| www.infosys.com |
|
| Share Price (3/15/07): | $51.84 |
| OVERVIEW: | |
| Market Value (3/15/07): | $28.9 BIL |
| Revenue (2006): | $2.1 BIL |
| Employees: | 69,432 |
| Return on Equity 2006: | 36.0% |
| HIP PRACTICES: | |
| Vision: | "People are the expertise, innovation, entrepreneurship and managerial skills of the enterprise." Vision for higher-skilled workforce leading to deeply integrated support in schools across India. |
| Metrics: | Calculates value and increase of "human capital" -- based on earnings and discount rates. Adapts balance-sheet in appendix of annual report to value human capital and brand value alongside traditional "hard" assets. |
| Financials: | Strong relationship link between employee value and profit, but limited connection seen to earth and equality measures as source of profit. |
| Accountability: | World-class transparency (175-page annual report) listing risks, processes and measures -- including environmental, health and safety updates. |
| Decision-Making: | Employee performance review does not mandate or require impacts, only traditional business measures. |
| HIP OUTCOMES: | |
| Health: |
Lowest voluntary turnover (13%) in the outsourcing industry. 40% of new employees in 2006 joined company's health club. One-sixth of staff take health-quizzes and crosswords; 14% took on-site health, eye and dental checkups; nutrition program serves 1000 staff. |
| Wealth: |
Estimates "value of human resources" inside company at US $10.4 Bil, or about US$200,000 per employee -- and reports yearly in annual report. Calculates an "education index" of current employees, currently averaging "tertiary education" achievement for nearly all staff. Claim that only 1 in 4 students in India is "recruit-able" -- invest heavily in computing and skill advancement in education system to prepare for post-graduation employment |
| Earth: |
30% of campuses dedicated to landscaping to create beneficial GHG environs. Energy usage (+34%) and water usage (+42%) grew slower than employee growth rate (+44%). |
| Equality: |
Employee base is 25% women; no women executives; only one women on Board. 87% of workforce age 30 and under; only 1 employee over age 60. Target "enablement" of cross-caste opportunities. |
| WHAT'S NEXT: | |
| Practices: | Building more impact metrics and formalizing "human capital" quantification into management systems (reviews, promotions) could set new standard globally. |
| Outcomes: | Higher attention to environment and equality performance could catapult firm to tremendous advantage since India's population is 4-x more than US and 3-x more than Eurozone. |
| OTHER RATINGS: | |
| KLD: Companies rated from negative (0) to positive (6) in seven areas. | Currently not rated. |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Not yet rated. |
| RESOURCES: | |
| Sustainability or CSR Report: | Corporate Social Responsibility |
| Annual Report: | 2005 - 2006 Annual Report |
--R. Paul Herman
