Emphasizing Employee Well-Being and Fair Pay
Renowned entrepreneur and Infosys founder Narayana Murthy has called on businesses to adopt a more humane approach to corporate management. Speaking at TiE Con Mumbai 2025 in a conversation with former TiE Mumbai founding president Harish Mehta, Murthy emphasized the importance of treating employees with dignity and reducing the widening pay gap between the highest and lowest earners. He advocated for a model he termed “compassionate capitalism,” which focuses on sharing corporate success fairly among employees.
Murthy stressed that respect in the workplace is crucial, encouraging business leaders to publicly acknowledge achievements while addressing concerns privately. He believes that India’s progress and poverty reduction will be driven by businesses and entrepreneurs who adopt a fair and ethical approach to capitalism. While he had previously faced criticism for advocating a 70-hour workweek, his latest remarks focused on the need for corporate leaders to ensure a balanced and just work environment.
The Role of Capitalism in India’s Growth
Murthy underscored the importance of moving beyond a socialist mindset and embracing capitalism as a force for economic development. He explained that capitalism, when practiced ethically, creates opportunities for innovation, generates wealth, and increases employment, thereby contributing to national growth. By fostering a culture of responsible entrepreneurship, businesses can help reduce poverty and contribute to public welfare through taxes.
According to Narayana Murthy, entrepreneurs should act as ambassadors for capitalism, ensuring that their actions inspire trust and belief in the system. He urged business leaders to lead by example, stating that merely talking about ethical capitalism is not enough—real change requires concrete action. His vision suggests that responsible capitalism can help bridge economic inequalities while driving sustained growth.
Walking the Talk: Murthy’s Contribution to Nasscom
Murthy’s commitment to ethical business practices was highlighted through an anecdote shared by Harish Mehta. During the early days of Nasscom, when the organization was struggling financially, Narayana Murthy played a crucial role in supporting its survival. At a time when Nasscom was incurring significant losses, member companies were required to contribute financially to keep it afloat. Understanding the industry’s long-term benefits, Murthy devised a unique solution.
He initiated training programs on IBM AS400 computers at Infosys campuses, inviting software engineers from competing companies to participate. The funds generated from these sessions were entirely directed towards Nasscom’s financial needs. This strategic decision demonstrated his belief in industry-wide collaboration and growth over mere competition. His vision of keeping “India first” and supporting industry development highlighted his commitment to ethical leadership.
Murthy’s actions set a precedent for business leaders, showcasing how collaboration and responsibility can drive not just individual success but also industry-wide progress. His philosophy of compassionate capitalism continues to inspire entrepreneurs to create a fair and inclusive corporate environment while fostering national development.
