Human Resource

Management

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Project On

Ethical Issues in HRM

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Prof Guide. _____________

Acknowledgement

It was an immensely pleasurable experience in working on this project on the topic of, “Human Resource Management”

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due to which i got the opportunities to gain knowledge which enhanced our skills.

However, my efforts alone could not have been sufficient for completion of this project.

Invaluable advice & suggestion from large number of people have gone into this project. I am extremely grateful to all those people who have helped us in collecting valuable information & helping us in completion of this project. The foremost among them is our Prof. Guide ________________________ whose constant corrective guidance & motivation enabled a focused effort towards completion of the project.

Thank You Sir!!!!

Synopsis

Sr. Topic Page

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# #1 Introduction to Ethics 62 Ethical Issues in HRM 83 Ethical issues in Business 144 Infosys (Company details) 165 History 186 HRM at Infosys 217 HRD at Infosys 228 Employee Health Indicator 249 Retention Of Employee 2610 Training Programs at Infosys 2811 Case I ,II & III 30-

3612 Bibliography 38

IntroductionWhat is ethics?

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Ethics refers to the concept of what is right and wrong, moral and immoral. Ethical behavior is generally considered behavior that is in line with the accepted moral code, and that is proper. Unfortunately, however, there is not one clear answer to what is ethics or what is ethical, because both morality and ethics and relative terms.

What is Business Ethics?

Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts

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with the world at large, but also to their one-on-one dealings with a single customer.

Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.

Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.

Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor.

If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money these companies are making outweighs the fines applied. Billion

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dollar profits blind the companies to their lack of business ethics, and the dollar sign wins.

A business may be a multi-million seller, but does it use good business ethics and do people care? There are popular soft drinks and fast food restaurants that have been fined time and time again for unethical behavior.

Ethical Issues in HRM

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Ethical issues abound in HR activities. Areas of ethical misconduct in the personnel function include employment, remuneration and benefits, labor relations, health and safety, training and development, and HRIS (hr ethical issues)

Elaboration:-

Cash and incentives plans:-This includes base salaries, incentive plans, long term incentive plans, executive perquisites, and separation annual agreements.

Base salaries -

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The HR function is often presumed to justify a higher level of base salaries, or a higher percentage increase than what competitive practice calls for. In some cases, pressure is exerted to re-evaluate the position to a higher grade for the purpose of justifying a larger than normal increase.

Annual incentive plan – The HR manager is often forced to design and administer top-management incentive plans, at higher rates than what the individuals deserve. A common rationale presented to the HR executive for bending the rules is the fear of losing the outstanding executives, if higher incentives are not paid.

Long-term incentive plan - Just as with annual incentive plan, many HR executives have the responsibility of designing and administering the firm’s long term incentive plans, but in consultation with CEO and an external consultant. Ethical issues arise when the HR executive is put to pressure to favor top management interests over those of other employee’s investors.

Executive perquisites - Executive perquisites make the ethical standard of the HR executive difficult because their cost is often out of proportion to the value added. For example a story relates to Bangalore –based, losing making public sector undertaking who CEO spends 20 lakhs to get swimming pool built at his residence

Performance Appraisal -

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Performance appraisal lends itself to ethical issues. Assessment of an individual’s performance is based on observation and judgment. HR manager are expected to observe the performance in order to judge its effectiveness. Ethics should be the cornerstone of performance evaluation, and the overall objective of high ethical performance reviews should to provide an honest assessment of the performance and mutually develops a plan to improve the rate’s effectiveness.

Race, Gender, Age, and Disability – The practice of treatment of employees according to their race, ethnic origin, sex, or disability has largely been stopped. A framework of laws and regulations ahsevolved that has significantly improved work place behavior. No enterprise today dare to publicly state it denies minorities, woman, and the disable opportunities for employment, remuneration, and growth prospects different from those given to others.

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In this environment the role of HR function is to:

Monitor the principles and norms of the enterprise to ensure that they reflect the values of the society as expressed in its law.

Monitor the selection, rewards, development and, the appraisal system to ensure that they are consistent with the principles and norms.

Vigorously pursue violations and, when necessary, vigorously work to defend the enterprise against unfounded allegations.

Other Issues related are:-

Employment IssuesWhile discrimination and harassment situation receives mort publicity, HR practitioners are more likely to face ethical dilemmas in the areas of employee hiring. One challenge commonly encountered is pressure to hire a relative o a friend of a highly placed executive. Another area related to employment is that of faked credentials submitted by a job applicant. While discovery of this kind of fabrication usually leads to termination

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of the employment, the choice becomes difficult when the applicant has a blend of skills set and a proven track record with his or her previous employers.Privacy issuesPrivacy issues to protecting a person’s private life from intrusive and unwarranted actions. The employee believes that his or her religious, political, and social believes as well as personal life style are private matters and should be safe guarded from being snooped or analyzed. Exceptions are permitted grudgingly only when job involvement is clearly involved. For example, it may not be inappropriate to intrude into an employee’s private matter if it is suspected that he or she discusses with competitor, through email messages, the specification of newly developed product not yet launched into the market.

Safety and healthMuch of the industrial work is hazardous. This is because of the extensive use of high speed and noisy machinery, production processes requiring high temperature, an increasing reliance on chemical compounds .Accidents, injuries and illnesses are likely to occur under these circumstances. Over past decade, new categories of accident and illness have emerged, including the fast growing job safety problem of office injuries.

Restructuring and LayoffsRestructuring and consequent layoffs have become relevant because of poor management, but incompetence does not become unethical. There are ethical implications in the process by which termination decisions are made and actions taken. For

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example if restructuring requires closing a plant , the process by which that plant is chosen ,how the news will be communicated, and the time frame for completing the layoffs are ethically important .If conducted in an atmosphere of fairness and equity and with dignity of the affected individuals in mind, the action is ethical.

Ethical DilemmasSeveral ethical dilemmas comfort an HR manager. The ethical dilemmas arise from three sources-faces to face ethics, policy ethics, and functional area ethics.

Face to face ethicsThese arise mainly because there is a human element in most business transactions. Business is composed of this human transaction; it should not be surprising that face to face ethical dilemmas arise often. It is likely that the quality assurance man overlooks minor defects and approves a lot delivered by a supplier because of the personal relationship that the two enjoy.

Corporate policy ethicsCompanies are often faced with ethical dilemmas that affect their operations across all departments and divisions. The consequences of employment contraction in labor intensive basic industries because of the improved methods of production .Modern technology has replaced older methods of production which has in turn resulted in hundreds being jobless. The ethical burden of deciding corporate policy matters normally rests upon a company’s HR management. The Hr manager and

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directors are responsible for making policies and implementing them too. The ethical content of their policies can have enormous impact throughout the company. It can set an ethical tone and send right signals to all employees as well as external stakeholder.

Functional area EthicsFunctional area of a business is likely to comfort ethical issues. Accounting is a critical function of any business. Accounting statements reveals to the manager and owner the financial soundness of a company. Managers, investors, regulating agencies, tax collectors and trade unions rely on accounting data to make decisions. Honesty, integrity accuracy are absolute requirements of the accounting functions. Account standard ensure a high level of honest an ethical accounting disclosure.Ethical dilemmas crop up in purchasing departments where strong pressure is to obtain the lowest possible prizes from suppliers and where too felt similar need it bag lucrative contracts. Bribes, kickbacks, and discriminating pricing are temptation to both parties.

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Ethical issues in business

Ethical issues arising from the nature of markets:-

- The 18th Century economist Adam Smith demonstrated how in a free market the self interest of producers and consumers will produce an outcome desirable to all concerned- But the market can also lead to inequality of income, wealth and market power:

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Monopoly suppliers can exploit consumers Monophony buyers can exploit supply firms

Worldwide inequality of income can result in unethical practices such as the child labor

What is an Ethical code?

This is a set of principles governing morality and acceptable behaviour

It is likely to cover:

Personal behaviour e.g. when dealing with customers and suppliers

Corporate behaviour e.g. when negotiating deals

Behaviour towards society e.g. when recruiting

Behaviour towards the environment e.g. when deciding on process

Ethical audit

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This is an audit of all the firms’ activities

Purpose:

To check that ethical principles are being pursued To check the extent to which actions are consistent with the

organization’s stated ethical intentions And to establish action plans if they are not.

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4.8 billion (FY 10).

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Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers.

Our offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.

Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk.

Infosys has a global footprint with 63 offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 114,822 employees as on June 30, 2010.

Infosys takes pride in building strategic long-term client relationships. Over 97% of our revenues come from existing customers (FY 10).

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HistoryEstablished in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 114,000 employees. From a capital of US$ 250, Infosys have grown to become a US$ 4.8 billion company with a market capitalization of approximately US$ 33 billion.

In our journey of over 29 years, we have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. We pioneered the Global Delivery Model and became the first IT company from India to be listed on NASDAQ. Our employee stock options program created some of India's first salaried millionaires.

Milestones Achieved -

2009

Infosys selected as a member of The Global Dow Employee strength grows to over 100,000

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2008

Infosys crosses revenues of US$ $ 4.18 billion Annual net profits cross US$ 1 billion

2007

Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000+

Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani is appointed Co-Chairman of the Board of Directors

Opens new subsidiary in Latin America

Reports Q2 revenue of over US$ 1billion

2006

Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees grow to 50,000+

N. R. Narayana Murthy retires from the services of the company on turning 60. The Board of Directors appoints him as an Additional Director. He continues as Chairman and Chief Mentor of Infosys

2005

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Records the largest international equity offering of US$ 1 billion from India

Selected to the Global MAKE Hall of Fame

2004

Revenues reach US$ 1 billion Infosys Consulting Inc. is launched

2003

Establishes subsidiaries in China and Australia Expands operations in Pune and China, and sets up a

Development Center in Thiruvananthapuram

2002

Touches revenues of US$ 500 million Nandan M. Nilekani takes over as CEO from N.R.

Narayana Murthy, who is appointed Chairman and Chief Mentor

Opens offices in The Netherlands, Singapore and Switzerland

Sponsors secondary ADS offering

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Infosys and the Wharton School of the University of Pennsylvania set up The Wharton Infosys Business Transformation Awards (WIBTA)

Launches Progeon, offering business process outsourcing services.

2001

Touches revenues of US$ 400 million. Opens offices in UAE and Argentina, and a Development Center in Japan

N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most influential businessmen in the world

Infosys is rated as the Best Employer by Business World/Hewitt

2000

Touches revenues of US$ 200 million

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Opens offices in France and Hong Kong, a global development center in Canada and UK, and three development centers in the US

Human Resource Management at

Infosys Infosys currently has 1.13 lakh employees compared to 1.04

lakh same period last year. The company recruited around 9,300 people this quarter (net

addition of 3,914). Hiring outlook for the next year is projected to be around 30,000 people, including 19,000 campus hires, 5,500 laterals, 2,000 overseas hires (in China, Manila, the US and Europe) and the rest for Infosys BPO.

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The attrition level stood at 13.4 per cent as of March 2010 compared to 11.6 per cent in the previous quarter and at 11.1 per cent during the same period last year. About 4,500 people moved out of the organisation in the last quarter

Infosys spend close to Rs 590 crore for salary hikes and promotions. The increments would range between 13 per cent and 17 per cent for junior to mid-levels and about 10 per cent for senior leaders, he said.

Overseas employees (onshore) would see a two-three per cent increase in their salaries. The incremental impact on margins would be around three per cent.

Infosys has created history once again in the human resource area with a “The incremental cost because of this exercise will be about $134 million, the largest in the IT industry in India so far,” said Mr T. V. Mohandas Pai, member of the Board and Head, HRD and Education and Research, Infosys.

HRD at InfosysIntroduction of i-Race - iRace - Infosys Role and Career Enhancement - was introduced in October 2009. It was an extremely large and complex exercise in which

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24 career streams were created. Around 65 managers had worked on it for 18 months. The only way Infosys could have done it was during the slowdown because such a thing would not have been possible during a normal day.

Infosys needed to create career streams where growth can be no longer defined by movement up. In this war for talent, Indian companies have been promising promotion in every two years. But employees continue to do the same job - they get a new designation, new salary, new compensation, this is tricking the person. In actual terms, a change of job and a promotion means that one is doing something else, something which is more complex and at least 50 per cent different than what one was doing before.This is compulsory for all employees. We did not provide such a choice. Because this is a technology company, you should work on technology. Earlier we used to allow a four-five year old to become a project manager, today we will not.One has to understand that when there is growth, there is more number of promotions; it is not because you are being promoted, but it is because the company needs more jobs. In slowdown number of jobs that opened up was lesser, but people misunderstood it to be due to iRace.

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I Race & its relation to clients & pricing

Employees are important stakeholder in any initiative as ultimately they are the ones who would get impacted and will have to drive the initiative. So employee aspiration is taken and given due note in the whole career path making of iRace.The point why Infosys introduced it is because skill is becoming a commodity and pricing is continuously being questioned. The company is meant for the clients.

For the last few years clients have been complaining about lack of technically strong people. Indian companies have been continuing to get their people very quickly into people management. As a result, a person works on technology for just four to five year and then moves up to management.Customers want a ten-year experienced technical person, and we are providing them a three-year old, which they can get in the US. So through iRace, Infosys intend to give you high value at work, high technology at work for better pricing

Employee Health Indicators

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The HRD constantly worked on mapping the employee health indicators and we see that Infosys continues to be the most sought-after company. In one of the surveys, we were rated as India's "best company to work for.”

At Infosys, retention age is very high, so one would find a lot of old-timers. The average retention age at Infosys is five to six years, which is one of the highest in our industry, and they stay because they believe in Infosys.

Millions of resumes continue to float in every year for all levels. In campus, it had 93 per cent conversion of the offers. If about 60 per cent of the work force comes from campus, around 25-26 per cent of the employees comprise the people working with Infosys for more than 10-12 years. This number has not changed over many years.

This is not only because of the name Infosys, but also because of the diverse career options, like in product line, innovation, research.

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Retention of employees

The challenge is in retaining the people of working age group of three to five years because they are the most marketable and booming. It is natural for them to get attracted to outside offers. The only way companies can attract them is through different career streams, value addition and compensation. And it not only goes to competition, but also that the same group that goes for higher education. Our first quarter attrition rate is therefore higher than throughout the year.

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Infosys also have right retention plan, for the employees. It ensures that the value of employees resume increases by 50-60 per cent year-on-year, by staying in the company. And in terms of compensation it provides industry best long-term bonus for senior levels. It has mostly seen that the attrition rate of people working on specialized and rare skills, that are very much marketable in the industry, is very low than the industry average. It is as much as six percent, similar is the number of Infosys high performers attrition.

Infosys spend close to Rs 590 crore for salary hikes and promotions. The increments would range between 13 per cent and 17 per cent for junior to mid-levels and about 10 per cent

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for senior leaders, he said. Overseas employees (onshore) would see a two-three per cent increase in their salaries. The incremental impact on margins would be around three per cent.

Till 2004, we were largely operating in application maintenances business. Today this segment accounts for just 48 per cent of the overall business; the rest is all new lines of businesses, like consulting, enterprise solution, system integration, products. So people have more options - both on-site and off-site. So we have diverse options for people looking for career movements.

Training Programs in Infosys

The spirit of learn ability among our people and an organizational commitment to continuous personal and professional development keeps Infosys at the forefront in a fast-changing industry. Our framework for continuous learning at Infosys is built around a number of focused programs for our employees. These range from major initiatives such as the Infosys Leadership Institute to various ongoing management development and personal improvement programs. They

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complement a host of technology advancement and ongoing training options.

The training plan provides a sequence of inputs as individuals grow through their professional career. Commencing with a structured induction at the beginning to leadership trainings while assuming senior responsibilities. Training and development initiatives are available at each milestone and cover the following-

Technical training by Education & Research department:

We have an entry-level technical training program, which is for duration of 14 weeks. This program has been certified by educationists as being equivalent to a BS program in the US.

Quality Process Training:

Infosys has a strong focus on quality processes and methodologies. This training is tailored to the role that one is

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playing i.e. Software Engineer, Programmer Analyst, and Project Managers etc

Personal Effectiveness and Managerial Programs:

Programs to enhance the managerial capabilities and leadership abilities, to enable better customer satisfaction, achieve organizational vision and create high performing multicultural teams.

ILI: The Infosys Leadership System:

The Infosys Leadership System (ILS) and the Infosys Leadership Institute (ILI) address the issue of sustained growth in general and creates a formal and committed system for developing leadership capabilities in Info scions. The most significant attribute of the Infosys leadership development model is its partnership approach with the other groups in Infosys and the ownership of the entire process by the top management in what is termed as the ‘Internal Synergy Model’.

The education philosophy at Infosys has been to equip the participants with the know-how to find the best solution, rather than to teach ‘one way to do it’ and also to relate to real life situations We also encourage employees to go in for further part time and distance education programs with fee reimbursement subject to eligibility criteria laid down by the policy.

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Sustainability in Infosys

Infosys began its journey in India's business environment in the 1980s, in an era when endless red tape was imposed on the private sector. In this environment, building a company whose long-term objectives included operational longevity, high ethical standards and global respect demanded commitment to a core set of values. For Infosys, these values focus on instilling trust in

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our relationships with all stakeholders, including employees, investors, clients, society and the communities in which Infosys operates.

At Infosys, we believe that we must develop trust with the communities in which we operate to achieve longevity as a corporation. Through the Infosys Foundation, which receives a grant every year from Infosys (the last year's grant was US$ 3 million) we contribute to betterment of healthcare (hospitals, infrastructure), education (books, scholarships, refurbishment of infrastructure) and skills

With employees from over 70 nationalities, Infosys has built an enduring value system based on openness, honesty, fairness and transparency, which has earned us the confidence and trust of our clients. We enjoy +95% customer retention

Infosys has built one of the largest corporate education centers in the world. This 'finishing center', with an annual capacity of 15,000, provides engineering graduates who aspire to be employees with the equivalent of a Bachelor of Science degree in Computer Science from an American university

Case study 1

Business ethics for corporate growth :A case study of Infosys in India

Mission Statement of Infosys.  

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“To achieve our objectives in an environment of fairness, honesty and courtesy toward our clients, employees, vendors

and society at large’

Starting in 1981 in Bangalore, India with seven colleagues who dared to dream and who were lucky to be among the first in the economic liberalization of India in 1990s, Infosys has crossed billion dollars in revenues in 2004.The company has maintained a consistent growth and built a global company providing turnkey software development. There are many businesses that succeed-the unique factor about Infosys is in just over two decades it has built a brand known for ethical standards both inside and outside in the marketplace. The hypothesis of this paper is that corporate ethics promotes and inspires competitive advantage in a burgeoning marketplace.

Ethics in Corporate governance means the parameters which a company sets for itself for its functioning. Transparency and disclosures about accounts as well as other important issues have to be communicated to the stakeholders in a truthful and prompt manner. These build up confidence and trust in the marketplace. When issues like Enron and WorldCom hit the headlines, it is difficult to ignore business ethics. As consumers are getting increasingly aware of ethical issues, corporations have to respond to their concerns whether it is related to issues of environment, heath or any other concern.

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In many of public addresses, the chief mentor of Infosys has tried to set benchmarks in the business environment. In his address at the Confederation of Indian Industry leadership summit in September 2003, he said “CEO compensation is an issue that has to be decided by the board and shareholders. Three factors are to be considered for this-fairness, transparency and accountability". In the same speech he added, “ We have seen particularly in the west when the companies did not do well, when they had to fire thousands of employees at lower levels , the CEOs continued to get very good salary. That hurts people."

Such type of remarks, which when backed by action, helps a company in building up a band of stakeholders who back the growth of the company. Thus, the widely reported news in media that Narayana Murthy still lives in his modest flat establishes his company’s credibility in the Indian market where the gap between the rich and the poor is immense. When words and action do not match, people become cynical.

To verify how much ethics mattered for a person who wants to invest his money in a firm, a random survey of 50 persons was carried out in the national capital of Delhi . The question asked was

“If you have to invest in a company which of the two would you give more preference

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(a) Consistent growth of a firm which has exemplary ethical history.

(b) High profitability of a firm but which is largely non transparent and no clear ethical rules."

More than 80 percent supported the firm with a good ethical history. Though the other company was highly profitable, yet its non transparent nature made it a risky venture.

Conclusion “A business that makes nothing but money is a poor kind of business" Henry Ford, 1863-1947

.

Case 2Narayana Murthy: Infosys has no intention to spy on

employees

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NR Narayana Murthy, the chief mentor of Infosys Technologies Ltd, has said that the company does not intend to monitor or otherwise act on what its employees may do as private citizens delinked from the company.

Replying to a query by our columnist Dr Samir Kelekar, the Infosys chief mentor said, "Our policy, while encouraging usage of social media, reinforces some guidelines which protect employee and organization by reinforcing client and company confidentiality, intellectual property and code of conduct."

There were reports that Infosys, the second largest IT Company in India, was planning to implement a social media policy for its employees from August. The report said from August whatever an employee of Infosys posts on social media networks like Facebook, Orkut or micro-blogging site Twitter will be under the company's watch.

Mr. Murthy said that the company feels that such activities will be governed by larger societal mechanisms that are in place or will happen in the future. "Infosys considers its social media policy as an extension of its policies that cover other means of

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communication or media. Formal polices drive effective practices and we have designed our policy to do just that," Mr Murthy said in an email.

There were apprehensions that if put under curbs or watch, employees may start blogging anonymously. Allaying apprehensions about policing the usage of social media by Infosys employees, Mr. Murthy said nobody has said that the company will police such networks. "Please go not by what appears in newspapers but what you ascertain from the leaders of the company," he said.

According to a draft policy about social media networking prepared by Infosys, its guidelines only aim to provide helpful, practical advice to utilise electronic communication devices in a legal, ethical, and appropriate manner while wearing the Infosys badge. "This policy does not cover postings that you (the employee) may do as a private individual as long as you do not associate Infosys in any way with your personal identity or refrain from commenting about Infosys," the guidelines said.

Case study 3At Infosys, it is always ethics firstInfosys fines its CEO for breaking companies’

rules

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Infosys is not only an IT bellwether; it's also an ethical bellwether. The company, in perhaps the first instance in India, has fined its CEO Kris Gopalakrishnan for a technical violation of its insider trading rules.

The fine, Rs 5 lakh, would be donated to charity. Besides the CEO, an independent director, Jeffrey Lehman, also has been fined $2,000 for the same violation. This is the third time that Infosys has punished a member of its top brass. Earlier, it had imposed a penalty on its director Srinath Batni.

In a notice to the US SEC, Infosys said Mr Gopalakrishnan had inherited 12,800 equity shares from his mother on December 24, 2007 but had inadvertently failed to notify the company within one business day after the change in his shareholding.

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This, according to the company, constituted a violation of its insider trading rules.

But Infosys audit committee believed that Mr. Gopalakrishnan had no intention of contravening the rules and imposed the penalty of Rs 5 lakh and directed him to donate the amount to a charitable organisation of his choice. Mr. Gopalakrishnan has made the donation.

Mr. Lehman was also imposed a penalty of $2,000 for failure to correctly follow the procedure on sale of shares and that amount, too, has been given to charity

Infosys employees to face a strict ‘social networking code’

Infosys is all set force a social networking code of conduct on all its employees. Infosys already developed a social

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networking policy and they will bring that into action from next month. Due to several privacy breaches happening with their projects, and to prevent their employees sharing the project details to others on social networking sites, the India software giant has come up with this idea.Infosys calls this as ‘social media policy’ and it contains all the “dos and don’ts” clearly painting a ‘social media code’ on them.Infosys told this policy is similar to that of other global company’s policies and employees must strictly adhere to the terms in the policy.Infosys recently figured out tens of Infosys employees discussing the project details on their social networking sites like Twitter and Facebook.Infosys mostly concentrated on ‘project-client’ issues in their social media policy. Also the company would be asking their employees not to pass personal comments on other employees who are working in Infosys.Infosys strongly warned its employees not to breach this social media policy. If an employee found breaching it, he or she has to face the disciplinary action. In severe cases, he or she might even get kicked out of Infosys!Infosys employees need to be bit careful with their twitter of FB pages from now on!

Bibliography

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Official Website of Infosys :

-http://www.infosys.com/about/management-profiles/Pages/index.aspx

Other Websites referred:-

http://www.znews24.com/infosys-employees-to-face-a-strict-%E2%80%98social-networking-code%E2%80%99.html

http://searchwarp.com/swa11985.htm

http://www.rtiindia.org/forum/2606-infosys-always-ethics-first.html

https://careers.infosys.com/infyrms/infycareers/careers/training.asp

Books Referred

Human Resources & personnel mgt. :-Ashwad Thapa Books by Himalayan Publication

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