India Inc less prone to frauds than Chinese firms: Survey
According to a survey of companies by Economist Intelligence Unit, about half of the respondents in India believe that incidents of corporate fraud has increased in the past three years.
By PTI |
NEW DELHI: While the count of corporate frauds is growing in the country, India Inc can take solace in the fact that it is less vulnerable to activities like patent theft and counterfeiting than those in China and other nations.
According to a survey of companies by Economist Intelligence Unit, about half of the respondents in India believe that incidents of corporate fraud has increased in the past three years.
However, Indian firms have witnessed a lower incidence of Intellectual Property theft and counterfeiting in the last three years in comparison to China, another fast growing Asian economy.
In the past three years, about 14 per cent of firms with operations in the country suffered from IP theft and counterfeiting, whereas China recorded 38 per cent of such incidents. Further, the Indian experience is well below the global average of 19 per cent for similar frauds, the study done for international risk consultancy Kroll Inc said.
It pointed out fraud is perceived as a greater threat in emerging markets than in developed economies. Countries like the US, the UK, Australia, Malaysia and Canada have less than 10 per cent incidence of IP theft and counterfeiting.
According to the report, Indian companies are getting increasingly weary and very much concerned over fraud. While 49 per cent of those surveyed in India see fraud as having increased, about 42 per cent Chinese people see it the same way. Further, in both India and China, 60 per cent see themselves as vulnerable to bribery and corruption whereas the figure is just 10 per cent in Japan.
Globally, the survey concludes that four out of five firms have suffered from some form of corporate fraud.
According to a survey of companies by Economist Intelligence Unit, about half of the respondents in India believe that incidents of corporate fraud has increased in the past three years.
However, Indian firms have witnessed a lower incidence of Intellectual Property theft and counterfeiting in the last three years in comparison to China, another fast growing Asian economy.
In the past three years, about 14 per cent of firms with operations in the country suffered from IP theft and counterfeiting, whereas China recorded 38 per cent of such incidents. Further, the Indian experience is well below the global average of 19 per cent for similar frauds, the study done for international risk consultancy Kroll Inc said.
It pointed out fraud is perceived as a greater threat in emerging markets than in developed economies. Countries like the US, the UK, Australia, Malaysia and Canada have less than 10 per cent incidence of IP theft and counterfeiting.
According to the report, Indian companies are getting increasingly weary and very much concerned over fraud. While 49 per cent of those surveyed in India see fraud as having increased, about 42 per cent Chinese people see it the same way. Further, in both India and China, 60 per cent see themselves as vulnerable to bribery and corruption whereas the figure is just 10 per cent in Japan.
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Globally, the survey concludes that four out of five firms have suffered from some form of corporate fraud.
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