In a recent development regarding the investigations into the bribes-for-jobs scandal, Tata Consultancy Services (TCS) has taken decisive action by terminating the employment of 16 individuals and removing three employees from their resource management roles. Additionally, TCS has barred six vendor entities, along with their owners and affiliates, from engaging in any further business transactions with the company.
TCS issued an official statement clarifying the situation, stating that their investigation has identified 19 individuals involved in the matter. Of these, 16 employees have been separated from the company due to violations of the company’s code of conduct, while three employees have been relieved of their resource management responsibilities.
Furthermore, the statement emphasized that this incident is not a case of fraud perpetrated either against or by the company, and it does not carry any significant financial implications. Instead, the issue revolves around a breach of the company’s code of conduct by certain employees and vendors. Notably, none of TCS’s key managerial personnel have been found to be involved in this situation.
TCS has made it clear that it is committed to enhancing corporate governance and has outlined several measures to ensure such incidents are prevented in the future. These measures include the regular rotation of personnel in the resource management function, an augmentation of analytics related to supplier management, periodic declarations by vendors regarding compliance with the Tata Code of Conduct, and the implementation of vendor management process audits.
This development comes three months after TCS initiated an investigation in response to allegations of staffing firms attempting to influence senior TCS executives involved in recruitment processes by offering bribes to secure business with the company.
TCS CEO K Krithivasan addressed the matter in a post-earnings press conference, confirming the conclusion of the investigation and the appropriate actions taken against those found in violation of the code of conduct. He reiterated that all necessary actions have been taken to address the issue, effectively closing the chapter on this incident.
