversity

Eco advocacy and eco group activities

Compliance

Below are the some of the facts regarding resource identity i.e. Outcomes of the processes

designed in the past:

43.6% reduction in electricity intensity against the baseline set in fiscal year 2008

34.5% reduction in water intensity against the baseline set in fiscal year 2008

75.6 million units of electricity from renewable sources in fiscal year 2014

10.1 MW of connected load reduction through HVAC retrofits since fiscal year 2011

3.4 million sq.ft. of highest rated green buildings

2MW of onsite solar power plants


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Infosys Commitment to Social Contract

Compliance and anti-corruption policies

Transparency, fairness and accountability: Infosys has consistently followed the

highest levels of disclosure with their stakeholders with specific policies to ensure

accountability such as Code of conduct, and Ethics and Whistleblower. For several

years now, they have been consistently assigned Corporate Governance Rating

(CGR) 1 rating by ICRA and CRISIL has assigned them CRISIL Governance and

Value Creation Level1 rating to their practices

Board Governance: Infosys believes that an active, diverse, well informed and

independent board ensures highest standards of corporate governance. They have

separated the roles of chairman and the board and the chief executive officer to ensure

the right focus to board governance which helps in bringing external perspectives,

objectivity and transparency in the management and dealings of the company.

Corporate Policies: The Code of Conduct and Ethics helps them maintain the highest

standards of business conduct for their employees and comply with requirements of

all applicable laws and regulations including anti-bribery, ethical handling of conflicts

of interests, and fair, accurate and timely disclosure in reports and documents that are

filed with the required regulatory bodies.

Work Life Balance

The role of professionals in the current social environment demands flexibility in managing

an optimal work life balance. Infosys has always helped its employees to attain personal as

well as professional goals creating an engaged workforce. Following are the significant HR

Policies followed by them that support work life balance and inclusivity

Paid maternity leave

Extended maternity leave

Sabbatical for personal reasons

Paternity and adoption leave

Sabbatical for community service and higher education

The Foundation Programme

The foundation programme is a flagship programme that has received recognition from the

American Society for Talent and Development (ASTD).This 21 week long residential

programme engineering graduates has helped them to train software engineers who are

directly hired from colleges. On an average, 15000 to 16000 graduates were trained over the

last three years at the Global Education Center (GEC) in their Mysore campus.


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Human Rights

Infosys respects the equal and inalienable rights of all their stakeholders. Being in the

consulting technology and outsourcing industry which is highly people dependent, ensuring

there are not violations on account of human rights is their business.

Equal opportunity

Diversity and inclusion

Infosys Women Inclusivity Network(IWIN)

Other key points:

Piloted Individual Productivity, a novel initiative to drive performance

Launched First take, a communication campaign to sustain direct connect with employees

Partnered with TV18 to present Innovating for a Better Tomorrow series on CNN-IBN and CNBC

Filed 79 patents during fiscal year 2014

Received silver recognition at the Express IT Awards for Health Assessment and Lifestyle Enrichment (HALE)

Covered 372 colleges under Campus Connect, our Industry-academia partnership program

Launched Responsible Supply Chain Policy, and brought key suppliers under the Infosys Supplier Code of Conduct.

OZONE- The Health, Safety and Environmental Management System (HSEMS) The HSEMS are established at most of the Infosys campus in India which includes well

defined policies and procedures to support the:

Identification and management of hazards and risks related to health and safety

Identification and management of activities causing environment impacts

Creation of processes for operational controls

Defining HSE objectives and targets that are achieved through management

programmes

Periodic review of HSE performance

HSEMS also include the following components

Risk management

Safety Committee

Incident Reporting and investigation

Training on Health, Safety and Environment


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Community Impact As an organization, they are responsible towards all their stakeholders, investors, clients,

employees, vendors/partners, governments and communities. A key aspect of honouring their

social contract is to work in the area of community development, particularly in education

and creation of jobs through direct and indirect investment of time, effort and funds.

Infosys foundation

The Infosys Foundation prides itself on working with the rural community and

undeserved section of the society, selecting projects with care and working in areas

that have not received adequate funding. Some of the infrastructure investments

include A dharmshala(dormitory) built for KIMS hospital in Hubli at the cost of US

$910,000 which can house 225 people at any given point of time, south Karnataka and

a school building with capacity to educate over 1000 children was constructed at the

cost of about US $820,000 in dharmapuri district Tamil Nadu

Infosys Science Foundation

During the year, Infosys Science Foundation (ISF) announced seven winners of

Infosys Prize 2013 across six categories- Engineering, Computer Science,

Humanities, Life Sciences, Mathematical Sciences, Physical Sciences and Social

Sciences.

Campus Connect

A first-of-its-kind industry-academia partnership program was launched in May 2004

to create a vibrant pool of future engineering graduates. For effective and fast paced

learning the CC program also organizes conclaves, road shows at institutions, faculty

enablement programmes, and industrial visits for students with those of the IT

industry to raise the employability of engineering students

SPARK

SPARK was launched in 2008, is a day long program aimed at raising the aspirations

of students across the country. The SPARK portfolio includes three programs, Rural

Reach Program (RRP), Catch Them Young (CTY) and SPARK Guru.

Imbibing social leadership

I, Citizen of Earth (iCOE) is the Infosys program to build a culture of responsible

citizenship among infoscions around the world. They aim at:

Envision a common purpose for the larger ecosystem

Enable voluntary efforts to integrate with the vision and sustainability goals of

the Company

Engage with the Infoscions to help them become change agents and

ambassadors for a better tomorrow.

Embed a culture of global citizenship and innovation for sustainable

development


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Resource Intensity

Following milestones have been achieved till date:

43.6% reduction in electricity intensity against the baseline set in fiscal year 2008

34.5% reduction in water intensity against the baseline set in fiscal year 2008

75.6 million units of electricity from renewable sources in fiscal year 2014

10.1 MW of connected load reduction through HVAC retrofits since fiscal year 2011

ENVIROMONMENTAL COMPLIANCE Infosys comply with all applicable environmental regulations in the countries where we

operate. Their resource intensity efforts are driven by aggressive targets beyond compliance

benchmarks.

Water

Infosyss fresh water consumption is solely for the purpose of human sustenance. Hence, they

believe that they do not significantly impact water resources. They have optimized their water

consumption through focussed efforts over the last six years and they have found that there is

limited scope of reduction

Energy

Infosyss energy consumption takes place mainly through the use of electricity, high-speed

diesel used for generators and boilers, the petrol/diesel used in company-owned vehicles.

They have taken up an aggressive target to reduce their per capita electricity consumption by

50% by fiscal year 2018.

Waste Management

They have been persistent in their efforts to ensure reuse, recycling and the responsible

disposal of waste, and have a scientific approach towards waste management. They provide

products, consultancy and services in the information technology domain. Hence suppliers

are encouraged to reuse the packaging material used in the supply of goods to them.

Waste is segregated at source, stored and disposed at authorized recyclers, in adherence to

applicable legislations. Hazardous waste and e-waste are disposed to recyclers, who possess

the required clearances from the pollution control boards

Steps taken in towards green Innovation:

95% improvement in enterprise storage performance from dynamic storage tier

technology deployment

Partnered with COMMIT to develop wearable computing technology

25 % improvement in agent productivity for telecom client, deploying AssistEdge

Reduction in carbon footprint by optimizing the customer asset management process

Collaborated with confederation of Indian Industry to create volunteering portal for

India@75, Indias first national volunteering week


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FUTURE CHALLENGES

Stakeholder Engagement

The company has not only lost out to the closest peer Cognizant, but also widened its gap

with Tata Consultancy Services. Infosys has the following stakeholders who are important for

it: Clients, Employee, investors, vendors/partners, governments, regulatory bodies, academia

and local communities to whom it is answerable. These stakeholders have the potential to

influence the future of the business. Infosys needs to look far beyond its existing portfolios.

Its Infosys 3.0 is one such attempt. But the problem is it might take some years for that to

kick in.

Corporate Governance

Providing business value while enhancing long-term competitive advantage of the company

requires strong corporate governance and also ensuring results on the triple-bottom line.

Re-designing process of waste management Infosys is developing a biogas plant to convert food waste into biogas which is still being established

in Pune. Moreover, an organic waste convertor will be used soon to compost the food and garden

waste. It is being worked upon, but as of now there is nothing concrete being implemented. Currently

infrastructure has been set up to treat only about 27% of organic waste onsite which has to be

increased to 50% the following year.

Employee engagement

Employee engagement and awareness programs are conducted through eco-clubs to sensitize

employees on waste management issues. But no standard has been set to ensure abidance of

norms.

Reducing carbon intensity It is a challenge to reduce carbon intensity by 2% over the previous year which was already reduced

by 5%. Currently their scope 3 emissions have increased by 32% due to increase in business travel

which includes influence of radioactive forcing in air travel emissions. The inclusion of radioactive

forcing has increased the CO2 emission factor by 90% as compared to previous year.

Renewable energy Currently, the total share of renewable energy of the electricity consumption is 30%. The challenge

lies in increasing the share of renewable energy in electricity consumption by 2% after increasing it

by 5% previous year.

Reducing Water Consumption Infosys is still working on implementing comprehensive rainwater harvesting strategies and also

establishing a methodology to calculate rainwater recharged at campuses. It is developing

technologies to monitor and measure wastewater generated and reused at campuses. Implementing

these methodologies is still in process.


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Issues/Developments outside the Purview of the Report

Accusations of Visa Fraud and Abuse

Employment visas are a politically charged topic in the United States, especially those related to Indian IT services companies that are seen as taking jobs away from Americans. Outsourcing-services companies like Infosys carry out most of their work from low-cost locations such as India, but also send employees to client sites, mostly in the U.S. and Europe, to carry out technology projects.

Satya Dev Tripuraneni, an American ex-employee, said he was harassed by his supervisor after he accused Infosys of visa fraud, according to the lawsuit filed on August 2, 2012 in the federal court for the Northern District of California. Tripuraneni said Infosys billed clients fraudulently for workers brought from India and also charged clients for taxes over and above the required charge, according to the lawsuit. This was the second lawsuit filed against Infosys by an employee claiming they were harassed after raising concerns about the company's visa practices. Jay Palmer, a former Infosys employee, filed a lawsuit in 2011 claiming he endured harassment and threats after he refused to help the company get B-1 visas for work requiring an H-1B work visa. The US B-1 visa allows entry of foreigners to come to the US for business visits; Frequently this is used by overseas employees when visiting the company's US office to attend meetings and to attend conferences, etc. The US believed Infosys used B-1 visas to bring over Indians to work in the US and so avoid having to apply for the H-1B work visa, which costs more and is more difficult to obtain. It is interesting to note that the B-1 in lieu of H-1B visa a variant of the B-1 visa does actually allow entry of overseas workers into the US to work on client contracts typically for six months at a time.

"We are investigating all his claims," Infosys spokeswoman Sukanya Ghosh said. "We categorically deny any allegation or assertion that there is or was a corporate policy of evading the law in connection with the B-1 Visa program. Our position is the same now as it has been from the beginning- We have not retaliated against any employee for bringing any suspected incident to the company's attention and we look forward to addressing this matter soon in open court."

In April 2012 the US Department of Homeland Security announced they were investigating Infosys for "errors in a significant percentage" of US visa applications submitted by the company. According to Infosys, the Department of Homeland Security was then reviewing their verifications of employee work visa applications on the I-9 form. The I-9 form is used by an employer to verify an employee's identity and to certify that the worker is eligible to accept employment in the US. Every employee hired has to complete an I-9 form at the time of hire.


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Infosys paid $34m in settlement

United States said Infosys committed "visa fraud by knowingly and unlawfully" using B-1 visa holders to perform skilled labour allowed only for H-B visa holders, submitted "materially false representations" regarding the purpose of its B-1 holding employees travel to US to "deceive" US officials, and presented, or caused to be presented, to employees of the US "false and fraudulent" claims for property. According to the US authorities, Infosys also breached the US law in failing to maintain accurate I-9 records, for many of the foreign nationals employed by it in 2010 and 2011.

Infosys denied and disputed the allegations by the US. In a 13-page settlement, the company insisted its use of B-1 visas was for "legitimate business purposes" and not in any way to circumvent the requirements of the H-1B program. "Infosys has long been a significant and responsible participant in the H-1B program. Infosys has never intended to, nor has it ever circumvented the requirements of the H-1B program," the company submited.

Despite this, the company conceded that it committed "civil violations" and agreed to pony up $ 34 million in fines, ostensibly to escape a protracted legal battle that may have involved criminal proceedings.

Infosys committed systemic visa fraud and abuse of immigration processes, John Bales, the U.S. attorney for the district, said in a complaint filed with the settlement. We think Infosys has cleaned up their act and if they havent, of course, they are going to be in more trouble, Bales said.

"This is a civil settlement that resolves all issues subject to compliance," Shamoil Shipchandler, deputy criminal chief of the US attorney's office of East Texas, which handled the case. Under the terms of the settlement, Infosys will pay $ 5 million each to the state department and the department of homeland security and $24 million to the United States attorney's office of East Texas.

Under the terms of the settlement, United States agreed to "release Infosys and each of its current and former employees, directors, officers, agents, and contractors from any civil, administrative, or criminal claims," subject to a host of conditions. These include Infosys instituting strict procedures and record-keeping in future. The settlement had come as a relief to the company as it put an end to the long-drawn case. However,

experts had cautioned of some overhang, not only on Infosys but on other Indian IT services

companies as well. They had also said that with Infosys in some way taking the onus of wrongdoing,

there could be implications for the rest of the industry and more IT companies might come under the

scrutiny of the US authorities. According to the firms annual report, it was also asked by the US

authorities to furnish a report on its compliance with its internal B-1 visa use policies, standards of

conduct, internal controls and disciplinary procedures, within 60 days after the first anniversary of the

settlement agreement.

Recent Contribution towards the Infosys Foundation

India's second largest IT firm Infosys today said it will contribute Rs 240 crore this fiscal to its

philanthropic arm, Infosys Foundation, for funding corporate social responsibility (CSR) activities.


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The Bangalore-based firm has already contributed USD 8 million (Rs 48 crore) in the first quarter

ended June 30, 2014, to Infosys Foundation.

"It will work out to around Rs 240 crore. As of now, we have contributed Rs 48 crore in the first

quarter," Infosys CFO Rajiv Bansal told reporters here.

Infosys is one of the first Indian companies to contribute to CSR activities as per the New Companies

Act.

Under the New Companies Act, large companies need to spend at least 2 per cent of their average net

profit for immediately preceding three financial years on CSR activities.

"We are happy to be fulfilling the social responsibility of Infosys. The Infosys Foundation creates

opportunities and strives towards a more equitable society," Infosys CEO and MD S D Shibulal said.

Established in 1996, Infosys Foundation works in the areas of healthcare, education, culture, destitute

care and rural development.

The Foundation had taken up relief work at various calamity-affected areas of Tamil Nadu, Andaman

Islands,Kutch, Orissa and Andhra Pradesh. It has also set up more than 50,000 school libraries across

Karnataka.

Stakeholder management: 5-Point Strategy

After taking over, Vishal Sikka took some regressive steps to manage its stakeholders.

Boost for Senior: In June, 12 leaders were made executive VPs. Recently, 20 executives were taken to

Stanford for brainstorming

Promoting engineers: In August, Okayed promotions for 5000 employees

Employee Connect: In July, launches Murmuration inviting innovations from all

Meeting Client: Regular intensive meeting with clients, ex-employees

Meeting VCs: In June, had multiple meetings with VCs on restarting innovation.

Since his appointment, Sikka has taken five key steps, early signs of which seem to suggest that there

has been a change in the mood from near-despondency to excitement. Note that on June 12, the day

World Cup soccer kicked off, Vishal Sikka was the most discussed subject globally on Twitter.

Sikka since then has tried to win the confidence of senior ranks at Infosys, instill confidence among

the software engineers, and even reached out to former company executives, making many believe he

has an "inclusive leadership style". Finally, in between making three trips to Bangalore, Sikka has

also met with several clients and venture capitalists, leaving some to even suggest if Sikka is the new

Murthy."From what we can tell through our contacts, the mood has changed...employees, clients and

investors are definitely excited," said Ray Wang of Constellation Research. "There is a more can-do

attitude than before," adding that "culture and people are key to success" in any services-focussed IT

company.


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On the day Sikka was named the CEO-designate, Infosys elevated 12 leaders to the position of

executive vice-president with addition responsibilities. Experts then dubbed it as a good start by Sikka

for it could help the company stop the exodus of senior talent. Since then, only one senior vice-

president, K Murali Krishna, has left the company. This is heartening for Infosys which saw at least

four senior vice-presidents quitting in the six months starting January this year.

'HOME' FOR A WEEK

Immediately after his appointment, Sikka, based out of California, started meeting clients and even

got together many of Infosys' business unit heads to meet them in the US. To be based out of the US,

a region which accounts for about 60% of Infosys revenues, Sikka has a ringside view on business.

Sikka will be working out of India for "at least a week" every month while his deputy and Chief

Operating Officer UB Pravin Rao will oversee daily operations.

KEY LEARNINGS FROM INFOSYS CORPORATE SOCIAL RESPONSIBILITY (CSR)

REPORT 2012-13

CSR IS ABOUT VALUE CREATION NOT CHARITY

At Infosys, CSR is not driven by charity but by value creation, value creation for

stakeholders, for employees and for society at large.

Client Value

Individual Productivity Framework : to provide data to individuals in a

transparent manner so that they can plan on self-improvement, help ascertain

training and developmental needs and drive team excellence

Continuous Integration Platform : helps project teams embrace agility,

enhance overall application quality and improve cycle time

Employee Value

Women Inclusivity Network: focussed leadership programs for women with

collaboration with IIM-A and Return to Work Rate of 74% for women

employees post maternal leave

Instep The Global Internship Program : each year over 150 interns from

about 100 universities from across the globe for executing high impact

projects for the organisation

Societal Value

Infosys Foundation: works with the rural community and undeserved

sections of the society, selecting projects and working in areas that have not

received adequate attention and funding


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Rural Reach Program: aimed at creating awareness about computers and the

power of IT among rural school children in India and the schools are also

provided with necessary guidelines on safe disposal of e-waste

PARTNERING WITH SOCIAL GROUPS/ NGOs

CSR at Infosys has always been driven by partnerships with various social groups and

non-government organisations. Some of them are:

NGO LOCATION AREA OF WORK

SAMARPAN BANGALORE Stem Cell Awareness,

Solar Energy, Blood

Donation Camps,

Teaching Programs

AKANSHA BHUBANESHWAR Notebooks and Stationery

to underprivileged

students, Flood Relief,

Health Emergencies

SNEHAM CHENNAI Scholarship to companys support staffs kids

MAMATHA HYDERABAD Self Defence Workshops

for Women, Recruitment

Drive for poor villagers

PRERANA MANGALORE Medical Aid for

Underprivileged, Gifts for

Childcare homes, Blood

Donation Camps

SPARSH PUNE Construction of a school

in the village

CONSERVING AND PRESERVING ENVIRONMENT FOR FUTURE GENERATION

At Infosys, environmental concerns are vital and all measures are taken to ensure that

the company leaves a lighter carbon footprint on the planet. Not only do they have a

proper e-waste management system, they go beyond by forging strategic partnerships

with global institutes to improve on current efficiencies.

Not only do they ensure environmental compliance before undertaking a project but

also study the water use pattern and wastewater treatment from time to time at

different project sites.

Their reliance on renewable sources of energy has increased steadily with time and,

today, a greater share of solar and hydel energy is visible on the CSR report as

compared to earlier


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REFERENCES 1. Report References:

Infosys Sustainability Report (2012-13)

Infosys Sustainability Report (2013-14)

Infosys Annual Report (2013-14)

2. Articles in Journals:

http://articles.economictimes.indiatimes.com/2014-08-

18/news/52941915_1_vishal-sikka-bluefin-solutions-john-appleby

http://www.infosys.com/investors/corporate-governance/Pages/social-

responsibility.aspx

http://articles.economictimes.indiatimes.com/2014-07-

11/news/51354768_1_240-crore-new-companies-act-infosys-ceo

http://online.wsj.com/news/articles/SB10001424052702304527504579167490

918208338

Infosys Sustainability Report CSR

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