Murthy invokes Gandhi to emphasis on good corporate governance

Invoking Mahatma Gandhi's adage of leadership by example, Infosys co-founder N R Narayana Murthy today said a company would tread an absolute path of quick destruction, if it loses sight of good corporate governance and transparency, among other ethical and moral traits.

"If we lose good corporate governance, if we lose transparency, if we lose fairness; if we lose accountability, let me assure you that it is an absolutely sure path to quick destruction," he told business news channel ET Now here.

Murthy was replying when he was asked about an email countering allegations made by Infosys against him.

Earlier today, Infosys CEO and MD Vishal Sikka had tendered his resignation from the dual post. The company announced his appointment as executive vice-chairman.
 

He had tendered his resignation after a series of tirades launched by the founders, especially Murthy, over fall in corporate governance at Infosys.

Murthy said good corporate governance is the foundation on which a strong company is built.

Invoking Gandhi's principles, Murthy said the best way to inculcate values among youngsters is to put in practice Gandhi's 'leadership by example' adage.

He said value systems never come in the way of companies' growth and profitability.

"No value system will ever come in the way of growth and profitability of a company. The best way to inculcate values in younger people is through what Mahatma Gandhi did and that is leadership by example," Murthy said.

He said Gandhi used to travel 'third-class', eat less and wear very little because he wanted to demonstrate his appreciation of the common man.

"Therefore, in my opinion everybody in the company, whether he is a chairman, CEO or a general manager or janitor, they all have to find a common purpose and that purpose will only be found easily if there is a common value system," he said.

Asked whether value system is lacking in corporates and start-ups today, Murthy said there are companies which have done well and few others have fallen apart, but that is normal.

However, leaders have to quickly realise to ensure that companies, who have gone soft on value systems, are back on track, though it is not an easy job.