Cognizant: Recovering from a Bribery Scandal in India
(5 pages of text)
Case (Pub Mat)
In February 2019, Cognizant Technology Solutions (Cognizant), an American information technology (IT) outsourcing company, was ordered to pay a total of US$28 million in penalties to the U.S. Securities and Exchange Commission and the US Department of Justice. Certain payments relating to facilities in India were allegedly made improperly and in possible violation of the US Foreign Corrupt Practices Act (FCPA). In April 2019, Brian Humphries took over the role of chief executive officer at Cognizant. What could Humphries and Cognizant do to recover and to prevent future incidents of corruption?
This case is appropriate for use in undergraduate-, graduate-, and executive-level courses in international business, business ethics, and management. After working through the case and assignment questions, students will be able to
- provide nuanced insights into the opportunities and challenges associated with India’s IT industry and the management of its employee base;
- understand the significant complexity and ambiguity related to the laws and ethical standards surrounding corporate practices internationally;
- analyze the complex ethical concerns that arise during international business, including the costs of corruption and the benefits of ethical practices;
- recognize opportunity in crisis and recommend actions beyond recovery strategies; and
- develop a plan for the future based on a contextual understanding of both industry dynamics and the business culture in India.
Information, Media & Telecommunications
India; United States, Large, 2019
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