ASSIGNMENT ON

The learning derived from the interview of N R Narayana Murthy published in Harvard Business Review of November 2011

Submitted to : Prof. MANAS CHAKRABOTY

BY: SURAJ KUMAR MODI ENROLLMENT NO: 030301013

but in reality it is the only way to set the tone for a corporation’s ethics and compliance program. artificial high pricing. This is because they can cheat a consumer only once. of the products. I often write about “Tone at the Top”. but they will fail in the long run. adulteration. the consumer will not buy goods from that businessman 3. cheating in weights and measures. The businessmen who do not follow it will have short-term success. price.” He said that “you have to learn to stand by your principles. selling of duplicate and harmful products. Murthy said that he was one of the original founders of Infosys and his vision of the company included the question “Why don’t we aim to be India’s most respected company?” To obtain the respect of governments. quantity. They feel that such businessmen will not cheat them. explaining that “Leaders have to be careful not to create dissonance between what they say and do. the founders agreed to create a “values-based organization.” Business Ethics -Role and Importance 1. hoarding. etc.” Murthy said that he believed that business would come if the company was respected. After that. eventually it did. This ethical reputation also led to the generation of greater and greater business because “our clients entrusted us with increasingly bigger projects. He cited the examples of board members. The customers have more trust and confidence in the businessmen who follow ethical rules. He said that while it took some time for this ethical corporate reputation to take hold.” One example he discussed was the consistency of discipline.“Why Don’t We Try To Be India’s Most Respected Company?” which was an interview by HBR’s Anand Raman with N.” Murthy believes that “Setting an example at the top is the best way to instill confidence throughout the company. . it’s wrong to believe that you have to bribe your way to success. Improve customers' confidence: Business ethics are needed to improve the customers' confidence about the quality. To help to achieve this goal. Survival of business: Business ethics are mandatory for the survival of business. 2. etc. R. Stop business malpractices: Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black-marketing. this meant to “never violate any laws”. who paid “heavy fines for what could be considered minor infractions.” Murthy said that Infosys managers are expected to lead by example. Narayana Murthy who was a founder of the Indian company Infosys and its most recent Chairman of the Board. noting that not only does the US Department of Justice (DOJ) mandate it as one of the requirements for a best practices compliance program. One of the results was that corrupt government officials stopped asking the company for ‘favors’.

. and hence are highly needed. The society will always support those businessmen who follow this necessary code of conduct. Creates good image: Business ethics create a good image for the business and businessmen. then there will be no sales and thus no profits too. Any business simply cannot survive without the consumers. the consumer is the king of the market. 6. It will also result in profits for the businesses thereby resulting in growth of economy. the main aim or objective of business is consumer satisfaction. If the businessmen follow all ethical rules. If the consumer is not satisfied. Consumer will be satisfied only if the business follows all the business ethics. Develops good relations: Business ethics are important to develop good and friendly relations between business and society. 5. Consumer satisfaction: Today. This will result in a regular supply of good quality goods and services at low prices to the society. then they will be fully accepted and not criticised by the society. Therefore.4.

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