Narayana Murthy Advocates ‘Compassionate Capitalism,’ Calls for Fair Pay and Employee Dignity

Infosys founder NR Narayana Murthy has emphasized the need for businesses and entrepreneurs to treat employees with dignity, reduce the wage gap, and embrace a more humane form of capitalism. Speaking at TiE Con Mumbai 2025 in a conversation with former TiE Mumbai founding president Harish Mehta, Murthy stressed that India’s economic progress and poverty alleviation depend on businesses adopting what he called “compassionate capitalism.”

The Need for Fairness in Corporate Culture

Murthy urged companies to uphold employee respect by ensuring fair treatment across all levels. “We must praise people in public and criticize in private, and as far as possible, share the company’s success in a just manner among all employees,” he stated.

He reiterated that capitalism, when practiced responsibly, can drive innovation, create jobs, and contribute to national growth by increasing tax revenues that fund public welfare. However, he cautioned that business leaders must lead by example.

“It is on us to demonstrate that capitalism and entrepreneurship bring real benefits. We have to be evangelists for this cause—not just talk about it, but truly practice it,” he asserted.

A History of Walking the Talk

Mehta recalled an instance from the early days of Nasscom, when the industry body faced significant financial losses. At the time, IT companies were contributing ₹25,000 monthly to sustain the organization, a substantial amount back then.

To support Nasscom, Murthy organized training programs on IBM AS400 computers at Infosys campuses—skills that were in high demand in the IT sector. Remarkably, he invited competing companies to send their best software engineers for training, with all proceeds going toward Nasscom’s survival.

“Imagine training your competitors’ best engineers, who would then compete with you tomorrow,” Mehta remarked. “But Murthy saw the bigger picture—India’s tech industry had to grow. His philosophy of collaboration over competition ultimately strengthened the sector and was later embraced by Nasscom itself.”

Murthy, who previously faced criticism for advocating a 70-hour workweek for young Indians, reaffirmed his belief that India cannot thrive with a socialist mindset alone. Instead, he urged businesses to adopt a balanced approach where wealth creation benefits not just investors but also employees at all levels.