Business: Ethics, Governance & Risk Assignment

Ans 1.

Introduction:

In today's rapidly evolving business landscape, sustainability and safety have become critical
considerations for companies across industries. The principle of providing goods and services
in a sustainable and safe manner is a fundamental aspect of responsible business conduct.
This principle ensures that companies prioritize the well-being of their stakeholders,
including customers, employees, communities, and the environment. In this executive
summary, we will explore how Infosys, a global leader in consulting and information
technology services, is exemplifying this principle through its business practices. We will
refer to the Business Responsibility & Sustainability Report (BRSR) of Infosys for the years
2022-23, which outlines the company's commitment to sustainable and safe operations.

Concept:

Sustainability and safety are interconnected concepts that require businesses to adopt a
proactive approach to mitigate environmental impact and ensure the well-being of all
stakeholders. Infosys recognizes the importance of these principles and has integrated them
into its core business strategy. By aligning its operations with sustainable practices and
prioritizing safety measures, Infosys aims to create long-term value while minimizing
negative externalities.

1. Sustainable Operations:
Infosys has implemented a range of initiatives to reduce its environmental footprint
and promote sustainable practices. The company has set ambitious targets to achieve
carbon neutrality and has made significant progress towards this goal. According to
the BRSR, Infosys reduced its per capita electricity consumption by 44% between
2015 and 2023. This achievement is a result of various energy conservation measures,
including the deployment of energy-efficient technologies and renewable energy
sources.

Furthermore, Infosys has implemented a comprehensive waste management system to

minimize waste generation and promote recycling. The company actively encourages its
employees to participate in recycling programs and has achieved an impressive recycling rate
of X% during the reporting period. By adopting circular economy principles, Infosys aims to
maximize resource efficiency and minimize waste throughout its operations.

2. Employee Safety and Well-being:

Infosys recognizes that its employees are its most valuable asset, and their safety and
well-being are of utmost importance. The company has implemented robust health
and safety measures to ensure a safe working environment for its employees. These
measures include regular safety audits, training programs, and the provision of
personal protective equipment (PPE) where necessary.

Moreover, Infosys has prioritized employee well-being through various initiatives. The
company offers comprehensive healthcare benefits, including mental health support and
wellness programs. These initiatives aim to create a conducive work environment that
promotes the physical and mental well-being of employees.

3. Product Safety and Customer Satisfaction:

As a provider of IT services and solutions, Infosys places great emphasis on
delivering products that are safe and reliable. The company adheres to stringent
quality control processes to ensure that its products meet the highest safety standards.
Infosys continuously invests in research and development to enhance the quality and
safety of its offerings.

Additionally, Infosys is committed to customer satisfaction and actively seeks feedback to

improve its products and services. The company maintains an open line of communication
with its customers to address any concerns promptly. By prioritizing customer safety and
satisfaction, Infosys builds trust and long-term relationships with its clients.

Application:

Infosys has demonstrated its commitment to the principle of providing goods and services in
a sustainable and safe manner through various initiatives and practices. The company's
sustainability efforts extend beyond its internal operations and encompass its entire value
chain. Infosys collaborates with suppliers and partners to promote sustainable practices and
expects them to adhere to similar standards.

The company's commitment to sustainability and safety is evident in its corporate governance
practices as well. Infosys has a dedicated board committee responsible for overseeing
environmental, social, and governance (ESG) matters. This committee ensures that the
company's operations align with its sustainability goals and monitors progress towards
targets.

Moreover, Infosys actively engages with communities and contributes to social development
initiatives. The company focuses on education, healthcare, and environmental conservation
through its corporate social responsibility (CSR) programs. This holistic approach reflects
Infosys' commitment to creating a positive impact beyond its immediate business operations.

Conclusion:

Infosys has embraced the principle of providing goods and services in a sustainable and safe
manner, as outlined in the National Guidelines on Responsible Business Conduct. The
company's commitment to sustainability is evident through its various initiatives to reduce
environmental impact, prioritize employee safety and well-being, and deliver high-quality,
safe products and services to its customers. Infosys' efforts extend beyond its organizational
boundaries, encompassing its entire value chain and fostering partnerships with suppliers and
communities.

Ans 2.

Introduction:
As an MBA student with a flair for articulation, I am excited to delve into the corporate
governance philosophy and the composition of the Board of Directors at Infosys, a leading
global technology services and consulting company. Infosys' commitment to robust corporate
governance practices is a crucial aspect of its business strategy, and it serves as a shining
example for other organizations to emulate. By analyzing the profiles of the Board members,
their skillsets, and their fiduciary responsibilities, I aim to provide a comprehensive
understanding of the governance framework that underpins Infosys' success.

Concept and Application:

Infosys' Corporate Governance Philosophy
Infosys' corporate governance philosophy is rooted in its core values of integrity,
transparency, and accountability. The company's approach to governance is guided by the
principles of fairness, ethics, and responsible decision-making, as outlined in its Annual
Report for the financial year 2022-23, available at https://www.infosys.com/investors/reports-
filings/annual-report/fy2023/index.html.

Infosys' Board of Directors: Composition and Profiles

The Infosys Board of Directors is composed of a diverse and highly qualified set of
individuals, representing a blend of executive, non-executive, and non-executive &
independent members. This diverse composition ensures a balanced and independent
decision-making process, which is essential for effective corporate governance.

Nandan Nilekani (Non-Executive & Non-Independent Chairman)

Nandan Nilekani, the Non-Executive and Non-Independent Chairman, is a co-founder of
Infosys and a renowned technology visionary. He has a deep understanding of the company's
history, strategy, and industry dynamics, which he leverages to guide the Board and the
management team. Nilekani's extensive experience in technology, public policy, and
entrepreneurship has been invaluable in shaping Infosys' strategic direction.

Salil Parekh (Chief Executive Officer and Managing Director)

Salil Parekh, the Chief Executive Officer and Managing Director, has been instrumental in
driving Infosys' transformation and growth in recent years. With his extensive experience in
the technology and consulting sectors, Parekh has successfully led Infosys' shift towards
digital services and solutions, positioning the company as a global leader in the industry.

Kiran Mazumdar-Shaw (Non-Executive & Independent Director)

Kiran Mazumdar-Shaw, a Non-Executive and Independent Director, is a renowned
entrepreneur and biotechnology pioneer. Her diverse expertise in the fields of science,
technology, and business management serves as a valuable asset to the Infosys Board.
Mazumdar-Shaw's insights and strategic guidance have been crucial in shaping Infosys'
innovation and sustainability initiatives.

D. Sundaram (Non-Executive & Independent Director)

D. Sundaram, a Non-Executive and Independent Director, is a seasoned finance and
management professional with extensive experience in the corporate sector. His expertise in
financial management, risk oversight, and corporate governance has been instrumental in
strengthening Infosys' financial practices and ensuring the company's long-term
sustainability.
Board Committees and Other Directorships
The Infosys Board is supported by various committees, such as the Audit Committee, the
Nomination and Remuneration Committee, and the Corporate Social Responsibility
Committee, among others. These committees are composed of Board members with relevant
expertise, ensuring efficient and effective oversight of the company's operations.

Additionally, several Infosys Board members hold other directorships, which allows them to
bring diverse perspectives and best practices from different industries to the table. This cross-
pollination of ideas and experiences enhances the Board's ability to make well-informed
decisions and uphold the highest standards of corporate governance.

Conclusion:
Infosys' corporate governance framework is a testament to its commitment to responsible and
transparent business practices. The diverse and experienced Board of Directors, with their
deep understanding of the company's operations, industry dynamics, and fiduciary
responsibilities, play a crucial role in guiding Infosys towards sustained growth and value
creation for all its stakeholders.

As an MBA student, I am particularly impressed by the way Infosys has seamlessly

integrated its corporate governance philosophy into its overall business strategy. The Board
members' dedication to their fiduciary duties, their expertise in various domains, and their
collaborative approach to decision-making have been instrumental in solidifying Infosys'
position as a global leader in the technology services industry.

Ans 3a.

Introduction:
As an MBA student with a keen interest in business ethics, I am well-equipped to analyze the
ethical dilemmas presented in the scenario you have described. The situation involves a sales
manager from a mid-size IT company who is faced with a request from a purchase manager
of a large company to make a donation to the purchase manager's favorite charity as a
condition for securing a significant order worth Rs. 50 lakh. This scenario raises several
ethical considerations that must be thoughtfully examined.

Concept and Application:

The primary ethical dilemma in this situation lies in the potential conflict of interest and the
blurring of professional boundaries. The purchase manager is leveraging his position and the
company's need for the order to extract a personal favor, which raises concerns about the
integrity of the business relationship and the decision-making process.

1. Conflict of Interest:
The purchase manager's request for a donation to a charity that is closely linked to his
personal life, managed by his wife, creates a clear conflict of interest. By making the
donation a condition for the order, the purchase manager is using his professional
authority to advance his personal interests, which undermines the principles of fair
and transparent business dealings.

2. Undue Influence and Bribery:

The purchase manager's demand can be interpreted as a form of undue influence or
bribery, where he is leveraging his position of power to extract a personal benefit.
This practice goes against the principles of ethical business conduct and may be
considered an illegal or unethical practice in many jurisdictions.

3. Corporate Governance and Compliance:

From a corporate governance perspective, the sales manager's acquiescence to the
purchase manager's request may raise concerns about the company's internal controls,
policies, and compliance with anti-corruption and anti-bribery regulations. The
company's reputation and stakeholder trust could be jeopardized if such practices are
discovered or become public knowledge.

4. Moral Obligation and Ethical Decision-making:

The sales manager, as a representative of the IT company, has a moral obligation to
uphold the organization's ethical standards and make decisions that are in the best
interests of the company and its stakeholders. Succumbing to the purchase manager's
request, even though it may lead to a significant order, could be seen as a compromise
of the sales manager's ethical principles and fiduciary duties.

Conclusion:
In this scenario, the ethical dilemma is multifaceted, involving considerations of conflict of
interest, undue influence, corporate governance, and the moral obligations of the sales
manager. While the prospect of securing a substantial order may be tempting, the sales
manager must carefully weigh the potential consequences of acquiescing to the purchase
manager's request.
As an MBA student, I would advise the sales manager to politely, but firmly, decline the
purchase manager's demand for a charitable donation. Instead, the sales manager should
reiterate the company's commitment to ethical business practices, emphasize the importance
of maintaining professional boundaries, and explore alternative ways to secure the order that
do not compromise the organization's integrity.

Ans 3b.

Introduction:
As an MBA student with a strong ethical foundation, I am well-equipped to navigate the
challenging situation presented in the scenario. The sales manager is faced with a request
from a purchase manager of a large company to make a donation to the purchase manager's
favorite charity as a condition for securing a significant order worth Rs. 50 lakh. This
scenario requires a thoughtful and principled approach to address the ethical dilemma and
uphold the organization's values.

Concept and Application:

To handle this situation effectively, I would recommend the following step-by-step process:

1. Gather Information and Assess the Situation:

The first step is to gather as much information as possible about the request, the
purchase manager's motivations, and the potential implications for the company. This
includes understanding the company's policies, procedures, and ethical guidelines
regarding such requests, as well as any legal or regulatory considerations that may
apply.

2. Identify the Ethical Dilemma:

Carefully analyze the situation to identify the key ethical dilemmas involved. In this
case, the primary concerns are the conflict of interest, the potential for undue
influence or bribery, and the implications for the company's corporate governance and
compliance.

3. Consult with Relevant Stakeholders:

It is essential to consult with relevant stakeholders, such as the company's legal
counsel, compliance officer, and senior management, to understand the organizational
perspective and ensure alignment with the company's policies and principles.
 4. Assess the Potential Consequences:
Thoroughly evaluate the potential consequences of both accepting and declining the
purchase manager's request. Consider the short-term benefits of securing the order, as
well as the long-term implications for the company's reputation, compliance, and
stakeholder trust.

5. Develop a Principled Response:

Formulate a response that upholds the company's ethical principles and fiduciary
duties, while also considering the business needs and the relationship with the
purchase manager. This response should be well-reasoned, backed by the company's
policies, and communicated with empathy and professionalism.

6. Communicate the Decision:

Clearly and tactfully communicate the decision to the purchase manager, explaining
the rationale and the company's stance on such requests. Emphasize the organization's
commitment to ethical business practices and the importance of maintaining
professional boundaries.

7. Explore Alternative Solutions:

If possible, explore alternative solutions that could accommodate the business needs
without compromising the company's ethical standards. This may involve negotiating
the terms of the order, proposing alternative forms of community engagement, or
finding mutually beneficial ways to address the purchase manager's concerns.

8. Document the Process and Decision:

Thoroughly document the entire process, including the analysis, consultations, and the
final decision, to ensure transparency and accountability. This documentation can
serve as a reference point and help establish a consistent approach to similar ethical
dilemmas in the future.

Conclusion:
Navigating the ethical dilemma presented in this scenario requires a thoughtful and principled
approach. As an MBA student, I would recommend the sales manager to firmly decline the
purchase manager's request for a charitable donation, while exploring alternative solutions
that align with the company's ethical standards and business objectives.