Infosys: Return of N R Narayana Murthy |Strategy Case Study - Corporate Strategy
Infosys is considered as a bellwether not just for India's emergence as a strong economy in a globalised era in a pioneering export sector, but also for corporate governance and disclosures wore on the sleeves by its iconic founder, NR Narayana Murthy. But its shares have plunged by as much as 14 percent overnight, and it is a good opportunity for us to use the Infosys episode as a case to understand the nature of corporate governance and whistleblowing in India. The details of the whistleblower complaint , which mention everything from chief executive officer CEO Salil Parekh's travel habits to his casual remarks on employees, are such that either his future is in doubt or his style will be cramped. We need to ask if big companies have to be bureaucratic in the pursuit of processes.
People at the top echelons of Infosys believe that a cofounder of the company and a former senior executive conspired with the whistleblowers who have made allegations of corporate governance failures involving Chief Executive Officer Salil Parekh. The whistleblowers have made a series of allegations against Parekh and chief financial officer Nilanjan Roy. In addition to writing to the company, the whistleblowers say they have presented evidence to the US Securities and Exchange Commission in the form of recordings and emails. The emails and recordings, the whistleblowers claim, show that Parekh and Roy window-dressed accounts, insisted that visa costs not be recognised and insisted that key information be concealed from the board and auditors.
By the late s, Infosys Technologies Limited Infosys 1 had clearly emerged one of the best managed companies in India. Its corporate governance practices seemed to be better than those of many other companies in India. Because of its good governance practices, Infosys was the recipient of many awards.
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