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Infosys the most trusted company?

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After the Satyam debacle everyone is talking about corporate governance and the trust factor of a particular company. Until now corporate governance is fancy word which is a subject for the management students. That will be dusted off and will be a hot course. At least in ISB.

Everyone is looking for the most trusted Indian company. There are multitude of opinions. India needs better corporate governance regulations or family run businesses in India do not have any transparency. Given those opinions voiced by the foreign media the companies will undergo a lot of scrutiny before a dollar is invested.

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This survey though done by Mint sheds some important light. It is funny this survey should come up today as I was discussing this with my colleague just yesterday night. Among the IT companies we felt that Infosys has a better management, not family run  and might have less skeletons in its closet. Out came the Mint survey confirming just that.

Though I do not completely agree with their process of arriving at the conclusion. Mint mentioned  a strong board with some big names. The problem is along with Raju and PwC it is the board members which screwed up Satyam. Sure it has a ISB dean a Harvard professor but seriously – board or independent directors means nothing.

TCS which comes from Tata stable should be a better governed company. Reason is simply this : If Satyam screws up it is the only one company which will suffer. Though it has 6 subsidiaries and 2 Maytas infrastructure companies. The Satyam brand is not stamped on those 10 other companies. It is not the same case with the Tata group. Every company has a Tata brand on it. Either on the top or as a foot note.

The ripple affects could also be very severe for Tata group companies. So everybody will be on their heels. I hope they do. But Infy still rules.

8 most trusted  companies as per the survey :

  1. Infosys
  2. Tata Communications Ltd
  3. Tata Consultancy Services
  4. Tata Motors Ltd
  5. Tata Power Company Ltd
  6. Tata Steel Ltd
  7. HDFC Ltd
  8. HDFC Bank

Tata dominated the trust worthy companies. Infosys topped it. No surprises so far. But in spite of being the billionaires and stuff Reliance did not figure in the list. Why is that?

Or should I ask : Is Tata group  a most valued enterprise than Reliance group?

I remember someone commented on this blog that only good news comes out of Infosys and bad news never makes its way to media. Not sure if that is true or not but I would like to ask yet another question : Is Infosys the most valuable company?

*Image credit : thorniside via flickr

  1. annadhatha MK Rao, Economist says

    Re-Yuan Trade:

    India must follow China which made agreements with Brazil that allows payment for imports from China in Yaun and imports from Brazil in Lira.

    Further, China made similar agreements with several other countries like: Singapore, Malaysia, Korea, Argentina etc.

    After visiting China, HDFC MD & CEO Aditya Puri made a bright proposal to Indian government to follow China and RBI kept mum on this crucial issue for reasons best known only to it.

    At least now, we need to work on right priorities and must learn to take good ideas from eminent people like Aditya Puri.
    Through this golden proposal, Aditya Puri proved a fact that he can make the best finance minister, prime minister and policy maker of India.

    Lastly, the entire world must follow China in this aspect.

  2. annadhatha MK Rao, Economist, Age: 65 says

    Being a mathematician, John Nash took Nobel Laureate for his economic theory (Nash Equilibrium), whereas, Scientist NVSN Murthy has single-handedly propounded two theories (one in metallurgy i.e. Nori Hardenability Theory and one in economics i.e. Nori Economic Theory – Norinomics).

    Interestingly, there is no evidence that John Nash had propounded a theory in his mother field (mathematics) like Scientist NVSN Murthy who propounded a theory in his mother field (metallurgy) as well as in economics.

    Therefore, Scientist NVSN Murthy deserves two Nobel Laureates.
    The concerned authorities must look into the matter and do justice to this double-theory scientist of Indian origin.

    Neglecting Indians is improper.

    Annadhatha MK Rao, Economist, Age: 65

  3. annadhatha MK Rao, Economist, Age: 65 says

    Humanitarian, Philosopher, Philanthropist, Economist, Reformist, Akshara Brahma and Scientist NVSN Murthy is the greatest gift of God to our mother planet earth ever since the birth of earth.

  4. annadhatha MK Rao, Economist, Age: 65 says

    Our selfishness seldom permits us to work for a common cause like scientist NVSN Murthy.

    At least, let us be selfishness enough to take the benefit of the priceless recommendations of our candle-like scientist NVSN Murthy for providing peace, progress and prosperity to individuals, institutions and nations.

    Annadhatha MK Rao, Economist, Age: 65

  5. annadhatha MK Rao, Economist, Age: 65 says

    The easiest thing in this world is to criticize contributing giants like Infosys Narayana Murthy, Azim Premji, Ratan Tata etc. These negative comments are nothing but jealousy.

    Let us quit this nasty mindset since it drastically cuts our life span through deadly diseases.

    Finally, let us involve in a constructive and productive activity.

    Annadhatha MK Rao, Economist, Age: 64

  6. annadhatha MK Rao, Economist says

    Akshara Brahma and Scientist NVSN Murthy gave numerous priceless recommendations to benefit people, institutions and nations of our world. He has meticulously loaded simple words with volumes of knowledge and wisdom.

    Let us be wise enough to use this un-ceasing wealth to benefit the people and nations of our world.

    By: Annadhatha MK Rao, Economist, Age: 64

  7. annadhatha MK Rao, Economist says

    India and Indians become rich and happy by adopting the Tax Laws recommended by India’s globally reputed scientist NVSN Murthy since these tax laws have all the potential to multiply business growth, employment opportunities, industrial growth and national revenue in a simple, effective and efficient manner.

    By all means, these laws are 100% pro-public, pro-industry, pro-entrepreneur, pro-taxpayer, pro-employee, pro-employer, pro-investor and pro-government. What more can we ask from scientist NVSN Murthy who is serving like a candle. For this priceless contribution to India and Indians, scientist NVSN Murthy richly deserves Bharat Ratna along adequate reward.

    Even after celebrating 64 independence days, India and Indians did not see significant progress because India and its policy makers are not receptive to good ideas.

    Finally, India and Indians do not prosper in the right direction if the recommendations of scientist NVSN Murthy are not implemented.

    Lastly, we must quickly realize that we cannot change the fate of our nation and people if we do not change our mindset. We must also quit our selfish attitude, power and popularity games, race for name and fame, politics for position and popularity, credit stealing attitude, egotism, dogmatism, bureaucracy, demonocracy, hypocrisy and red-tapism for a common cause.

    Let us also realize that India and Indians did not fail due to lack of knowledge or talent, we miserably failed on every count only due to lack of open-mindedness essential for adopting ideas coming from eminent people like scientist NVSN Murthy.

    By: Annadhatha MK Rao, Economist, Age: 64

  8. annadhatha MK Rao, Economist says

    Nations ignoring Norinomics seldom prosper since Norinomics (Nori Economic Theory & Principles propounded by globally reputed scientist Nori Murthy) alone has the required potential to form the strongest and flawless base derived from the finest economic principles.

    Thus Norinomics is the best economic theory ever propounded on earth, neglecting it is neglecting irreversible and everlasting prosperity.

    Hence scientist Nori Murthy richly deserves Bharat Ratna and Nobel Laureate for this priceless and ageless contribution to humanity across the length and breadth of the globe.

    By: Annadhatha MK Rao, Economist, Age: 64

  9. Bhaskar says

    Its good as of now but not sure until unless we hear something like Satyam. Satyam also good company so far but now we came to know what it is. I used to respect Narayana Murthy but due to his comments on satyam recently, I lost faith in him and I cannot guarantee Infosys is trust worthy

  10. Mr Moorthy says

    Infosys is no demi god!! They too have skeletons under the closet, its time for the industry to open up and know on the un-written rules of the trade. Narayanmoorthy too knows there are lots under his carpet at Infosys, they too as part of Corporate governance open their doors for external vigilance on their activity.

    Have to scrutinise how Progeon was merged with Infoys. This was similar to Satyam merger with Maytas. Lucky is that they made through the merger and succeeded in bringing more revenue in books. If am right the exageration of accounts at Infy would be around 45% straight. As a sensible public, they too open doors for public scrutiny because General Public should know how this is being done, because hectares of land are grabbed from the Government which are public property, isnt it friend? They can claim clean in accounts not in other deals like taking more subsidry, tax benefits and export benefit which are none but tax payers money, which are taken from even from the soap you buy – either direct or indirect!

    Infosys modus operandi for accumulation of revenue may not be the same of the other failed company? They follow different route to source book figures. Secondly they are Land Mafias in disguise. Lots of land deals done under FTZ, EPZ, SEZ for collateral has to be scrutinised.

  11. piyush kumar says

    After the satyam episode faith of people has destroyed from these company,how long these company remain clean is important.What is cooking inside it is nobody knows, one of the most trusted & ethical companies is already shown there ethics in sexual harassment case last year and many more may come in future.If we want to really implement and improve the culture of corporate then we have to start from the base.Our Business schools are little bit responsible for what has happen today.the pedagogy in which they educate is responsible.Adding Buisness Ethics subject in curriculam is not enough,we have seen Enron,Lehman & now satyam but we have not learned anything we just cry and blame to other.Hope these trusted company retain there trust in future.

  12. Bibs says

    INFOSYS as the most tusted company, yes, may be.
    But we cannot say the same for the members on this board.

    NRN is considered to be an idol for many entrepreneurs. He is regarded to be a matured son of the soil. I bet if the learned section of Karnataka vote for a Lifetime Achievement Award, it will undoubtedly go to NRN.

    Such words about Satyam, from such a highly esteemed person like NRN looks absolutely inappropriate. At least, he should have had a look at his own backyard prior to making such comments in the media.

    Has he forgotten about the other Murthy from Infosys? The same person who was one of the highest salaried person in the industry, who was also a board member of Infosys. Certainly NRN cannot have such a short term memory. Has he overlooked that Mr. Phaneesh Murthy was involved in a sex racket and had to resign for the same.

    So, Mr.Narayan Murthy, my question to you is,does not Infosys become a tainted firm too? Considering the fact that such an invaluable asset of your board was involved in such an heinous act!! Can we not ‘brush’ Infosys with the same hue of taint ?

    Signing out with a slightly adulterated respect for you,
    Bibhu

  13. Jeeten says

    I do not believe that Infosys should be awarded the most trusted company. After the recent Satyam developments, the way in which the Infosys Founders and Board were free to speculate and provide their unruly comments (for satyam employees, especially), brings some thoughts on table. Teh foremost being of corporate governance in Infosys itself. The way Narayan Murthy said that, “Infosys will not hire anybody from Satyam” and “Who will touch such a tainted company” seemed that how much unrest this case has created in Infosys. Are their books too cooked-up ? If not, then why is he passing bad remarks on 53k innocent employees of Satyam ? They were not involved in the fraud. At such moments of despair, our fellow visionaries are forgetting human kindness and are being inhuman just for the sake of few more projects or clients ?
    Till now i myself had so much to see in Narayan Murthy as a visionary and as a budding entrepreneur i always looked up to him and his life achievements, but his recent ideas and comments really made me wonder if we(India) really have visionaries like JRD Tata ?

  14. Arun Prabhudesai says

    Hey GP…thanks for dropping by. Having worked with couple of Large IT companies, I agree with you about labour arbitrage, however at the same time there other reasons as well – Like process maturity, language, Engineering background personnel etc etc…
    otherwise these companies would have already shifted to Vietnam , Philippines , china , Russia , Eastern European countries…

    Yes, I do not have any doubt that competition will surely come in…but as of now, these outsourcers and very few options to play with

  15. gp says

    All these so called Top IT companies in india unfortunately are nothing more than glorified IT MANPOWER companies whose only model seems to labour arbitrage ( cheap labour) and IT coolies to the world (bulk of business is sw maintenance , monitoring , testing, infrastructure management ) .Limited size of qualified labour pool size means profit margins will keep coming down . Only those companies survive who can innovate will survive in long-term and this labour arbitrage model will keep shifting to cheaper parts of world like Vietnam , Philippines , china , Russia , Eastern European countries
    Here are some of the observations : http://blog.pagux.com/2007/03/30/time-to-move-up/

  16. Sriram Vadlamani says

    @Vijay : I am glad you mentioned the Phaneesh Murthy episode. My friend mentioned to me yesterday about it. That was on the back of my mind when I said : “might have less skeletons in its closet”.

    Great comment. Thanks

  17. Vijay says

    Agree with yash.Infosys lets only good things out of it stable in to media.Bad things never come out.How many of us remember the story of phaneesh murthy sex harrasment case? just doing a google search of “infosys scandal phaneesh murthy” doesn’t earn more than 180 results.NRN buried it in ground….

  18. Arun Prabhudesai says

    Yash…very good point made…I second your opinion completely..

  19. kartik says

    Yeah the value of a good PR cannot be understated, but I don’t think Google is into PR. Internet works by word of mouth. If you have a good product then people will become unpaid evangelists that is the power of internet. This is the reason why Reliances’ BigAdda.com inspite of massive advertisement failed to reach its projected expectations.

  20. Yash says

    Infosys is a good company with a credible management. But one thing that is worth noting about Infosys is its well oiled PR engine! Infosys wasn’t the first IT company in India to cross $1b mark but when they did they blew their trumpet with full force. TCS had achieved the mark months before Infy but it almost went unnoticed. Infosys knows value of good PR and publicity. Brand Narayan Murthy was created for the same cause. Ordinary people might not be knowing about Mr Ramadorai but everybody knows Mr. Murthy. He’s everywhere – on the television, giving interviews, writing books, feuding with politicians over social and infrastructure causes etc. Infosys was the first to recognise the value of building the brand and that’s why it is at the top slot in all such surveys. And there’s nothing wrong in that. The likes of TCS and HCL are taking a note of it only now. If you doing good work, its necessary to let people know. All great companies do that – Apple, Google, Microsoft are case in point.

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