Corporate governance

Corporate governance is about maximizing shareholder value legally, ethically and

on a sustainable basis. At Infosys, the goal of corporate governance is to ensure
fairness for every stakeholder our customers, investors, vendor-partners, the
community, and the governments of the countries in which we operate. We believe
that sound corporate governance is critical in enhancing and retaining investor trust.
It is a reflection of our culture, our policies, our relationship with stakeholders and our
commitment to values. Accordingly, we always seek to ensure that our performance
is driven by integrity.
Our Board exercises its fiduciary responsibilities in the widest sense of the term. Our
disclosures seek to attain the best practices in international corporate governance.
We also endeavor to enhance long-term shareholder value and respect minority
rights in all our business decisions.
We continue to be a pioneer in benchmarking our corporate governance policies with
the best in the world. Our efforts are widely recognized by investors in India and
abroad. We have been audited for corporate governance by the Investment
Information and Credit Rating Agency ( ICRA) and the Credit Rating Information
Services of India Limited (CRISIL) and have been awarded a rating of Corporate
Governance Rating 1 (CGR 1) and Governance and Value Creation Level 1 (GVC
Level 1) rating respectively.
We are also in compliance with the recommendations of the Narayana Murthy
Committee on Corporate Governance, constituted by the Securities and Exchange
Board of India (SEBI).

Infosys corporate governance philosophy

Corporate governance is an ethically driven business process that is committed to
values aimed at enhancing an organization's wealth generating capacity. This is
ensured by taking ethical business decisions and conducting business with a firm
commitment to values, while meeting stakeholders' expectations. At Infosys, it is
imperative that our company affairs are managed in a fair and transparent manner.
This is vital to gain and retain the trust of our stakeholders.
Our corporate governance framework ensures effective engagement with our
stakeholders and helps us evolve with changing times. The publication of the
Cadbury Report in the U.K. in 1992 was a significant event in modern corporate
governance. The report recommended the arrangement of company boards and
accounting systems to reduce corporate governance risks and failures. The
enactment of the Sarbanes-Oxley Act, 2002, resulted in the senior management
individually certifying the accuracy of their company's financial information. The
Dodd-Frank Wall Street Reform and Consumer Protection Act looks to build a safer,

more stable financial system to set the foundation for sound economic growth and
job safety.
Recently, the Securities and Exchange Board of India (SEBI) sought to amend the
equity listing agreement to bring in additional corporate governance norms for listed
entities. These norms provide for stricter disclosures and protection of investor rights,
including equitable treatment for minority and foreign shareholders.
Many of the amendments are effective from October 1, 2014. The amended rules
require companies to get shareholders' approval for related party transactions,
establish whistleblower mechanisms, elaborate disclosures on pay packages and
have at least one woman director on their boards.
The amended norms are aligned with the provisions of the Companies Act, 2013, and
is aimed to encourage companies to adopt best practices on corporate governance.
We believe that an active, well-informed and independent board is necessary to
ensure the highest standards of corporate governance. It is well-recognized that an
effective Board is a pre-requisite for a strong and effective corporate governance. At
Infosys, the Board of Directors (the Board) is at the core of our corporate
governance practice and oversees how the Management serves and protects the
long-term interests of our stakeholders.
Our corporate governance framework ensures that we make timely disclosures and
share accurate information regarding our financials and performance, as well as the
leadership and governance of the Company.
Our corporate governance philosophy is based on the following principles:

Satisfying the spirit of the law and not just the letter of the law

Going beyond the law in upholding corporate governance standards

Maintaining transparency and a high degree of disclosure levels

Making a clear distinction between personal convenience and corporate

resources

Communicating externally in a truthful manner about how the company is run

internally

Complying with the laws in all the countries in which the company operates

Having a simple and transparent corporate structure driven solely by business

needs

Embracing a trusteeship model in which the management is the trustee of the

shareholders' capital and not the owner

Driving the business on the basis of the belief, 'when in doubt, disclose'

At the core of our corporate governance practice is the Infosys Board, which
oversees how the management serves and protects the long-term interests of all our
stakeholders. The majority of the board, eight out of 14, are independent members.
As active and well informed members of the board, they are fully committed to
ensuring the highest standards of corporate governance. In addition, the independent
directors make up the audit, compensation, investor grievance, nominations, and risk
management committees, bringing their valuable perspective to the board.
As part of our commitment to follow global best practices, we substantially comply
with the Euroshareholders Corporate Governance Guidelines 2000 and the
recommendations of the Conference Board Commission on Public Trusts and Private
Enterprises in the U.S. We also adhere to the United Nations Global Compact
(UNGC) and the Organisation for Economic Co-operation and Development (OECD)
principles.