Amid rising financial mismanagement and malpractices in Indian corporate world, Infosys founder NR Narayana Murthy on Tuesday said bad corporate governance is a genuine worry for the Indian companies.
Speaking at LevelNXT event, Murthy said, "We must all realise that corporate governance is all about maximising shareholder value while ensuring fairness, transparency and accountability to every one of the stakeholders - whether it is customers or employees or investors or vendor partners or the government of the land and the society."
Calling companies to follow corporate governance principles from the beginning, he said, "If these entrepreneurs conducted themselves with an admirable level of good governance, then customers will like them, there will be repeat business, good employees will join them, good investors will invest more and more, the government will look at them with sympathy and most importantly, if they earn the goodwill of the society, then every one of these constituents will definitely be kind to them."
Talking on loss-making IPOs of startup in the market, Murthy said he don't understand the logic behind it, "Our view was that we would go public in 10 years. We founded the company in 1981 and we wanted to go public in 1991 and finally, we went public in 1993. However, our view was very clear. We have to have a very clear five-year plan where the revenue will grow at better than average industry growth rates, where our profitability will be better than the average industry profitability rate and that is the time for us to go public."