New Delhi: Companies in India are not fully aware of anti-corruption regulations and a lack of anti-graft programme has a negative impact on cost of doing business in the country, a business survey said Tuesday.
Released jointly by Alliance for Integrity (AfIn) and industry body CII, the survey said: "...Loss of a contract to a corrupt competitor impacts the costs of doing business. 84 percent of respondents think that a lack of anti-corruption programme has a negative impact on cost of doing business.
"69 percent of respondents think that companies are not sufficiently aware of anti-corruption regulation in India."
'Corruption In India' survey finds that reduction in corruption is a big challenge mainly due to lack of sanctions.
It said: "64 percent of the respondents think that the lack of a clear, visible and accessible anti-corruption policy is one of the main challenges of reducing corruption.
"...53 percent of respondents of companies headquartered in India think that lack of sanctions for corrupt suppliers is among the main challenges of reducing corruption in the supply chain, 83 percent of respondents from foreign companies operating in India think so."
Lack of law enforcement and reliable processes while dealing with government are the main external challenges faced by companies to reduce corruption.
A company's investment in anti-corruption programmes should receive recognition, however employees should not be rewarded for not engaging in corruption, the survey said.
About 81 percent of respondents said an anti-corruption programme would constitute a competitive advantage and 77 percent said government is among the most important stakeholders to promote anti-corruption compliance in India.
"Companies have to make sure that they have sufficient internal anti-corruption controls in place to reduce legal, commercial and reputational risks," it added.
The survey was conducted between September and October 2014 among senior management with experience in anti- corruption compliance of companies operating in India.
AfIn is funded by German Federal Ministry for Economic Cooperation and Development (BMZ).
The implementing agencies are Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), Federation of German Industries (BDI) and German Global Compact Network (DGCN).
