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Infosys Technologies:The Best Among Indian Corporates



Profile of Narayan Murthy

Born on August 20, 1946

N.R. Narayana Murthy is a B.E. Electrical from Universityof Mysore (1967) and M.Tech from IIT Kanpur (1969).

Narayan Murthy began his career with Patni ComputerSystems in Pune. In 1981,

Narayana Murthy founded Infosys with six other

software professionals. In 1987, Infosys opened its firstinternational office in U.S.A.



PROFILE

Infosys Technologies was started in 1981 by seven professionals with US $ 250.The company designs and delivers technology enabled businesssolutions.Infosys pioneered the Global Delivery Model (GDMInfosys has a global footprint with over 50 offices anddevelopment centers in India.Infosys takes pride in building strategic long-term client relationships.In 1997 & 1996, the readers of Asiamoney v oted Infosys ³The bestmanaged company in India



VisionTo be a globally respected corporation that

provides best of-breed business solutions,leveraging technology, delivered by best- in-class people´.



Mission

³ To achieve our objectives in an environment of

fairness, honesty and courtesy towards our clients,

employee¶s vendors and society at large´.

Its business activities are anchored in three pillars of

corporate behavior, Viz., Business Ethics, Corporate

Governance and Corporate Social Responsibility.



Customers

Company

MarketCapitalization

Revenue

Netincome

Globalpresence

Employees

538*

US $20.2 billion*

US $4,176 million**

US $1,155 million**

63 cities across 26 countries

91,187*

Started in 1981,with seven founders, US $250,and a dream

Growth story Of Infosys Tec hnologi e sas on 31 st Mar c h 2008



Value System at Infosys Technologies

C -LIFE

Customer Delight

Leadership by

example

Fairness

Pursuit of excellence

Integrit y&

transper -anc y



D EF ININ G ETH ICS

Understanding right and wrong

Ab ility to distinguish between the right and wrong

Integral Part O f Life

Running a Business is Part of Life



Corporate Ethics

Based On the principle of integrit y and fairness

Focuses On- S take holder and emplo yee

Quality O f product And services

Customer S atisfaction .

Communit y And environment



Corporate Governance Philosophy

The philosoph y of corporate governance is based on the follo wing principles .

1.S atisf y the spirit of the la w

2. T ransparent and high degree of disclosure levels

3. Distinction between personal conveniences and corporate resources 4. Truthful external communication

5. Compl y with laws of all countries in which the compan y operates

6. S imple and transparent corporate structure driven solel y by b usiness

needs

7. Management is the trustee of the shareholders¶ capital and not the o wner .



Infosys has audit, compensation, investor grievances, nominations, andrisk management committees which comprises onl y independentdirectors .

Furnish in the annual reports a bout its compliance with the corporategovernance guidelines of six countries in their national languages .

The compan y compl y with Euro shareholders corporate governanceguidelines, 2000.

The recommendations of The Conference Board Commission on pu b lic

trust and private enterprises in the US.

The compan y also adheres to the UN global compact programme .



CSR Initiatives of Infosys

At Infosys , the distri bution of wealth is as important as its legaland ethical creation . A strong sense of social responsi b ility istherefore an integral part of its value s ystem .

Infosys FoundationEsta blished in 199 6, supports programs and organizations devoted tothe cause of the destitute, the rural poor, the mentall y challenged, andthe economicall y disadvantaged sections of the societ y.

Communit y serviceThrough its Computers@Classrooms initiative launched in Januar y1999 , Infosys donated 2 ,567 computers to various institutions acrossIndia .



EnvironmentInfosys is engaging with global thought leaders and decision -makers in

de bate and actiona b le programs to identif y and drive the implementationof sustaina b le ways to manage the consumption of energ y andresources . The efforts begin right at home, through Project Ozone .

S ocial commitment in educationInfosys ' Education & Research group has the pride of anchoring theInfosys Extension Program ( IEP), which consists of the InfosysFellowship Program, Rural Reach program, Catch Them Young andTrain the Trainer .

S ustaina b ility R eportInfosys has pu b lished its first S ustaina b ility R eport, 200 7-2008. I naccordance with the Global Reporting Initiative (GRI) frame work, thereport encapsulates the compan y's economic performance, innovation inofferings, people engagement, and corporate social responsi b ility

initiatives, and has been a warded an A+ rating by the G RI.



Corporate Governance achievements andRatings

In 2000 , the compan y was conferred the National Award for Excellence in Corporate Governance by the Government of India .

The Business World ² IMRB S urve y ranked Infosys num ber one among

the most respected companies in India, in 2001.It was voted as India¶s best managed compan y for 6 years in a row, between 199 6 and 2001 by the Asia Mone y Poll.

In the year 2000 , in the surve y of Far Eastern Economic Revie w, Infosyswas selected as one of Asia¶s leading corporations and was ranked first as

³The Compan y that O thers Tr y to Emulate´ .

The compan y was voted ³India¶s Most Admired Compan y´ in Economic Times in 2000.



In 2003, Infosys Technologies co-founder and chairman, Mr. N . R.N arayana Murthy, won the Ernst & Young World Entrepreneur of the Year

award for his company¶s ³ outstanding financial performance and globalimpact in a dynamic and volatile industry´.

Infosys Technologies has won the prestigious ³ Global Most-AdmiredKnowledge Enterprises (MAKE)´ Award, for 2004.

Infosys Technologies made a winning sweep in the Business World ³ MostRespected Companies¶ Award´ 2004.

The latest Business Today²AT Kearney study conducted in March 2005placed Infosys Technologies as ³I ndia¶s Best Managed Company´.

CR IS IL assigned the company the ³ CR IS IL GVC L evel 1´ rating, indicatesthe capability to create wealth for all stakeholders while adopting soundcorporate governance practices.

ICRA assigned ³ CGR 1´ rating to the company corporate governancepractices.



The Phaneesh Murthy Case

In dec. 2001, former Infosys employee Reka Maximovitch, aBulgarian American national filed a complaint against Mr.Phaneesh Murthy (head of U .S. Operations and member of BO D )alleging verbal sexual harassment, unwanted sexualadvancements and unlawful termination of employment.

Infosys started an internal settlement and after initial reluctancePhaneesh submitted himself for all the conditions that companyhad set.

Infosys announced amicable dispute settlement on 11 th May 2003and Reka was paid $3 million as compensation.



The compan y had paid $ 570 ,000 to Phaneesh Murth y as part of the final settlement of his dues when he resigned in Jul y 200 3 ashead of Infosys ' worldwide sales and marketing and from thecompan y's board of directors .

After this episode, Infosys put in place principles of work ethics

and a whistle blower polic y.

Infosys also started sexual harassment cell ³call ASHI ´ ( AntiS exual Harassment Initiative), to provide an environment free of harassment

After this case there has been no allegations of an y kind on thecompan y.



Concluding Observations

S ound corporate structure and polic y does not guaranteeavoidance of scandals like Phaneesh Murthy¶s case

It¶s the managers ethical standards, who man the structure, whichdecide the level of integrit y and value s ystem within anorganization



Mr . Nara yana Murth y:

³F or me corporate governance is a mindset, a question

of value systems. It is a way of saying that I put public

good ahead of private good; of not using the corporation's

resources for personal benefit. As a society becomes

more and more evolved, what appears in the realm of

ethics automatically enters the realm of the legal

framework.´



Thank You!

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