We will grease less palms, especially abroad

This is one place we would rather not be. The Transparency International’s Bribe Payers Index ranked India at #19 out of 22 countries. The lower you are ranked, the more likely are your companies to pay bribes when working abroad. We might take some pride in the fact that India debuted on the index this year.

Fraud is a major problem in India Source: KPMG Fraud Survey 2008 in India

However, by getting ranked at #19, we surely did not do ourselves any favours, and it was very bad advertising for Indian businesses. Now, pardon us for overdoing the C.K. Prahalad bit, but his lament must be quoted here.

“Corruption has become systemic in India and is not limited to individual corruption, like in China,” he said, adding: “Corrupt societies do not develop their human resources and the human development index is related closely to the development index of all economies.” If one believes him, then surely there is a lot at stake here. Bribing abroad is a bad crime and, in some countries, you will be put straightway behind bars.

What’s more, when times are tough—as they are now—it is easy to fall back on bribes. When orders are difficult to come by, greasing a few palms could become a compelling option. However, it will send all the wrong messages to the business communities globally. On the other hand, if we can show that corruption levels in India are decreasing, it would mean that the hidden costs of operating in India are going down. That will be good for the country as well as for business. In 2008, PricewaterhouseCoopers, Ernst & Young and KPMG have strengthened their services on covering fraud. Corporate India is now facing a battle on two fronts against corrupt practices. The problem is not just that of not bribing government officers, but an equally bigger battle is being waged to prevent employees stealing from the company. Surely, the internal battle can be won only when there is more than lip service paid to the external war on corruption.

Hall of infamy India debuted in Transparency International’s Bribery Index at #19 out of 22 countries While the first-time inclusion recognises India’s global clout, the ranking helps nobody’s cause Businessmen from the lower-ranked countries are more likely to pay bribes when operating abroad India is followed by Mexico, China and Russia