Download - Presentation 1 INFOSYS(2)
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WINNING
EMPLOYEES
GROWING
INVESTORS
DELIGHTED
CUSTOMERS
TRUSTED
SUPPLIERS
SATISFIED
GOVERNMENT AND
REGULATORS
HAPPY
SOCIETY
Presented by :-Mahesh Parmar
Poonam UllalDivya Parmar
Deepak Sharma
Corporate Governance
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Corporate Governance
Satyam Vada Dharmam Chara- Taittariya Upanishad
Forever speak thetruth and follow thedharma
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Corporate GovernanceWhat is Governance?
Corporate Governance is the application of best managementpractices, Compliance of law in true letter and spirit and
adherence to ethical standards for effective management anddistribution of wealth and discharge of social responsibility for
sustainable development of all stakeholders.
-The Institute of Company Secretaries of India
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Best Governed Companies
ICSI National Award for Excellence in CorporateGovernance
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&
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INTRODUCTION
Type : Public Company
Industry : IT Services, IT Consulting
Headquarters : Bengaluru, India
Area served : World Wide
Key People : N R Narayana Murthy(Chairman) & (Chief Mentor) , K. V. Kamath
(Chairman) S. Gopalakrishnan (Co-Chairman), S.D Shibulal ( CEO & MD )
Services : IT, Business consulting and Outsourcing services
Revenue : US $ 6.83 billion (Q3- 2012)
Employees : 145088 (Q4, 2011)
Divisions : Infosys BPO, Infosys China
Website : www.infosys.com
BSE : 2859.40 increase 12.80 (+ 0.45%) Face value ( Rs): 5.00
Market Cap ( Rs CR) : 164192.21 P/E : 22.07 EPS : 129.58Book Value ( Rs): 426.69
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Achievements
Voted as the Best Managed Company in Asia.
Biggest exporters of Software.
First to follow the US Generally Accepted AccountingPrinciples before going for Nasdaq listing in 1991.
Championed Corporate Governance in India
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CRISIL : CRISIL assigned CRISIL GVC Level 1 rating to Infosys. ThisGovernance and Value Creation (GVC) rating indicates capability to create wealth
for all our stakeholders while adopting sound corporate governance practices.ICRA : ICRA assigned CGR 1 rating to corporate governance practices ofInfosys. The rating of CGR 1 is the highest on ICRAs Corporate GovernanceRating (CGR) scale of CGR 1 to CGR 6. Infosys is the first company to beassigned the highest CGR by ICRA.TNS Survey : Ranked 1 in the category of Good reputation index
The financial transparency and disclosure standards of Infosys are the worldsbest.It is awarded First position in SAFA ( South Asian Federation of Accountants.)Best Presented Accounts Award 2004 in the Communication and InformationTechnology Sector based on the evaluation of the Annual Report of the company.
Best Annual report award from the Institute of Chartered Accountants of India forthe 10th successive year.Infosys topped the regional rankings for best Corporate Governance in AsiaMoneys Corporate Governance Poll.It has also received National award for Excellence in Corporate Governance fromthe Institute of Company Secretaries of India
Corporate Governance Ratings.
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THE INFOSYS MODEL
A formal code of business conduct and ethics.
To be signed and adhered to by employees.
Action against any employee for violation is
taken seriously
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Benefits of Good Corporate Governance
Having better access to external finance.
Lower costs of capital.
Improved company performance.
Higher firm valuation and share performance.
Reduced risk of corporate crises and scandals
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Infosys had shown that increasing shareholder wealth and
safeguarding the interests of other stakeholders was not
incompatible.
Every non- executive director not only played an active role in
decision making, but also led or served on at least one of the three
( Nomination, Compensation, and Audit )
Infosys founders had set very high standards.
The founders only took salaries and dividends and derived no otherfinancial benefit from the company.
INFOSYS A BENCHMARK FOR
CORPORATE GOVERNANCE
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Nandan M Niletani Managing Director, chief operating officer and
president of Infosys, said, The strengths are that we have been very
successful in creating a value based system with a very strong focus
on ethics .
Strong division between personal & professional funds etc.
Translated into brand equity , shareholder value etc.
We will keep looking at global best practices what the world is saying
on this front. We keep trying to improve to improve the way we manage to be on
par with it.
THE STRENGTHS' AND
WEAKNESSES OF ICG
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Operate through branches worldwidehence only one legal entity / financials
Subsidiaries created only for business and
strategic reasons
Where the subsidiary requires a different strategy, culture, skill sets, cost structure, etc.
No material off-balance sheet items
Highest disclosure standards
The mantra is In case of doubt, disclose. Go beyond the statute.
Transparent reporting on all operating and financial metrics at the time of announcing results State of the art website with lots of useful information
Easy access to management / frequent investor interactions at conferences, roadshows, etc.
Full compliance with laws in all countries / regimes that we operate in
OPERATIONS AND DISCLOSURE
POLICIES
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ETHICS AND CORPORATEGOVERNANCE
Deals with determination what is right'," fair,prior and just" in decisions and actions made thataffect stake holders.
It focuses on the business relationship withemployees, customers, stockholders, creditors,suppliers and member of the society in which it
operates.
Corporate ethics , is a matter of leadership.
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Sexual Harassment at Infosys
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Ethical steps taken by INFOSYS to overcomeHarassment
Narayana Murthy the then Chairman of the Company said to thepress that they have taken steps to strengthen out internal
processes and balances to handle similar situations.
Measures adopted by INFOSYS.
Strengthened grievance redressed procedures. Initiated training programs.
Broadened dissemination of information.
Conducted course on sexual harassment and
importance of gender sensitization.
Project Housekeeping- Launched internal project
to deal with unethical demeanor.
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Suggested measures to tide over the crisis.
Notification of prohibition of sexual harassment at
workplace.
Penalize the offender.
Ensure pleasant workplace environment to women.
Redressal of time bound settlement of complaint. Establish strict policies and guidelines.
Measure performance on the basis of corporate ethics.
Initiating training programs regarding gender sensitivity.
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Concluding remarks
By and large, Indian listed companies have been legallymandated to follow fairly strict standards of corporategovernance and disclosure
Comparisons will show that the standards are far strongerthan all Asian countries, and in general stronger than most
OECD countries Indian corporate sector regulators and companies have been
quick to incorporate some of the best international corporategovernance and disclosure practices
The need of the day is more training of directors, auditcommittee members and senior executives of companies
The challenge is to design and sustain a system that imbibesthe spirit of corporate governance and not merely the letterof the law
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http://askville.amazon.com/Reka-Maximovitch%27s-motive-sexual-harassment/AnswerViewer.do?requestId=35143257
http://www.mid-day.com/news/2003/may/53238.htm
BIBLOGRAPHY
http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/BECG022.htm
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