INFOSYS CASE STUDY ANALYSIS

Group Members
 Ashraf Shaikh
 UNDERSTANDING THE CASE OF INFOSYS

 Every organization has one or the other fundamental aspect that forms the
building pillar of the organization.
 For Infosys, business ethics and value system acted as their building block.
 The aspects of corruption, bribery, unduly government policies,
indifference to work from the government officials – challenged the ethical
standards of Infosys.
 The case study analyses the approach of Infosys towards various scenarios
that challenged the organization’s ethics and values.
 ISSUE
ANALYSIS
• Major issues outlined in the case that Infosys had to
tackle are related to:
– Corruption in government sector (bribery to
evade the 135% customs duty).
– “Expectation” from the client perspective (a
prospective client demanding a car to close a deal
in favor of Infosys).
– Non-cooperation from the government officials
unless they were taken care of (The land deal
where a signoff from the government official
meant a cost of Rs 40,000 per acre).
– Insider trading and unethical behavior (exhibited
by employees, some of who are critical to the
projects that Infosys held).
 PROBLEM STATEMENT

The fundamental problem that Infosys was surmounted with was “to fight ethically the
various issues enlisted all of which conformed on unethical behavior and a broken corporate
value system”.
 POSSIBLE SOLUTIONS

• There are two possible solutions to the afore mentioned

issues:
• To sacrifice ethics and values in trying to sustain business and go for
profits by blindfolding itself to the aspects of corruption, bribery, Insider
trading, unethical behavior, favourism - just in order to make quick profits
and attract projects.
• Stick to the ethos of the organization by being ethical and value oriented,
and never give in on value system, irrespective of what it would lead to –
in other words place the values and ethics of the organization above the
financial reaps, to ensure a good business model that is built to last.
 PLAN OF ACTION

• In the forthcoming slides, an analysis of each of the listed

solutions is undertaken to arrive at one solution that stands
out.
• The compiled solutions are analyzed by applying against
each of the issues that are highlighted earlier in the
presentation.
• The impact of the solution is also analyzed, with aspects
related to ethics and values highlighted in each solution.
SOLUTION 1 - TO SIDELINE ETHICS IN HUNT OF
PROFITS
Scenario Possible solution Impact
Customs official To bribe the respective A tarnished image of the organization, encouraging
expecting bribe to clear officials as per their corruption, no backing from the law, as this is an
import of Mainframes & expectations to achieve the unethical solution. Clients may lose confidence in
the land deal end result at a lower cost the organization.

Stock market crash, in To abide by law, and still Public would have lost confidence in the organization
which Infosys invested not disclose the losses due due to its unethical behavior, and hence the
money raised from IPO to the stock market sustainability of the organization in the long run
misadventure wouldn’t have been possible.

To get a deal closed in To present the prospective This would have tarnished the global image of the
favor of Infosys by client with a car, and hence organization and would have marked Infosys as an
returning a favor in some be in his good books and unethical organization that could jeopardize on the
other form thereby win contract corporate value system for its personal gains.

Insider trading and Infosys could have blind- Encouraging corruption at workplace. Could have
unethical behavior folded itself as the posed further risks in future, both internally and w.r.t
demonstrated by resources resources are critical in client services, which could have led to losses in the
that are critical to the terms of delivery of long run, apart from indicating a broken corporate
project services to clients. value system of Infosys
SOLUTION 2 – TO STICK TO ETHICS AND
VALUES
Scenario
Customs official expecting
Possible solution Impact
To end up paying higher cost No further instances of government officials expecting
bribe to clear import of – the additional cost being the bribe from Infosys, all future transactions with Infosys
Mainframes & the land deal self imposed cost to be ethical would be clean, thus indicating a clear win of ethics over
corruption

Stock market crash, in which To accept the losses incurred The respect for Infosys amongst the public, clients,
Infosys invested money at the stock market and be government officials would increase and the trust that
raised from IPO responsible for every sustains the businesses in the long run is bestowed upon
individual’s money Infosys from all quadrants of society – a win for its values

To get a deal closed in favor
of Infosys by returning a
favor in some other form
Insider trading and unethical
behavior demonstrated by
resources that are critical to
the project
To resist any acts of
favourism, which may even
cost the loss of the deal
supposed to happen in favor
of Infosys
Throw the employee(s) out of
the organization, in line with
the ethical and value system
of Infosys
The deal eventually came to Infosys – without even gifting
the car that the client expected in return for closing the deal
– a strategic win for Infosys, in lieu of following its value
system and ethics
This would prevent other employees from indulging in such
acts and would stand as a reminder to the employee base,
clientele and public in terms of the reiteration of the
value system and ethics of Infosys.
 ANALYSIS OF THE SOLUTION(S)

• If Infosys were to yield on ethics and values focusing on quick financial

reaps, the long term survival of the organization would have been threatened
as the backing of the client base, stake holders and share holders would have
been jeopardized.
• To stand by values and ethics would have led to initial problems in terms of
financial burden, non-cooperation from the corrupt elements of the society,
but in the long run, it establishes the organization as an ethical leader, and a
better brand image, which acts as an element that brings back more business
and a greater confidence among the clientele, stakeholders and shareholders.
 CONCLUSION

• Being ethical and value oriented might not be a viable solution in

the initial phase but in the long run, it surely has its own
advantages like a good brand image, discouragement to the
corrupt and yielding officials and systems, and backing of the
confidence of client base, stakeholders and shareholders.
• Hence, the recommendation is to remain ethical and value
oriented, despite the initial setbacks.
THANK YOU