28 Percent Indian Executives OK With Bribery: Study

Mumbai: Corporate India tops the global league when it comes to bribing and financial frauds, with 28 percent of top executives being keen on making cash payments to win new businesses or retain existing clients, says a survey by leading global consultancy Ernst & Young (E&Y).

The top executives are also not bothered about the consequences of future prosecution for their fraudulent acts, as they are under tremendous board pressure to perform, says the survey.

The findings are interesting as they come at a time when India Inc as well as the public have been for long painting the entire political class "corrupt".

"An alarming 28 percent of top executives from corporate India (against a global average of 15 percent, which is up from 9 percent in 2010) polled are willing to make cash payments to win or retain business," the survey says.

The survey findings add that "as much as 16 percent of respondents from the country, against a global average of five percent, feel that it is justified to mis-state financial performance to help their business survive."

Given the extensive media coverage, it is not surprising that fraud, bribery and corruption are seen as significant risks here, with 70 percent of respondents (against global average of 39 percent) opining that bribery and corruption are widespread in the country.

Releasing the survey finding, E&Y India partner and national director for fraud investigation & dispute services, Arpinder Singh said: "Although the country still remains a favoured investment destination, the survey reveals that the market still faces the challenge of compromised ethical behaviour justified by the offenders as survival in a highly competitive and fast growing market.

"As domestic enforcement activity is building strength, increased focus on mitigating frauds, bribery and corruption risk has been matched by growing regulatory activity, enhanced media activism and more severe penalties."