Indian companies are most concerned about operational bribes and third-party risks, and lag behind their global peers in providing anti-corruption training to their employees, having whistleblowing mechanisms and budget dedicated to anti-corruption initiatives.
This is the outcome of a survey conducted by Control Risks, a global risk consulting firm, and the Economist Intelligence Unit (EIU), canvassing general counsels and compliance heads of 316 companies across the globe.
The survey said the top “two greatest concerns” for Indian companies are demands for operational bribes (76 per cent) and risks associated with third parties (69 per cent).
Indian companies are much more concerned regarding these risks than their international counterparts, the global averages for these two risks are 58 per cent and 52 per cent respectively.
“Indian companies are less concerned with ‘bribes to secure business contracts’: Only 22 per cent cite this as their ‘greatest concern’ as compared to 35 per cent of the US, and 29 per cent of global respondents.
As much as 62 per cent do not have a formal policy statement forbidding bribes to secure business as compared to 23 per cent of the US, and 35 per cent of global companies.
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.”