Do you think tha recent leadership changes in infosys is question of governance? Comment on this case of leadership changes in infosys in view of corporate governance
Answers
Infosys, a software corporate founded by NR Narayana Murthy had won several awards in the past for its good governance. However, recently there has been news that there was a fall of corporate governance at the company possibly due to the actions of its chairman and independent director.
According to NR Narayana Murthy, good governance is about doing the right things in a fair and transparent manner and the seniors and corporate members are obliged to take full accountability for their actions.
There was news that large amounts of severance payments to the departing employees were actually the ‘hush money’ to keep their corporate secrets hidden. This issue was described as the drop in the corporate governance at the company.
The common assumption is that Infosys made a huge mistake in managing the new successor CEO. Many felt that the trio of Narayana Murthy, Gopalakrishnan and Shibulal should have continued for sometime more to bring the company back to the top. Also, the new officials have been in a dilemma since they started the competitive game in a new way.
In the past few years, Infosys was an icon that played a huge role to put India on the global IT map. However, now it has stumbled on every front like the financial, employee engagement or corporate governance.