April 2008
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Integrity – unadulterated

Indian Companies

Few Good Companies

I am sure some of you must have had missed this news. In January this year, Infosys fined its CEO for a technical violation of companyís insider trading rules. The fine of Rs 5 lakh would be donated to charity. And this is the third time that Infosys has penalized a member of its top brass!

At a time when we accept corruption as an unavoidable aberration in our government or other Indian organizations, such a move is a window to a better world. Searching for scapegoats is what most organizations do when faced with a fraud. And companies like Infosys are ready to penalize even their CEO for even unintentional violations of rules and corporate ethics.


Read more: ET, Mint, Rediff

12 comments to Integrity – unadulterated

  • @NoName: I have not edited what I wrote on the article, and I can see that my second sentence read, “In January this year, Infosys fined its CEO for a technical violation of companyís insider trading rules.” So I still don”t understand why you think that I didn”t read that article carefully on the first go? And I am sure that if a “CEO” is being “penalised”, you need to give a press release! Otherwise how would you stop company”s competitors from spreading the word that CEO was penalised because of a ”sex scandal” or ”a fraud” or whatever a wild mind can think of! I am still not convinced how it was an absolute ”publicity”; things like these are often debatable and a reason of criticism and accusations, I see that Infy got its part of that :) But still they choose to be transparent every time. (Rahul)

  • dunno much abt the happenings in India……but if this news is true….India would reach far….at a faster pace……my heart goes out to the people who hold justice and well being for the downtrodden:)

  • NoName

    @ Think Tank :I am glad that you did get the time to go through the article carefully. I was somehow developing an impression that you post a blog post just for the heck of it. I had read about this in several papers and was fully aware of the facts; earlier also. The operative word here is – it was a just a ”technical” violation of the norms laid down by the said company. The CEO was fined for that as per norms. So end of matter. But – They gave a press release – The funds are going for charity – blah blah blah ; informed all the papers etc. This is not transparency it is publicity. My thinking may be negative; but I am not naive like some others are. Rgds

  • @NoName: I can”t believe this. How can people think so negatively? First, I know from where NoName got that idea, that the decision by Infosys was to make cheap publicity. I had read that article in Mint, I followed up in ET. I got a link on Rediff also, so I gave that link here for reference of readers. Today, after seeing your comment, I checked the three articles again. And it was on Rediff! The same logic, that Infosys had done that for publicity! If you chose to read the news instead of the comments by readers, you would have known this: the CEO inherited 12800 equity shares from his mother, but he failed to “notify the company within one business day”, that is why he was fined! The transaction was not illegal! It was not unethical either! It was just that he couldn”t inform the company within the next working day! Did he make money in the process? Did he sell the shares? No! Then how did he make money? Don”t be overcritical dude. Correct me. (Rahul)

  • I think I agree with a blogger has said…this is just eye-wash…to create the impression that they play by the rule-book…

  • NoName

    A single 10 sec spot on any self respecting TV channel costs 2-3 lakhs. For 5 lakhs all news papers are going ga-ga. A fact that they gave out a press-release shows the prime motive behind the whole exercise. A disclaimer : What ever I have said; does not change an iota, the opinion & high regard I have for the style of functioning of Infy, otherwise.

  • NoName

    Did any one question – how much the said officer gained by way of insider trading. A fine of a paltry sum of Rs 5 lakhs… whom are they kidding. 5000 shares x Rs 100 gain on each = Rs 5,00,000/- . What are 5000 shares for a senior employee. It is all a white wash…. a PR exercise. In US or even Europe he could be in Jail.

  • also, integrity is now widely used a competency which the candidate must have while joining th efirm. even the selection is based on it , coz u either have it or not. co.s wouldnt wait for one to develop it. good example set by infy.

  • Work culture of an industry or institute depends a lot on the integrity of the top brass. It runs from upside down, I think.

  • I really missed that news Rahul… Thanks a lot for such a nice piece of information….. Thanks for sharing…..

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