Indian companies 4th-worst bribe payers, globally: Transparency International
Five of the worst bribe payers across the world are from emerging economies like Russia, China, Mexico, India and Brazil. Global slump: India Inc on crossroads
By PTI |
NEW DELHI: Indian firms are ranked as the fourth-worst bribe payers across the world, with companies based in emerging economies routinely engaging in bribery while doing business abroad, says a report.
According to civil society organisation Transparency International's 2008 Bribe Payers Index (BPI), emerging economic giants show high levels of corporate bribery overseas.
The latest index ranks 22 leading international and regional exporting countries, out of which five of the worst bribe payers across the world are from emerging economies like Russia, which has an average score of 5.9, China has 6.5, Mexico (6.6), India (6.8) and Brazil (7.4).
Meanwhile, Belgium and Canada shared first place in the 2008 index with a score of 8.8 out of a thoroughly clean 10, indicating that Belgian and Canadian firms are seen as least likely to bribe abroad. The Netherlands and Switzerland shared third place on the index, each with a score of 8.7.
The higher the score for a country, the lower the chances that companies from this country would engage in bribery while doing business abroad, and the vice-versa.
"The BPI provides evidence that a number of companies from major exporting countries still use bribery to win business abroad, despite awareness of its damaging impact on corporate reputations and ordinary communities," Transparency International Chair Huguette Labelle said.
The index also shows public works and construction firms to be the most corruption-prone when dealing with the public sector and most likely to exert undue influence on the policies, decisions and practices of governments.
The 2008 BPI is based on the responses of 2,742 senior business executives from companies in 26 developed and developing countries, chosen on the basis of the volume of their imports and inflows of foreign direct investment.
A sectoral analysis shows that firms in public works contracts and construction, real estate and property development, oil and gas, heavy manufacturing and mining are seen to bribe officials most frequently. The cleanest sectors identified in this regard are information technology, fisheries, and banking and finance.
The index further highlights the fact that public works contracts and construction, oil and gas, mining, and real estate and property development are the sectors, whose companies are most prone to using illegal payments to influence the state.
Interestingly, banking and finance segments are seen to perform considerably worse in terms of state capture than in willingness to bribe public officials, suggesting that their firms may exert considerable undue influence on regulators.
The sectors where companies are least likely to exert undue pressure on the public policy process are agriculture, fisheries and light manufacturing.
Transparency International says, "There is little awareness of the OECD Anti-Bribery Convention among senior business executives and governments need to play a key role to ensure that foreign bribery is stopped at the source and by making good on commitments to prevent and prosecute such practices."
"The unfolding financial crisis has shown us just how integrated the world's markets have become. Accountability must be guaranteed across borders, including improved risk management and reach all the way down a company's supply chain," said Transparency International Managing Director Cobus de Swardt.
According to civil society organisation Transparency International's 2008 Bribe Payers Index (BPI), emerging economic giants show high levels of corporate bribery overseas.
The latest index ranks 22 leading international and regional exporting countries, out of which five of the worst bribe payers across the world are from emerging economies like Russia, which has an average score of 5.9, China has 6.5, Mexico (6.6), India (6.8) and Brazil (7.4).
Meanwhile, Belgium and Canada shared first place in the 2008 index with a score of 8.8 out of a thoroughly clean 10, indicating that Belgian and Canadian firms are seen as least likely to bribe abroad. The Netherlands and Switzerland shared third place on the index, each with a score of 8.7.
The higher the score for a country, the lower the chances that companies from this country would engage in bribery while doing business abroad, and the vice-versa.
"The BPI provides evidence that a number of companies from major exporting countries still use bribery to win business abroad, despite awareness of its damaging impact on corporate reputations and ordinary communities," Transparency International Chair Huguette Labelle said.
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The index also shows public works and construction firms to be the most corruption-prone when dealing with the public sector and most likely to exert undue influence on the policies, decisions and practices of governments.
The 2008 BPI is based on the responses of 2,742 senior business executives from companies in 26 developed and developing countries, chosen on the basis of the volume of their imports and inflows of foreign direct investment.
A sectoral analysis shows that firms in public works contracts and construction, real estate and property development, oil and gas, heavy manufacturing and mining are seen to bribe officials most frequently. The cleanest sectors identified in this regard are information technology, fisheries, and banking and finance.
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The index further highlights the fact that public works contracts and construction, oil and gas, mining, and real estate and property development are the sectors, whose companies are most prone to using illegal payments to influence the state.
Interestingly, banking and finance segments are seen to perform considerably worse in terms of state capture than in willingness to bribe public officials, suggesting that their firms may exert considerable undue influence on regulators.
ADVERTISEMENT
The sectors where companies are least likely to exert undue pressure on the public policy process are agriculture, fisheries and light manufacturing.
Transparency International says, "There is little awareness of the OECD Anti-Bribery Convention among senior business executives and governments need to play a key role to ensure that foreign bribery is stopped at the source and by making good on commitments to prevent and prosecute such practices."
"The unfolding financial crisis has shown us just how integrated the world's markets have become. Accountability must be guaranteed across borders, including improved risk management and reach all the way down a company's supply chain," said Transparency International Managing Director Cobus de Swardt.
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