IGATE Corporation 1

American University of Beirut- AUB

IGATE Corporation: Toxic Talent and Organizational Resilience
Team Members:
Raquel Bardawil
Lara Masri ChamounChouman
Andrea GeamyelGemayel
Marc Ghassibe Abi Chedid
Razan Raidan

Submitted to: Dr. Randa Hamzeh

Due Date: March 5, 2023
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Spring 2023
Table of Content:
I. Introduction: Case Summary and Ethics in the Workplace ……………………………3
II. IGATE’s Unethical Issue and How It Relates to HRM ………..……………………....4
III. Managerial Perspective:

Definition ………………………………………………………………………………………5

Ethical Leadership Principle and the Managerial Perspective in Relation to iGATE …………5

IV. Ethical Decision-Making Framework:

Definition ……………………………………………………………………………………....6

Ethical Decision-Making Process in Relation to iGATE ..…………………………………….7

V. Ethical Recommendations to Tackle the Unethical Issue at iGATE …………...……...9

VI. Conclusion ……………………………………………………………………………12
VII. References……………………………………………………………………………..13
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Toxic Talent and Organizational Resilience

    I.          Introduction: Case Summary and Ethics in the Workplace:

To begin with, organizational ethics can be mainly defined as the values or principles that guide
and direct individuals’ behavior in the organization. Business ethics are present in order to
prevent organizations from any harmful behaviors which hinder the company’s performance. As
such, every organization must be able to lead in an ethical manner (Schindler, 2019). It’s crucial
for companies to ensure that their employees are being treated fairly with respect, dignity, and
loyalty. What’s even more important is making sure the HR team and employers are delivering
their ethical message in a consistent way. This means that they cannot simply talk the talk,
however, they should walk the talk and be an excellent role model for their employees. Once
employees are treated with dignity and respect, they will, in return, treat their employers with
respect as well. This is why doing what is right even when you are alone is the most integral and
important part of being an ethical leader (Schindler, 2019). When the HR team and employers
effectively communicate the company’s culture in terms of its values and principles, then this
would enhance the organization’s reputation and performance. So, when both employers and
employees demonstrate ethical and moral conduct and behavior based on the norms in their
interpersonal relationships, this is known as ethical leadership (Dolan, 2021). And this is what
the IGATE Corporation lacked. Many allegations have been held against Murthy, related to his
abrasive and rough behavior towards other female employees, and yet, IGATE decided to
acquire Quintant Services Limited which was founded by Murthy and two other individuals. This
is how Murthy became iGATE’s CEO and president regardless of being accused of sexual
misconduct. However, Murthy was able to transform the firm into a very profitable one and was
great at what he does, disregarding the accusations and allegations held against him. This can be
proven by the fact that IGATE received several awards such as the World Class Award and a
great achievement at the GPEA, which determine its success and hard work. We can directly
acknowledge the reason behind why Murthy was wanted as CEO at iGATE, due to his excellent
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management capabilities, as he has largely increased revenues at Infosys, his previous company,
from $2 million up to $700 million in less than 10 years. However, the main issue is “Why hire
toxic talent and not take careful steps in acquiring the right talent? How was IGATE able to
disregard such a vulnerable issue and what was the main purpose behind it?”

    II.          IGATE’s Issue and How It Relates to HRM:

A case where what is ethically correct and what is legal, acceptable, or practical are in conflict is
referred to as an ethical issue. Ethical problems can occur in a variety of corporate contexts,
including hiring procedures, pay and benefits, privacy and confidentiality, discrimination, and
harassment. The HR department oversees making sure that the company's policies and
procedures comply with ethical standards and regulatory obligations, ethical concerns can
present a significant challenge. To establish and sustain a workplace culture that encourages
moral behavior and deters wrongdoing, HR plays a key role.

The unethical problem at iGATE has various connections to the HR department but also to the
board of directors. In addition to managing and growing an organization's personnel, HRM the
HR department is vital in fostering a healthy workplace culture and making sure that the
company's policies and procedures are morally and legally correct. Even though the HR
department is in charge of finding candidates who will fit well with the organization's culture and
values, Murthy has been hired as iGATE’s CEO and president by the board who are the ones to
blame during the “recruitment” process, as they have disregarded Murthy’s previous accusations
which is definitely problematic. HR must therefore oversee and assess the performance of all
employees, from upper level management to lower. This would allow HR to keep an open eye on
the iGATE’s environment in order to address any toxic talent or behavior. This leads us to the
final point where HR must focus on promoting a work environment that values honesty, respect,
and justice. So, when candidates whose values and ethics do not meet with the company profile
and values are hired, this will damage the workplace culture.

The absence of the three previous components in an HR department can result in damaging the
organization. People may doubt a company's judgment and ethics when it encounters ethical
problems, such as the toxic talent situation at iGATE Company. This inquiry may result in
unfavorable press coverage, which may harm the company's reputation and cause stakeholders to
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lose faith in it. Also, employee morale, motivation, and productivity can all be significantly
impacted by toxic conduct in the workplace. When toxic behavior is permitted to continue, it
may become accepted as the norm, creating a poisonous work atmosphere, making employees
feel unsafe and unsupported. When a company fails to address toxic behavior in the workplace
and lacks resilience to toxic behavior, it can erode the trust that employees and stakeholders have
in the organization (Clarinval, 2021). The issues at iGATE Corporation demonstrate the
significant impact that toxic behavior can have on a company's reputation, employee morale,
motivation, and productivity, as well as on the trust of stakeholders. Companies must prioritize
creating a safe and respectful workplace to avoid similar issues and maintain trust among
employees and stakeholders.

  III.          Managerial Perspective:

Definition: We definitely know how important it is for managers to act in the best interests of
their organization and stakeholders, which include employees, suppliers, and customers… Every
group has its own interests, needs, and priorities, which can sometimes be difficult to satisfy
(Forbes, 2022). This is why Oorganizations must understand their priorities and analyze how
they are aligned with the company’s mission, by treating all stakeholder groups fairly and
equally, without placing one above the other. So, they cannot and should not place the
customers’ needs and interests over those of the employees. This would reduce motivation and
encouragement. What’s even more important is having managers who listen to their stakeholders
and know what they value and cherish. This would lead to an authentic discussion that shows
how crucial it is to value and understand others by treating them with fairness and respect. This
brings us to another point that deals with treating employees in companies with trust, dignity,
integrity, and fairness in order to create a more inclusive culture (Forbes, 2022). Moreover,
managers must be aware of the ethical implications of their decisions and how to properly
promote ethical behavior (Class Material: Business Ethics and Inclusive HRM Systems-
Managerial Perspective). They must be accountable for their own decisions and be aware of the
consequences when dilemmas arise, in order to know how to tackle such issues by being ethical
and moral. And, finally, managers must address toxic talent and know how to properly solve
such an issue in order to prevent the company from having a toxic environment that will harm
trust and respect.
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Ethical Leadership Principle and the Relation of Managerial Perspective to IGATE: When
making decisions for the company, ethical leaders should consider the long-term effects,
benefits, and drawbacks, and this is what iGATE lacked. They only focused on the short-term,
by bringing in Murthy as CEO, just to increase their revenues, as their financial situation was
very bad. Their main reason behind that was due to crisis management rather than poor talent
acquisition. This is because Murthy has been hired as CEO by the board so that iGATE can get
rid of its huge debt and become financially stable. Thus, the role models that leaders provide for
their followers help them understand the rules of behavior that are established within a company.
They are seen as being sincere, reliable, brave, and acting with honesty and integrity. The more a
leader "walks the talk," or puts internalized beliefs into practice, the more respect and confidence
he inspires in his followers (Mihelic et al., 2010).

In this case, Murthy was not honest and was not transparent about being fired from his previous
position at Infosys 18 months ago. His behavior had a negative impact on IGATE. And here we
can see the importance of the HR background check in the recruitment process, even if it’s
related to the CEO and not a regular employee and why during this process HR should ask for
references in order to get feedback on the performance of the new hire, and necessary start a
more serious investigation. We also cannot deny the fact that Murthy even forced Roiz to abort,
as she was pregnant by him, and he still denied any rumors related to his “secret” relationship
with her. 

The development of morality within a company should be the responsibility of leaders, who
should serve as an essential source of ethical guidance for their subordinates. It may not seem
essential how we act or how we accomplish goals (as long as they are righteous and legitimate),
and some may even contend that ethics has nothing to do with management. Contrary to popular
belief, management, and leadership have a lot, if not everything, to do with principles.
Additionally, managers' actions are replicated across organizations, and their standards of
behavior are a crucial component of the business climate, values, and culture (Mihelic, et al.,
2010). When they hired Murthy, IGATE mainly focused on targeting big numbers, not on the
culture and the values of the company, making employees feel unsafe. Ethics should not be a
one-time infrequent occurrence but rather a process in leader-follower relationships. Leaders
must convey ethical standards and continuously assess real-world examples in order to affect
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followers' ethical behavior. As a result, simply creating a code of ethics is not an adequate first
step in implementing ethical behavior in organizations. Every aspect of organizational activity
needs to be infused with ethics (Mihelic et al., 2010) Here comes the focus on accountability,
transparency, and responsibility.

IV.          Ethical Decision-Making Framework:

  

Definition: Though we all make judgments on a daily basis, not all of them are morally right.
Ethical judgments foster trust, as well as justice, accountability, and concern toward others.
Acknowledging these circumstances, the ethical decision-making process calls for evaluating all
possible alternatives, screening out immoral viewpoints, and selecting the most ethically sound
solution. Effective judgments in business situations promote confidence and respect and are
typically linked to ethical behavior. Successful choices are those that meet the goal for which
they were designed.  As future HR practitioners, there is a duty to ensure a conflict is handled in
an ethical manner. The method for making ethical judgments is to consider all of the options
available to you in order to accomplish your goals. It can be difficult and entails some
understanding of moral matters. So, there is a framework that one can follow before making a
decision, that can help to clarify if it's ethical or not.

Ethical Decision-Making Process in Relation to iGATE:

1) Determine the facts: When gathering information, it’s important to make sure the source is
credible, and look at the different perspectives presented. In relation to HR, it's essential to make
an honest effort to understand the situation since it’s not always easy to gather facts and
distinguish between what is a fact and an opinion, without jumping to conclusions. Judgments
made with facts are more ethical and logical. Murthy’s case is complex and offers different
points of view; the accuser, the accused, and the company. In order to make an ethical and sound
judgment about the implications of this case, they must begin by gathering all the facts. For
example, a fact is that Murthy had been accused of sexual harassment 3 times before Roiz’s case
(the Head of Investor Relations at iGATE). This fact makes a conclusion on Murthy’s unethical
behavior more credible since there was a pattern of wrong actions.
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2) Identify the ethical issues involved: There could be more than one ethical issue, but they
should be addressed based on urgency and importance. The problem when defining the ethical
issue is, not everyone agrees on what constitutes one. What might appear as an issue to one, is a
business decision to others. So how do we determine the ethical implications of a decision? By
being sensitive and asking “To what degree does the decision affect the well-being—the
happiness, health, dignity, integrity, freedom, respect—of the people involved". If the decision
has a negative impact on these factors, then there is an ethical implication to the issue. It can be
difficult to recognize the ethical issues in business and some forms are: 

- “Normative Myopia” is the failure to recognize or ignore ethical issues in the decision-making
process. For instance, getting wrapped in the implications that affect the company, so one
ignores the ethical aspects. In this case, we can see that iGATE could have ignored the ethical
aspects of two co-workers having a relationship, because they cared about the business and the
loss they would have if they had fired him earlier. 

- “Inattentional blindness” is the failure to recognize moral implications because they’re

focused on other aspects. For instance, by only focusing on the good that an employee is doing
that you disregard the bad. In this case, focusing only on the numbers Murthy was making,
without looking deeper at all the past sexual harassment allegations against him. 

- “Change Blindness” is the failure to notice gradual changes over time. In this case, not
noticing the culture that was being created at iGATE is an example. If there had been better
employee screening and issues of harassment were dealt with before anything happened, there
would be less of a blindness towards the events that occurred. 

3)  Identify stakeholders and consider the situation from their point of view: A decision should
not be made by a single person, nor should the information be only received by one person.
Additionally, look at how this situation can be perceived from different viewpoints. As iGATE is
making a decision, don’t just focus on how the company gets affected, but how Roiz gets
affected and how other employees who are witnessing and living this event feel. If the correct
process was undertaken before the promotion and hiring of Murthy as CEO, then there might
have been a different choice made. Gathering all the information on his prior behavior, not just
his work capabilities, would iGATE’s stakeholders have made the same decision? Would they
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have been more likely to see the ethical implications of hiring him? Would the company be as
reckless and fail to see the culture at iGATE if it wasn’t for the success blinding them?

When dealing with stakeholders, it’s harder to make sure the decision is in the best interest of all
the parties. But an ethical decision is one that is morally just and has logical standing and
considered all options without acting on assumptions and impulse. 

4) Consider the available alternatives: Just like there are multiple viewpoints to the problem,
there are alternative solutions. Ethical decision-makers don’t just go with the obvious choice, but
take time to see what options are presented, and dig to see if more are hidden. The solution in the
case was to fire Murthy the second the allegations became a threat to the company. That may be
the correct solution short term, as Murthy was behaving unethically. However, the solution could
have included other aspects like finding a more suitable replacement that wouldn’t have left the
company in distress. Is there something else the company can do instead of hiring more toxic
talent? Asking questions and digging to find more solutions is the ethical way to approach a
decision. 

5) Comparing and weighing the alternatives: If there are multiple alternatives, then one must
create a spreadsheet to evaluate the consequences of each and formulate the best option. When
weighing and evaluating, it's essential to understand the different approaches. Let’s take a look at
only the utilitarian approach—however, there are others—which is the ethical approach that right
and wrong are only based on the outcomes. It’s the idea of “greater good” or “ends justify the
means”. When an act becomes unethical and causes harm, it’s no longer just. When making a
decision, the approach used must also be decided. This is why it requires time and different
perspectives, to reduce bias and errors. When looking at the case, what decision would best
support all parties involved? If there isn’t one, how can we protect those who have been harmed
first and foremost? 

6) Make a decision: Whatever the decision is, it must be something that even ten years looking
back, the same decision would be made. This would be because it was based on logic and moral
facts. All the options were evaluated, and different perspectives were considered. The approach
and process were also evaluated to make sure no bias or alternatives are present. Finally, after the
decision is made, it’s time to monitor the outcomes, understand what was presented, and how it's
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adapted to the environment. Any mistakes that emerge will be caught on time and fixed. Later
on, when the process is redone, it would be more tailored to the company. In the case of iGATE,
this process needs to be implemented at the recruitment level. In order to stop retaining and
hiring toxic talent, there is a social duty to dig deeper and make ethical decisions on who
represents the company, and what they stand for.  

V. Ethical Recommendations to Tackle the Unethical Issue at IGATE:

The case study highlights the value of organizational resilience and the need of dealing with
toxic workplace behavior. According to Duchek, S. (2020), organizations need to build resilience
capability in order to be able to deal with unforeseen events, recover from crises, and even
promote future success. Whereas, excellent communication, transparency, and leadership skills
are important to promote a pleasant workplace. The case also exemplifies the impact toxic talent
can cause on a business, including decreased productivity, increased employee turnover, and
harm to reputation. IGATE could have simply terminated Murthy, however, there are other
recommendations for organizations dealing with comparable challenges that might be
appropriate:

1. Background checks are a proactive approach, which can help detect people with criminal
records, financial troubles, or other red flags that may suggest a risk to the business or its
employees, and are a crucial component of HR procedures. However, they must be
conducted in line with current laws and regulations. Murthy, the former CEO of iGATE,
was accused of sexual harassment at his old company, Infosys. If iGATE had looked into
Murthy's background, they could have determined whether or not to hire him, and the
sexual harassment incident that occurred in 2013 could have been avoided.
2. Develop and uphold a clear code of conduct that acts as a guideline for workplace
behavior. By updating policies and guidelines, any organization should use its experience
to increase its resilience to make progress. Equal and fair policies must be placed for
everyone at the company, from lower to upper management. In the case study, iGATE
had a code of conduct that prohibits harassment and discrimination, but it wasn't being
effectively enforced at the time, which allowed toxic behavior to persist. To guarantee
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that every employee is aware of and abides by the code of conduct, iGATE may need to
implement more rigorous training and instructions to ensure that this doesn't happen
again.
3. Encourage open communication and transparency within the organization, in order to
foster a culture of trust and prevent toxic behavior. When dealing with unexpected
resilience, clear and frequent communication with all stakeholders is critical. Updates on
the situation, the response strategy, with any necessary modifications should be included.
iGATE should encourage staff members to express concerns or issues without fear of
retaliation and should be more transparent about its policies and decisions to encourage
employee involvement and trust.
4. Quickly and directly address toxic behavior, by providing feedback and coaching to
employees who exhibit such behavior. The former CEO of iGATE, Phaneesh Murthy,
was accused of sexual harassment while employed at Infosys in 2002, but was given the
option to resign rather than be fired. After becoming the CEO of iGATE in 2003, he was
once more accused of sexual harassment there in 2013. His employment with the
corporation was promptly terminated, although some contend that the 2013 situation
would have been avoided if iGATE had dealt with the previous incident more forcefully.
The incident serves as a reminder of how crucial it is to deal with toxic behavior as soon
as it occurs, even when it includes high-ranking executives, in order to protect both the
business and its employees. According to the feedback, the organization should develop a
reaction strategy that outlines the measures required to cope with the unexpected
resilience. All stakeholders should provide input to the plan, which should be adaptable,
flexible, and scalable.
5. Encourage a respectful and collaborative culture that values inclusivity and diversity.
Based on our further research about IGATE, we were able to tell that it lacked diversity
and inclusion. This is why IGATE must develop policies to enhance work-life balance
and worker health by building a culture of respect and collaboration that values diversity
and inclusion.
6. Make investments in training and development programs for managers and employees to
advance communication, emotional intelligence, and leadership skills. By providing staff
with the necessary training and tools, iGATE could have improved the working
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environment and stopped toxic behavior. Additionally, the training's offered reaction plan
should also be routinely evaluated for efficacy, and it should be adaptable enough to take
into account any unforeseen challenges.
7. Conduct regular employee engagement surveys to evaluate the workplace culture and
pinpoint areas for improvement. By soliciting feedback and making improvements in
accordance with that feedback, iGATE may have increased employee engagement and
motivation. These regular surveys serve to gather information, and data, and consult with
stakeholders to understand the nature and potential scope of the problem, and the root
cause of the unexpected resilience. So that the business is prepared to implement the
response plan when a problem arises and knows what resources, both internal and
external, to deploy.
Finally, the case emphasizes the importance of creating a peaceful and healthy workplace that
values employees and supports their overall well-being. Companies can create a solid and
sustainable culture that supports long-term performance by tackling toxic behavior and fostering
organizational resilience. By effectively dealing with unexpected resilience through a proactive
and adaptive approach, a company can emerge stronger and more resilient in the future.

VI. Conclusion:

The company's culture and HR procedures in this case study were significantly impacted
by a number of issues, such as toxic conduct, harassment, and a lack of diversity and
inclusion. A serious ethical issue that could hurt both the company and its employees is toxic
behavior. HR plays a critical role in resolving this issue by developing and implementing rules
that support a pleasant work atmosphere full of respect and collaboration and by successfully
addressing any toxic conduct. From a governance perspective, addressing problems right away
helps to build a culture that encourages inclusivity and diversity, moral behavior across the
board, and the capability to manage any potentially harmful or unethical behavior. This
necessitates moral leadership and decision-making, which entails understanding and defending
moral ideals as well as considering the potential effects of every action on all stakeholders. Any
decision that is made in response to unethical behavior must be justified by reasoned logic and
moral evidence. HR must consider how each choice will affect the stakeholders, the business,
and the employees when making it. It is crucial to assess the approach and technique used to deal
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with toxic conduct or ethical violations to ensure that there are no biases or hidden agendas. HR
must stay unbiased and transparent throughout the process to maintain the trust of all parties,
including employees. Any actions taken must be consistent with the company's values, and they
must respect the ethics and culture of the company. The issues at IGATE could have been
avoided if it had effectively identified and addressed ethical issues. Identifying the issue,
gathering information, weighing available options, selecting one, and monitoring the outcome
are all steps in the ethical decision-making process. This process needs to be implemented at the
recruitment level. In order to stop retaining and hiring toxic talent, there is a social duty to dig
deeper and make ethical decisions on who represents the company, and what they stand for.
Companies can create a more engaged, effective, and ethical workforce by fostering a positive
work culture, encouraging diversity and inclusion, and dealing with unethical behavior swiftly
and directly.

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