Operational bribes, third party risks bother Indian companies

Many companies risking their reputations by not implementing internal procedures to prevent use of bribery by employees

Indian companies are concerned about operational bribes and third party risks as well as lags behind their global peers in providing anti-corruption training to their employees, having whistleblowing mechanisms and budget dedicated to anti-corruption initiatives.

A survey conducted by Control Risks, a risk consulting firm, noticed that many companies are risking their reputations by not implementing internal procedures to prevent the use of bribery by employees. Only 40% of global respondents currently have whistleblowing lines and this figure is much lower (24%) for Indian respondents.

The report reveals that Indian companies surveyed, like many of their international counterparts, are unprepared to meet the challenges of adhering to international anti-corruption legislation, not to mention a tightening domestic regulatory framework.

Commenting on the survey’s findings, Toby Latta, CEO of Control Risks in Asia Pacific, said: “Corruption is one of the most significant challenges adversely affecting the Indian economy. Bribery is neither a cost-effective nor a sustainable business strategy. Through this report, we set out to highlight the greatest concerns of the corporate world when assessing corruption and bribery risks.