Infosys CEO: Financial transparency a must
An abundance of transparency can win back business confidence, according to Infosys CEO Kris Gopalakrishnan. He adds that openness and transparency are the best antidotes for uncertainty, in an article published in BusinessWeek.com (February 27, 2009).
Kris says that companies must be proactive in disclosures rather than just comply with regulation. They must prioritize openness to an extent whereby risk is visible to the management and quantitative estimates of risk can reveal hidden risk.
Kris discusses Infosys' policy of being as transparent as possible, even going beyond the requirements of legislation. In 1999, Infosys became the first company on Nasdaq to publish its balance sheet and income statement according to the generally accepted accounting principles of eight countries. He believes that companies that embrace transparency will gain from a lower cost of capital, attract world-class talent and establish better client relationships.
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Published with permission from BusinessWeek