Corrupt practices running deep in many Indian firms: Report

MUMBAI: Corrupt practices of various kinds may run deep in many companies in India, but there are a handful of corporations that are fighting it. The Indian arm of the United Nations body Global Compact has recently published a report, entitled Raising the Bar Through Collective Action, that talks about how a group of big-size companies are taking steps to mitigate corruption and improve corporate governance standards.

By presenting nine case studies, of both public and private firms, the report relates how companies like the Gas Authority of India (GAIL), Tata Chemicals, Tata Steels and Infosys, among others, are taking steps to eliminate corrupt practices from their operations. This has, the report says, led to rich financial rewards in terms of savings and increased clientele.

GAIL, for instance, has made its billing process more transparent and user-friendly. Tata Chemicals has implemented 'gift and whistleblower' policies to set down clear business ethics. A joint venture between the Steel Authority of India and Tata Steel transformed the manner in which secondary steel (scrap and defective steel) was being sold in the country.

""Creating a climate conducive to such disclosure and enabling companies to share such experiences would undoubtedly assist the creation and growth of a corruption-free environment,"" says AK Balyan, chair (administration committee) of the Global Compact Network India. Balyan, who is also CEO of the public-sector Petronet LNG Limited, adds that industry associations like CII and FICCI need to play a bigger role in the fight against corruption.

According to a Global Financial Integrity report, India has lost a total of $462 billion in illegal capital flows between 1948 and 2008.