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Narayana Murthy and Infosys

            

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Corporate Governance and Infosys Contd...

He also made a clear distinction between personal and corporate funds. Founding members took only salaries and dividends and did not have other benefits from the company. Infosys received was the recipient of awards for its good governance practices. In 2001, Infosys was rated India's most respected company by Business World17. Infosys was also ranked second in corporate governance among 495 emerging companies, in a survey conducted by Credit Lyonnais Securities Asia (CLSA) Emerging Markets. In 2000, Infosys was awarded the "National Award for Excellence in Corporate Governance" by the Government of India.

Leaders in the Making

In August 2001, Narayana Murthy set up a Leadership Institute in Mysore, India, to manage the future growth of Infosys.

The institute aimed at preparing Infosys employees to face the complexities of a rapidly changing marketplace and to bring about a change in work culture by instilling leadership qualities.

Commenting on the institute, Narayana Murthy said, "It is our vision at Infosys, to create world-class leaders who will be at the forefront of business and technology in today's competitive marketplace.

…We believe the Leadership Institute will play an instrumental role in equipping Infoscions to be leaders, contributing to the advancement of the IT industry."18 Narayana Murthy expected Infosys revenues to touch around Rs.500 billion (US$12 billion)19 by 2008-09.

Analysts felt that the two factors responsible for the success of Infosys were Speed and Imagination. (Refer Exhibit II). Narayana Murthy agreed, "Without these, we would be wiped out as fast as dew on a sunny morning. Actually, we have a fetish for excellence."21

Exhibits

Exhibit I: Awards Received by Narayana Murthy
Exhibit II: Narayana Murthy's Source Code Behind Infosys' Success Story

17] Business World, September 24, 2001.

18] www.infy.com, Press, March 22, 2001.

19] A&M, June 30, 1999.

Case Details

Case Code : LDEN003
Themes: Corporate Social Responsibility, Great Leaders
Case Length : 8 Pages
Period : 1981-2001
Organization : Infosys
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Software

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