An anonymous group calling itself, "ethical employees" has complained to the board of Infosys and the US Securities and Exchange Commission (SEC) alleging that the company is taking unethical steps to boost short term revenue and profits. Copies of letters sent by the group to both the board of Infosys and the SEC were shared with ET. In the letter the group alleges that CEO Salil Parekh is bypassing the reviews and approvals for large deals, he (Parekh) directs them to make wrong assumptions to show margin. The letter added that the CEO and CFO Niranjan Roy were pressuring the fiance team to show more profits in their treasury management by taking risks and making changes to policies. They further explained that CFO has not allowed them to present large deal issues in board presentation. Similarly they ask them to make key disclosure on 20F and annual report and to share only good and incomplete information with investors and analysts. This is a regulatory issue. The letter further stated that the large contracts such as Verizon, Intel, JVS in Japan, ABN AMRO acquisition, revenue recognition matters are not as per accounting standards. Similarly, the letter added that they have mails and voice records and they are ready to share it during investigation. The founder company should properly investigate this and take necessary action against culprit. They should analyze the annual report properly and find the mistake. They can form a audit committee to investigate.
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DeleteIs whistle blowing good for an organization Or bad?
ReplyDeleteyes, whistle blowing is good for an organization because they raise voice against wrong practices in an organization
DeleteHow the company has solved this problems?
ReplyDeleteThe company has presented their annual report and financial statements in front of audit team to solve this problem.
DeleteIt's not that much informative which it should have ,might be you have gone far away from your relevant topic .
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DeleteWell explained with ethical and unethical HR,Finance and marketing keep it up try explain with easy word keep it up
ReplyDeleteWho is whistle blower?
ReplyDeleteWhistle blower can be any employee of the company who informs on someone engaged in illegal activities.
DeleteHow would you solve the problem if you were the owner of the company?
ReplyDeleteIf I were the owner of the company I would have done proper investigation and would have fired the employees immediately who are involved in this type of activity.
DeleteHave they punished the offenders?
ReplyDeleteNo, they have not punished them because they have not found any evidence against them.
DeleteHave they found any evidence against offenders?
ReplyDeleteNo they have not found any evidence against them.
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ReplyDeleteThank you
DeleteUr content is good but u add more about infosys
ReplyDeleteWhat effects are seen on market of Infosys after this event?
ReplyDeleteIts share value was decreased around 16% after this incident.
DeleteSuch an informative content
ReplyDeleteThank you
DeleteWhat do you think ..is whistle blower is important in company?
ReplyDeleteI think that whistle blower is important in business because it has vital role in protecting a company's customers and in directly protecting your organisation through combating fraud and misconduct.
DeleteHow does whistle blowing effect to the organization???
ReplyDeleteWhistle blowing can have adverse effects on a company if the employees believe that management is not held to the same standard. It can result in employees quitting the company.
DeleteDoes Whistle blowing is good or bad for organization? And is there any law made for whistle blowing in india?
ReplyDeleteWhistle blowing is good for an organization, because it has vital role in protecting a company's customers and in directly protecting your organisation through combating fraud and misconduct. Yes, there is an whistle blowing protection act in India.
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