Summary: Infosys co-founder Narayana Murthy, speaking at TiE Con Mumbai 2025, urged Indian businesses and entrepreneurs to adopt “compassionate capitalism.” He emphasized treating employees with dignity, reducing the pay gap between the highest and lowest earners, and ensuring fair profit-sharing. Murthy advised leaders to praise employees publicly and offer criticism privately while promoting ethical business practices. He highlighted how capitalism, when practiced responsibly, can drive innovation, job creation, and poverty reduction. Entrepreneurs, he said, must lead by example to reshape societal perceptions of capitalism. His message reinforces the need for a balanced approach between profit-making and social responsibility in corporate India.
“Narayana Murthy Champions ‘Compassionate Capitalism’: Calls for Fair Wages and Employee Dignity”
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Infosys founder NR Narayana Murthy has called upon Indian businesses and entrepreneurs to adopt “compassionate capitalism,” emphasizing the importance of treating employees with respect and reducing income disparities within organizations. Speaking at TiE Con Mumbai 2025, Murthy highlighted that India’s progress and poverty alleviation hinge on businesses embracing a more empathetic approach to capitalism.
Advocating for Compassionate Capitalism
Murthy underscored the need for a shift from the traditional socialist mindset to a form of capitalism that fosters innovation, wealth creation, job opportunities, and contributes to national development through taxation. He stated, “Capitalism is all about providing opportunity for people to come out with new ideas to create wealth for themselves and their investors; to create jobs for people and thereby reduce poverty; and to contribute to taxes in the country so that a lot of public good work can take place.” businesstoday.in+4financialexpress.com+4timesofindia.indiatimes.com+4
Promoting Fair Treatment and Equity
Emphasizing the significance of employee dignity, Murthy advised leaders to publicly acknowledge their team’s accomplishments and offer constructive feedback privately. He also advocated for a fair distribution of corporate profits, aiming to narrow the pay gap between the highest and lowest earners within organizations. Murthy remarked, “To praise people in public and criticize in private, and to the extent possible, to share the fruit of the corporation in a fair manner amongst all employees of the company.” businesstoday.infinancialexpress.com
Entrepreneurs as Catalysts for Change
Murthy called on entrepreneurs to serve as “evangelists” for ethical capitalism, asserting that their actions would influence public perception of capitalism in a society historically inclined towards socialism. He urged business leaders to lead by example, stating, “It is incumbent on every one of us to conduct ourselves in a way that those sceptics will also say, ‘Yeah, there is something good in this thing called capitalism. There is something good in entrepreneurship.’ And to do that, all of us have to become strong evangelists, and we have to walk the talk. Just saying great things and not doing them will not be sufficient.” m.economictimes.com+3timesofindia.indiatimes.com+3financialexpress.com+3businesstoday.in+3moneycontrol.com+3m.economictimes.com+3
Walking the Talk: A Case Study
Highlighting Murthy’s commitment to the greater good of the industry, Harish Mehta, former TiE Mumbai founding president, shared an anecdote from the early days of Nasscom. Facing financial challenges, Murthy organized training programs on IBM AS400 computers at Infosys campuses, inviting competitors to enhance their skills. The proceeds from these sessions were contributed to Nasscom to help cover its losses, exemplifying Murthy’s dedication to fostering collaboration and industry growth. instagram.com+4financialexpress.com+4moneycontrol.com+4
Narayana Murthy’s advocacy for compassionate capitalism serves as a clarion call for Indian businesses to balance profit motives with empathy and fairness. By treating employees with respect, ensuring equitable profit-sharing, and narrowing income disparities, companies can contribute to a more inclusive and prosperous economy. Entrepreneurs, acting as ethical leaders, have the potential to reshape societal perceptions of capitalism, paving the way for sustainable development and poverty reduction in India.m.economictimes.com+1financialexpress.com+1
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Last Updated on Saturday, March 15, 2025 7:02 pm by Sai Jyothi
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