05-12-2012, 06:39 PM
Why Don't We Try to Be India's Most Respected Company
He may not appear to be one, but N.R. Narayana Murthy is quite the contrarian. At a time when few Indians felt they could
become entrepreneurs, he founded Infosys with just $1,000 in the bank. When no one believed that India could offer the
world high-tech products, he dared to develop software services for export. In an era when conducting business ethically was
virtually unheard of, he created a values-based corporation. Today, as public anger against rampant corruption in India boils
over, Infosys faces a turning point, with Murthy stepping down as chairman. In this edited conversation with HBR’s Anand P.
Raman, Murthy reflects on his tenure and explains that for companies to be financially successful and good, leaders must
demonstrate that values matter at every turn, with every employee.
What did you mean by that in practice?
If we sought respect from all our stakeholders, I felt, we would achieve our vision. If you seek respect from customers, that
means you must deliver what you promise. If you seek respect from employees, you must treat them fairly and with dignity. If
you seek respect from investors, you must operate with transparency and accountability. If you seek respect from vendorpartners,
you must deal with them on merit. If you seek respect from governments, you must never violate any laws. If you
seek respect from society, you must live in harmony with it and create goodwill. If we could do all that, I argued, we would
attract customers, employees, vendors, and investors; revenues, profits, and market capitalization would follow.
After much discussion, we agreed to create a values-based organization. The vision statement we drafted that night was to be
India’s most respected company delivering best-of-breed technology solutions and employing best-in-class professionals. The
conversation also laid the foundation for Infosys’s value system: C-LIFE, which stands for Client focus; Leadership by
example; Integrity and transparency; Fairness; and Excellence in everything we do. Our vision was the answer to the
question, What are we trying to achieve collectively? The values answered the query, How will we achieve the vision?