Showing posts with label Corporate Governance. Show all posts
Showing posts with label Corporate Governance. Show all posts

Monday, June 18, 2012

The Fallen Star


A perfect storybook example of American dream, Rajat Gupta crafted his illustrious journey in global corporate world by sheer endeavor and meritocracy, and he was the first Indian to be the CEO of McKinsey and Company at a time when heading a global MNC by any Indian was literally unheard of. With his meteoric success stories Rajat Gupta became an epitome of corporate hero who despite being orphaned at 18 earned degrees from elite institutes such as IIT and Harvard and joined McKinsey in early 70's. Since then he never looked back. Mr Gupta also became the board members of global corporate giants like McKinsey, Goldman Sachs, Proctor and Gamble, and AMR. But one fine day his understanding of ethics on corporate governance got blurred and he divulged insider information of Goldman Sachs board meeting to his friend and business partner Raj Rajaratnam, founder of Galleon Group. And the rest is an open book of trials and tribulations that he yearned from pumping out his affinity for greed.

Sometimes, I wonder why these demi-gods of society fall prey to mundane traps? Few more million bucks, more greed, and what not? Is that a gold standard of life that drives us crazy to do the unthinkable? Mr Gupta may be a brilliant Wall Street executive who has garnered both puffs and prestige for his meritocracy, but as a lesser mortal, he is no different than an ordinary criminal who springs into unlawful action by the trigger of a small bait. Why I am becoming a little harsher here is that today I just listened into the wiretap of FBI and the evidence against him for passing inside information is unmistakeably overwhelming. As a trusted board member of Goldman and Sachs he has breached the fundamental code of ethics. What it evokes now as how he could able to rise and rise for over three decades without any hurdle and the secret here is his dirty networking skills that propelled his tempo of corporate journey. For all his magical networking skills and relations with high and mighty in the corporate world and beyond he reached the acme, but the nadir was not far behind.

When FBI tapped the suspicious conversations between him and Rajaratnam, his facade broke into pieces like a piece of glass. Although Gupta was not directly involved in the trading in which Rajaratnam heaped one million profit; nevertheless, the modus operandi was more than suspicious. As a responsible corporate citizen he established a bad precedent, which is unforgivable. But here is a contrast, when Gupta was convicted for his crime on last Friday (June 15, 2012), another Indian-American Preet Bharara, the US Attorney in Manhattan, was the man who probed into this insider trading crime and stood unperturbed by the stellar image of Gupta. And the pointed difference is a matter of honesty and integrity, not the mundane achievements.  

Monday, May 2, 2011

The next wave @ Infosys

In the last thirty years since its inception, Infosys has established itself as the most respected IT company not only in India but also across the world for many reasons, primarily on the operational front, the fine balance of interest among employees, customers, and investors has always been their priority, furthermore the transparency in corporate governance is so exemplary that very few company across the world can dare to tread this path. From a seed capital of $250 to an annual turnover $6.2 billion IT behemoth, and from seven founding members to 135000 employees, in just 30 years, are an unprecedented business record that hardly any company can claim. In the post-independent India, many companies have formed and have displayed extremely alluring balance sheets, but when it comes to corporate governance, business ethics, integrity, empathy for employees, customers, and investors, and CSR initiatives, no one can ever match the height that Infosys has achieved.

And on April 30, 2011, Infosys has again created another history by inducting a non-founding board member KV Kamath, a veteran banker famous for his business transformation strategy at ICICI bank, to its highest post, the chairman of the board. The decision is obviously strategic as to why Kamath was chosen over Kris Gopalakrishnan although the latter has been promoted to co-chairman from the CEO. And simultaneously SD Shibulal, a founding member who is the current COO has also been promoted to CEO and MD, a position that now will bring in more challenges given the transformation Infosys is eying for. Over and above NR Narayana Murthy will remain as the chairman emeritus and the chief mentor, a position that no one can ever serve better than him.

Infosys at this point of time is on a crossroad. The IT back office operation which was the major revenue generator is now waning. Under these circumstances Infosys is aggressively looking forward to expand its consultancy business. Despite the fact that Kamath is not from IT industry, his extraordinary skills in corporate governance, business transformation through technology, and innovative business modeling will be of immense help for Infosys to mark a distinct position in IT consulting business like its key competitors such as Accenture and IBM. Being a banker for over four decades, Kamath has garnered exclusive business relations with almost all sectors, and this goodwill could work as miracle while acquiring new businesses in consultancy front. Infosys, for sure, is all set to ride on the new wave of transformation.

All the best Infosys for your continued exemplary service not only to your valued customers across the globe but also to millions of Indians on many fronts. May your mission for excellence long live.