Around 58% of Indian respondents believe that bribery and corrupt practices happen widely in the country according to the 14th EY Global Fraud Survey. While the good part is that it has fallen from 67% (2014) and 70% (2012), it is still much higher than the global average of 39%. At the bottom of the heap is Brazil where 90% of the respondents believe that bribery and corrupt practices happen while Finland tops the list at zero.
Despite the marginal improvement in bribery, 70% of India Inc feels that at least one form of unethical conduct can be justified to meet financial targets, while 30% of respondents are prepared to book revenues earlier than they should be recognized, the highest proportion globally. Also, 44% of Indian respondents consider practices such as entertainment, personal gifts or services, cash payments or misrepresentation of financial performance as acceptable means to meet business targets. Though this has fallen substantially from 71% in 2014, it shows a critical lack of training and awareness around these facets.
There is some hope since 80% of the respondents state that prosecuting individual executives will deter future fraud. Arpinder Singh, Partner and National Leader, Fraud Investigation & Dispute Services, EY India reckons that, “India’s focus on maintaining its global perception as an avid business destination requires a thorough follow-through, in terms of adherence to global compliance principles. While the current regime is seeding change through several macro changes in law and regulation, focus needs to be on the granular aspects to make this change a reality.”
The newest rising global risk relates to cybercrime. The survey found that 42% of respondents in the region believed that cybercrime has been discussed by the board in the past year. The India average however is comparatively dismal at 34% respondents considering this a risk, while the global average is 47%. The Global Fraud Survey 2016 was conducted between October 2015 and January 2016. The research was conducted with 2,825 interviews with senior decision-makers in a sample of the largest companies in 62 countries and territories.