INFOSYS

N. R. Narayana Murthy is as well known as a promoter of corporate governance reform and

excellent corporate workplace ethical practices, as he is as the co-founder of Infosys
Technologies Ltd., the Mysore-based company that is one of Indias new technology leaders.
Infosys, which employs over 58,000 people worldwide, provides consulting and IT services. It is
one of the pioneers in strategic offshore outsourcing of software services. Murthy is a fervent
believer in globalization, a major influence on the thinking of author Tom Friedman (The World
Is Flat: A Brief History of the Twenty-first Century) and a leader of Indias technology
revolution. His approach to corporate governance and workplace values has been no less
influential on the most dynamic and successful technology companies in India.
ETHICS

Globally respected corporation that provides best-ofbreed business solutions.

Leveraging technology, delivered by best-in-class people.
To achieve our objectives in an environment of fairness, honesty, and courtesy towards
our clients, employees, vendors and society at large.

1. Customer Delight: A commitment to surpassing our customer expectations.

2. Leadership by Example: A commitment to set standards in our business and transactions and
be an exemplar for the industry and our own teams.
3. Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings.
4. Fairness: A commitment to be objective and transaction-oriented, thereby earning trust and
respect.
5. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves,
our teams, our services and products so as to become the best.

The Infosys corporate governance philosophy is based on the following principles:

-Satisfy the spirit of the law and not just the letter of the law.
-Corporate governance standards should go beyond the law.
-Be transparent and maintain a high degree of disclosure levels. When in doubt, disclose.
-Make a clear distinction between personal conveniences and corporate resources.
-Communicate externally, in a truthful manner, about how the company is run internally.
-Comply with the laws in all the countries in which the company operates.
-Have a simple and transparent corporate structure driven solely by business needs.
-Management is the trustee of the shareholders capital and not the owner.

MANAGEMENT CONCEPTS REFLECTED

1.
2.
3.
4.

Planning
Organizing
Leading
Controlling

SIGNIFICANCE FOR OB PRACTITONERS:

At conference after conference on corporate ethics, values, governance and social responsibility
the major speakers either come from leading European and U.S. companies, or from consulting
firms and academia that use Western firms as their models. There is, all too often, an unspoken
and widespread sense that companies in developing countries either adhere to lower standards
for so-called cultural reasons, or just cannot afford the luxury of the high model Western
norms. Such arrogance is commonplace. The approaches pursued by Infosys of India deserve far
greater attention as a model for all companies, wherever they happen to be headquartered.

TATA STEEL:
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian
multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a
subsidiary of the Tata Group. It was the 11th largest steel producing company in the world in
2013, with an annual crude steel capacity of 25.3 million tonnes, and the second largest steel
company in India (measured by domestic production) with an annual capacity of 9.7 million
tonnes after SAIL Tata Steel's Jamshedpur plant at night
Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the
Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500 people.
Its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK-based
steel maker Corus which was the largest international acquisition by an Indian company till that
date. It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations. It was the seventh most valuable Indian brand of 2013 as per Brand Finance.

Summary of the case study

The concern for ethical decision-making among the regulators, social groups, and managers has
substantially increased in recent years following the failure of some of the prominent business
organizations owing to strong social condemnation of some of their business practices. This
paper reviews the literature to address this concern by examining and discussing significant
issues of ethical decision-making in organizations. Literature shows that the research to examine
the linkage of ethical decision-making with other organizational construct is inadequate. This
paper tries to fill this gap by developing a comprehensive framework of organizational ethical
decision-making and behavior of individuals in organizations. Further, it is used to analyses the
implementation of code of conduct at Tata Steel. Ethical problems are problems of choice owing
to the conflicting nature of values. They occur when the individual values and the social norms
conflict with each other. Often, due to conflicting interests of different stakeholders, managers in
organizations face the dilemma of identifying the righteous decision as perceived by these
stakeholders. Hence, it is important to guide managers by articulating and communicating

unambiguously regarding what is right and what is not. Intense socialization will be required
at different levels to imbibe organizational values and ethical practices. The socialization that
leads to willing adoption of practices is likely to lead to better implementation of ethical
practices. The scope of socialization could be extended to include the family members of
employees to develop a sense of pride among them for being ethical.

Ethics of the company

The case study explains about self-efficiency among the employees. This study shows
that people with high self-efficiency are more open to ethical choices in their decision-

making.
Initiate reward and incentive mechanisms, suitable monitoring system, and
accountability mechanisms. Internal competition-driven performance management
practices induce violation of ethical norms in organizations. Hence, organizations with
such practices would need extra effort in socialization, training, and monitoring to ensure

ethical decision-making.
Develop different mechanisms for avoidance of violation of code of ethics. For adequate
monitoring, ethic supervisors should ideally report to an independent unit in the
organization, preferably at a higher level. Hence, the reporting relationships may need

alteration for implementation of ethical practices.

The company focuses on different individual ethical decision making and ethical

behaviour which are:

1. Intrinsic Factors
2. Moral Intensity
3. Overall Organizational Outcomes
4. Extrinsic Factors
Ethical communicatinal also plays a vital role in this case study as it helps the employee

to report abuses or obtain guidance

Socialization in organization improves ethical decision making in organizations.

Management Concept Reflected

Planning
Organizing

Directing