INFOSYS ON CORPORATE GOVERNANCE

CASE STUDY
ABSTRACT
 The case corporate governance at “INFOSYS” talks about the
corporate governance practices at Infosys, one of India’s
largest software companies. Till late 1990s, corporate
governance did not have much significance in India. In 1999,
two committees (CII and Kumar Mangalam Birla Committee)
were set up to recommend good corporate governance norms.
These committees came out with several recommendations,
which were made mandatory for the companies to adhere to by
2001. Infosys was one of the first companies in India in which
had complied with the recommendations made by the
committees. The case discusses in detail, the corporate
governance practices at Infosys, which complied with most of
the recommendations made by the committees.
QUOTE
 Narayan Murthy, Chairman and CEO, Infosys Technological
LTD. (Infosys),2001
“ We have always striven hard for respectability, transparency
and to create an ethical organization. There are certain
expectations that we haven’t fulfilled. But we are also a very
young organization and in areas like track record of
management, we may be low because we are yet to show
longevity”
1. Infosys was one of India’s largest and most famous
software companies and provided a range of information
technology consulting and software services to leading
global organizations. Infosys was involved in customized
software development, internet consulting, application
development and offshore software services.
2. Business world September 24, 2001.
3. The Cadbury Committee was set up in May 1991 in the
UK. The stated objective of the committee was “ to help
raise the standards of CG and the level of confidence in
financial reporting and auditing by setting out clearly what
it sees as the respective responsibilities of those involved
and what it believes as expected of them” The Cadbury
Committee on CG had made 19 recommendations.
CG THE INFOSYS WAY
 Infosys had accepted the recommendations of both the CII and
the Kumar Mangalam Birla Committee. This sections provides
an overview of CG practices followed by Infosys.
 Infosys had an Executive Chairman and CEO and an MD,
President and COO. The CEO was responsible for Corporate
Strategy, Brand Equity, Planning, External Contacts,
Acquisitions, and Board Matters. The COO was responsible for
all day to day operational issues and achievement of the
annual targets in client satisfaction, sales, profits, quality,
productivity, employee empowerment and employee retention.