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Last updated on: January 13, 2009 20:29 IST

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IT major Wipro understands clearly the difference between a bribe and 'facilitating payment' and
is not averse to giving gifts "in the normal course of business" provided that these do not exceed
$50.

"A contribution or entertainment should never be offered under circumstances that might create
the appearance of an impropriety. Some very modest gifts with a value not exceeding $50 or
equivalent currency, appropriate to give in the normal course of business practice may be
acceptable," the company says in its code of business conduct and ethics.

Wipro, banned for four years from doing business with the World Bank for offering improper
benefits to its employees, has questioned the global lender's decision saying it had done nothing
wrong.

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In its code, the company says there is a clear distinction between bribe - a practice of corruptly
giving a thing of value in exchange for gaining advantage in favour of the giver or any other
person - and 'facilitating payment'.

It defines 'facilitating payment' as "payment of money to expedite a routine governmental action

After the World Bank made its decision of 2007 to debar the company for four years, Wipro had
said in a statement that it had offered the staff of the global lender shares under a plan approved
by the authorities.

It is important for the employees to understand the difference between bribe, which it said was a
strict-no, and facilitating payment, the code said, adding that even the latter is discouraged in the
company.
The company's Code of Business Conduct and Ethics, posted on its website, calls for it to
comply with Foreign Corrupt Practices Act, which prohibits corrupt payments for obtaining or
retaining business.

The code also says that "Wipro will only obtain and conduct business legally and ethically. The
quality of our products and the efficiency of our services at the most competitive prices is our
greatest tool in marketing our business."

"We should ensure that third parties do not violate Wipro's policies and should never give, offer,
or authorize the offer, directly or indirectly (proxy bribing), of anything of value (such as money,
goods or service) to any third party including government official to obtain any improper
advantage."

Offerings of items that cost up to $50 are acceptable if they meet the following criteria: "They
are consistent with accepted business practices. They do not violate applicable law. They cannot
be reasonably construed as payment or consideration for influencing or rewarding a particular
decision or action. Their public disclosure would not embarrass Wipro."

Wipro fraud by its own employee amounts to USD 4 mn, half amount recovered

Wipro, India¶s third biggest IT service company has crumbled into $4-mn fraud that has been
caused due to Wipro¶s employee who had been working with it for the past three years. This is
the case of felony which has embarked upon many questions upon the functioning of the
company.

Wipro fraud was discovered in December when the officials got an overdraft transaction thus
divulging into more enquiries. Wipro officially has accepted the case of fraud and has reported
the involvement of one of its employees (name undisclosed) who is said to be working in
controllership division within the finance department. Financial books were kept along with
authorization to the payments were given by this particular cell.

The unnamed official who has been indulged in the Wipro fraud is said to have stolen a
password and transferring Rs 1 lakh to Rs 1.2 crore to his personal

saving account that has been utilized by him in investments, jewellery, purchasing property etc.

Wipro has taken stricter actions to keep a clean chit. Wipro has officially recovered half of the
fraud money but still owes a loss of $2million. Along with this, Wipro has demobilized the
controllership division.

The internal as well as external investigations are going on parallel scale to get better results for
Wipro fraud. A team of investigation experts along with the auditors is making way for stringent
control of finances within the company. The existing audits are being investigated too to avoid
any future loopholes.
Speaking on Wipro fraud, Mr. Suresh C Senapaty, Wipro¶s CFO, has insured more alert in their
monitoring system while hiring people for his company so that the pride he takes in Wipro¶s
work ethics can be implemented too.

It is notable that Wipro already is facing its ban from World Bank and more incidents like these
will making the outsourcing companies to think again while investing in Wipro.


Wipro bids adieu to 300 more 'Non-Performers'

Some had to wait for a long time to get back their documents, after being told about the
company's decision. The employee illustrates, "I had to wait for more than eight hours to get
back my documents, because of the long queue of employees."

Few days back, Wipro had outperformed its larger rivals Infosys and TCS both in terms of profit
and revenue growth, in its Q4 results.

The move by the Bangalore-based company comes in the wake of an announcement made by
Girish Paranjpe, Joint CEO of Wipro's IT business. Paranjpe had said, "For FY09, we probably
have seen five to seven percent of our manpower employed with the IT business being released,
as against two to three percent a year back."

According to Paranjpe, the performance criteria have become tougher now, because of the
slowing economy. Last year, the company had announced, to put four to five percent of its
workforce that is about 3,000 employees, under the performance scanner. Based on their
performance some would be given counseling to help them improvise, while others would be
asked to quit.

The spokesperson said, "Those who don't clear the 'tests', are the ones who are sent off." Pointing
out to similar kinds of measures by other companies, she added, "This type of a move is taken by
many companies these days, due to the economic downturn."

Reader's comments (50)

..they will force you to resign..if you say.. you will not resign then they will say .. we will fire
you with bad remark about performance.. so there is no other way«

and if you resign then they will not give full compensation also «
i.e two months salary as per their own norms.. i got only one month salary..

but this so called non performer got job in 15 days - at peak recession time with 30% hike..