Some Indian firms accept widespread bribery, corruption in biz: EY survey

Some of the Indian corporates have acknowledged that bribery and corruption are prevalent in business activities, according to a survey by consultancy firm EY.

As many as 50 corporates from India participated in the survey, of which 20 respondents said there is widespread bribery and corruption in business.

However, the percentage of respondents in India acknowledging existence of these malpractices has come down from 70 per cent in 2012 to 40 per cent in the latest survey report.

The survey was conducted across 55 countries between October 2017 and January 2018, in which 2,550 interviews in the local language were conducted with senior corporate decision makers, EY said.

"40 per cent of India respondents indicated widespread bribery and corruption in business," according to EY's Global Fraud Survey 2018, Integrity in the spotlight The future of compliance.

The companies surveyed in India included seven firms with revenue in the range of $1-5 billion, 18 firms with revenue in the range of $500-999 million, 16 firms in range of $100 to $499 million and 9 firms with less than $99 million.

"There is increasing justification of unethical behaviour at the workplace as well as gaps in integrity. One in five respondents in India said that offering cash payments can be justified, and one in six said bribery is commonly used to win contracts," the report said.

However, 80 per cent of respondents from India admitted that advantage of demonstrating integrity is successful business performance and 70 per cent attributed it to positive customer perception.

Macroeconomic developments, market pressures, new regulations, enforcement and digital disruption have led to a shift in India's risk landscape. Fraud, bribery and corruption continue to escalate, turning exceedingly complex and ingrained within businesses," Arpinder Singh, Partner and Head - India and Emerging Markets, Fraud Investigation & Dispute Services, EY said.

According to the report, 44 per cent of India respondents said that at least one of the practices such as offering cash, entertainment, personal gifts and mis-stating financial performance is acceptable for business survival, 12 per cent stated their company experienced a significant fraud in the last two years and global enforcement agencies and regulators have levied more than $11 billion of financial penalties since 2012.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel