Murthy, one of the highly respected corporate captain''s around the globe, gave this piece of advice to the entrepreneurs assembled at the India Global Innovation Connect 2022 event in the city. He shared a couple of inspirational anecdotes about how safe it is to disclose bad news about the company." />
Tuesday, Mar 28 2023 | Time 10:37 Hrs(IST)
Business Economy

Disclosing bad news is transparency: Infosys Founder Narayana Murthy

Bengaluru, June 3 (UNI) Talking about life lessons as a top-notch corporate captain, Infosys Founder NR Narayana Murthy on Friday said "disclosing bad news (about a company) is transparency, not hiding it."
Murthy, one of the highly respected corporate captain's around the globe, gave this piece of advice to the entrepreneurs assembled at the India Global Innovation Connect 2022 event in the city. He shared a couple of inspirational anecdotes about how safe it is to disclose bad news about the company.
Murthy brought to life one of his toughest decisions to severe business tieup of Infosys with a highly respected top ten corporations of the world which his partners including Nandan Nilekani and Shibulal, opposed, which was bad news.
Disclosure of this bad news did not do great damage to Infosys, instead it benefited the company, Infosys Founder said. He also shared a similar conversation between him and Ex-Infosys CFO TA Mohandas Pai.
"We had kept aside a certain amount of money to start our office in Boston. Those days RBI took its own time. So finally Mohan (TA Mohandas Pai) said why don't we invest in the secondary market. I have tremendous respect for Mohan because he is one of the brightest that I have come across. I said okay. And we lost some money," Murthy said.
"So, there was a discussion on whether to disclose it. I said friend. Disclosure transparency means disclosing bad news. Transparency is not disclosing good news. So I said we have to disclose and we disclosed. We did not suffer," he added.
Sharing yet another experience of seeking benefits out of disclosing bad news, Murthy spoke about discontinuing business with a highly respected company which was among the top ten corporations in the world in 1995.
He said, "It is always best to bring bad news early and proactively. If you don't do that you will not be able to sleep well and there is always an anxiety in other parties' minds because they also have sources to get some access to information. It is not like you are the only one to have access to information, right!"
"So, my view is that always bring bad news early and proactively. Let me give you one example. In 1995, I made a very tough decision. I was the only person who made that decision. There was Mohan. There was Nandan, Kris (Gopalakrishnan), Shibu (Lal) and Phanish (Murthy)," he said.
"Everybody was against it, respectfully declining to continue with a highly respected top ten corporations in the world. I thought it was not there. I thought we wouldn't be fair to our employees. Other customers ... etc etc. But once we made that decision. Nandan (Nilekani) and I went to Mumbai and we held an analyst meet on our own. Nobody expected us. It was totally voluntary," Murthy said.
"We told them that look, we have taken this decision not to continue with this highly respected company. They formed 25 per cent of our revenue. We went public in 1993 and this was 1995 May, and we laid out a plan on how we would bridge that gap and grow fast. Our share price didn't suffer. Because so many people told us at that time that you are the first company in India that brought bad news to the team," he said.
"So, my request to all of you is, it is better to be known as a respected individual than a very smart individual. So even if people say that you're not that smart, it is okay but if people say we can trust you. We can trust this man, I can tell you that it has much bigger value than being the smartest guy. So my request to the wonderful entrepreneurs is to let the bad news take the elevator and let the good news take the stairs.
"When in doubt, disclose, and that principle is very enduring and will not hurt the entrepreneurs. It is like going to the doctor at an early stage. Doctor will find a solution for you. If you hide it, then it will be ... we also have experienced it," Murthy said with a laugh.
More News

Sotac Pharma IPO on March 29 to raise Rs 33 cr

27 Mar 2023 | 8:51 PM

Mumbai, Mar 27 (UNI) Ahmedabad-based Sotac Pharmaceuticals Ltd announced on Monday that it will come out with an initial public offer (IPO) for 30,00,000 shares to raise capital of Rs 33 crore.

see more..

Air India launches non-stop flight from Amritsar to London Gatwick

27 Mar 2023 | 8:32 PM

New Delhi, Mar 27 (UNI) Air India launched its first-ever non-stop flight to London Gatwick from Amritsar on Monday.

see more..
Sensex recovers 126 76  pts

Sensex recovers 126 76 pts

27 Mar 2023 | 6:13 PM

Mumbai, Mar 27 (UNI) Snapping a negative trend of last two sessions, the BSE sensex on Monday rose 126.76
pts to close at 57,653.86 on the strength of Reliance Industries, Sun Pharma and SBI.

see more..

Domestic LPG cylinder refills capped to stop diversion for commercial use, RS told

27 Mar 2023 | 6:05 PM

New Delhi, March 27 (UNI) Public sector oil marketing companies (OMCs) have put a cap of 15 refills of 14.2 kg cylinders in a financial year to curb diversion of domestic LPG cylinders for commercial usages, Minister of State for Petroleum and Natural Gas (MoPNG) Rameswar Teli told Rajya Sabha on Monday.

see more..

Kottayam-Kochi Rubber Market Rates

27 Mar 2023 | 4:43 PM

Kottayam, Mar 27 (UNI) Following were the Rubber Market rates announced by the Rubber Board here today per quintal:
RSS FOUR: 14900
RSS FIVE : 14500
RSS FOUR : 14900
RSS FIVE : 14500
RSS One : 14585
RSS Two : 14440
RSS Three: 14307
RSS Four : 14235
RSS Five : 14127
SMR TWENTY : 10975($133.45)
SIXTY PERCENT LATEX : 9690($117.85)

see more..