"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.