A blot of one episode is enough to make a company lose its precious capital of reputation. Over the years, Tata Consultancy Services (TCS) has been acclaimed for employee-friendly workplace practices, skill-development programmes, and creating an environment for professional growth.
Now, the IT giant has been reportedly rocked by a bribery scandal. It’s alleged that a senior executive has hired scores of personnel on the condition of bribes.
According to reports, a whistleblower had alleged that a global head of TCS’ resource management group, ES Chakravarthy, has been accepting commissions to recruit people. The report further added that the division head joined the firm in 1997 and had been reporting to the COO Natarajan Ganapathy Subramaniam. Although his email id is active, he has been barred from coming to office.
TCS, meanwhile, has swiftly reacted to the complaint and set up an inquiry panel comprising three executives. The panel includes chief information security officer Ajit Menon, it’s reported.
TCS has also sent Chakravarthy on leave, fired four executives of the recruitment group, and blacklisted three staffing firms. While the scale of the transactions hasn’t surfaced yet, two executives have alleged that the scam involves Rs 100 crores in the form of commissions.
The resource management group called RMG has 3,000 staffers, including approximately 1,400 engineers. The group recruits daily. It’s reported that last year, TCS earned $27.93 billion in revenue and has 6,14,795 employees. TCS prefers hiring through referral programmes. They engage firms that hire contractors.
Given that TCS has robust procedures in recruitment, this episode should serve as an eye-opener for organisations of similar stature.