Narayan Murthy & Ethics Final

7/29/2019 Narayan Murthy & Ethics Final

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A clear conscience

is the softest pillow

in the world.


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Professionalism and ethics are

becoming more and more relevant in ourquest to become better professionals, in

our quest to make this country a better

place and this world a better place. And

that exactly is the background that wehave set out with,

Narayana Murthy.


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O N.R. Narayana Murthy is the founder ofInfosys.

O He took a personal stand against bribery indifficult circumstances in his home country, andwas featured in the Harvard BusinessReview magazine discussing Values and the part

they have played in his success.O Born in 1946 and a bright student, Murthy went

on to acquire a degree in Electrical Engineeringfrom Mysore University and later studied

Computer Science at the IIT, Kanpur, India.O He has also received Padmabhushan award.


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O Attributes of entrepreneurship

O Strong follower of Business ethics

O Opportunistic

O Professional qualification & knowledge base

O Vision & foresightedness

O Sound Management skills

O Commitment to values , speed , imagination

O Leadership leaders in making ( NandanNilekani, T.MohandasPai, S.Shibulal )


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O Infosys was born in year 1981 by Narayan Murthy &six other IT professionals.

O The seven founders were having same vision ofcreating world class company of the professional ,forthe professional & by the professional.

O From the start they want to start business legally &ethically to demonstrate that by putting the interest ofcorporation above own interest will benefit in long-term.

O Mr. Murthy personally assured Mr. Patni that , whileleaving Patni , ongoing projects will not suffer.

O Hence though Mr. Murthy given resignation inDecember 1980, he left Patni in March ,1982.


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O Infosys has always stood for ethical and responsible

approach to business.It has been consistently viewed as the mosttransparent and ethical organization by thecustomers, employees, society and the investor

community.O While a number of organizations today are engaged

in window dressing their accounts and also are tryingto communicate a performance far better than the

actuals, with a view to inflating their valuation,Infosys always followed the policy of nakedtransparency in front of the investing community,through their ' When in doubt, disclose' approach.


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O In 1984 when Infosys imported the first

computer to Bangalore, a customs officialindirectly asked them for a bribe. WhenMurthy pretended that he did not understandthe request the official refused to recognize agovernment certificate that entitled the

company to a concessionary import duty ofonly Rs. 100,000, compared to the regularduty of approx. Rs. 1,000,000. The companyended up paying the higher duty, and had togo through a lengthy claims process lastingsix years to recover the excess duty paid.


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O In 1996 the Company refused to pay a bribe of

Rs. 400,000 in the purchase of land on which itsmodern offices are located in Bangalore. It endedup paying Rs. 4,000,000 extra for the land (40%more than what other companies had paid in thesame area).

O Murthy lived by these ethics and values in 2004when he was travelling with his wife, a non-Infosys employee, he refunded the company thedifference between the hotel cost of a single and

double room. He also commented on why he tookthis stance by saying, The best way of

communicating a message is by walking the talk.You get the best credibility


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O Murthy believed that if people/ employees do not

believe in the values of your company any amountof processes or systems wont help. You cannothave monitoring for every person.

O Infosys Values: They have middle class values. It

is the dignity of and respect for all peopleirrespective of their background. Dont doanything, which is [harmful] to the fairness in allour transactions. Its an ethical and moral means

of making money, so creating money is not the

essential thing. Money will automatically come.


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O In one of the foreign exchange cases , agovernment official conducted an enquiry andsaid, I want a PC for my wife, she is running

a clinic. The founders of Infosys refused to

give him one. He said, I will see to it that

maximum damage is done to you.. It went onand on and finally Infosys had to write to thefinance minister and the official wastransferred.


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O

Murthy believed its possible to be fiercely competitiveyet friendly with your competitors, as long as both

parties are professional & Ethical.

O Hence he says I maintain very good ethical relation

with Aziz Premji, Wipro. I think there is very much that

I can learn from him.


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Sexual harassment caseO Mr. Phaneesh Murthy was former head of

worldwide sale .

O But in 2002, A former employee of Infosys

Technologies in the US, Ms Jennifer Griffith in theUS filled sexual harassment suite against him &asking for $3 million for damages.

O Mr Murthy's opinion and belief that the allegationsare baseless and it is the most blatant example oftaking advantage of the public news of a priorsettlement.

O Company paid half the money .


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ConclusionO Narayana Murthy, through his simplicity,

approach to business, honesty, integrity andprofessional excellence proved to the world

that, ethical conduct, transparency andbusiness acumen are not at variance with eachother and are indeed interrelated.


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THANK -

YOUSampada Bodas - 66

Nikita Devi 69

Narayan Murthy & Ethics Final

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