India has seen a spurt of corporate scams and cases of corporate espionage. This has resulted in an urgent need for a strong corporate compliance function. Bribery and corruption continue to pose significant challenges in India. The 2014 Transparency International Corruption Perceptions and Bribe Payers Indices (2011) rank India 85th (out of 174) and 19th (out of 28), respectively, indicating the severity of the issue.
Corporate India is now slowly taking steps in the right direction in principle but still not investing enough in practice. An effective compliance plan would ideally include more than just an increase in budget allocated. It would involve the establishment of leading global practices, policies and procedures. It would also focus on providing appropriate training sessions to sensitise employees across the board about the importance of complying with relevant laws.
Recent trends in India on compliance
Media reports around frauds and scams, coupled with the stigma of being ranked 142nd among 189 countries on the World Bank’s ‘Ease of Doing Business’ index (2014) prompted the government to take serious measures to enhance India’s perception and ranking. The idea was also to inculcate a culture of compliance and mitigate risks related to bribery and corruption.
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