Most Indian executives have paid bribes, stricter laws required to curb corruption: EY survey

By Sachin Dave

MUMBAI: Is paying bribes still a way of doing business in India? The short answer to that is yes, according to a new survey by Ernst & Young’s fraud investigation & dispute services.

The report says that 95 per cent of the respondents are uncomfortable paying the bribe. This also means that least 95 per cent of the participants have at some point of time paid bribes to get their work done in their work of operation.

An overwhelming majority—about 59 per cent-- of the respondents consider "bribery to be a necessity to conduct business in India” the survey says. The only silver lining is that 87 per cent of the respondents felt that they would blow the whistle if they came across a fraud. “This marks a huge leap in the possibility to unearth fraud and corruption risks, it also brings challenges around malicious or frivolous complaints to the table, the report says.

The survey was conducted on the professionals working in the Indian companies at different levels. "Given the intense media scrutiny and regulatory changes, there is a heightened sense of responsibility across the board. This has percolated through the organizational structure and ensured that employees are wary of the repercussions, if they cross a line. This renewed effort augments the prospect of a better and more compliant business culture," said Arpinder Singh, partner and national leader, fraud investigation & dispute services.

However, one thing which all the respondents agreed is that the laws are not sufficient to tackle the problem of corruption. Around 94 per cent of the total respondents said that the greater reforms and stricter implementation of the laws was required to curb or at least reduce the corruption.

"The Companies Act 2013 has brought in an era of change however its success lies in the actual implementation and not just a tick-in-the-box approach. With more anti-graft bills in the pipeline, India Inc. is still awaiting further reforms to build a principled future," the report goes on to mention.