ANALYSIS
When will corporate India begin to talk about corruption within? When will it begin to address the fraud that business leaders commit against investors, consumers and employees?
Corruption within the government and political system is tackled by a framework of checks and balances. Faulty and undermined it may be, but the framework does expose scams and scandals at regular intervals.
Less regular is news about corporate corruption. Business leaders in India remain surprisingly silent about the corrupt among them. Corporate corruption is of two kinds.
One where business leaders collaborate with rogue government and political leaders to scam the exchequer or get ahead of rivals. This often gets exposed.
The second is where business leaders actively indulge in fraud against their stakeholders. These include the consumers, investors and even employees.
While many would argue that this does not affect society at large, the truth is far scarier. Most companies in India have borrowed from banks and financial institutions. These funds belong to depositors and taxpayers.
So when a company commits a financial fraud it is really stealing the money from investors, depositors or taxpayers. Sometimes from all. Scores of companies have been accused of provident fund frauds. They take money from employees’ salaries but do not deposit it in mandated provident fund. Most get away with it or hush up the matter.
Often the fraud is against consumers. This is the most dispersed category with little or no organized strength.
Corporate India wants to believe that there is corruption everywhere except within itself. It is a rare business leader who discusses corporate corruption openly. Most are part of the millionaire society that has personal and filial links with each other.
As a result, none speaks against the other.
Industry bodies that are shrill about governance, tax and interest rate matters, remain quiet. I can’t recall a conference organized by any domestic Indian industry body that attacked corporate corruption.
There was a strange silence from corporate India when the Satyam scam was exposed. Leading auditors, consultants and management consultants were implicated along with the promoters of Satyam. Few business leaders spoke up against Ramalinga Raju, the CEO and promoter who was indicted.
A similar silence was noted when the recent Ranbaxy case was exposed. Dinesh Thakur, a US based senior executive of Ranbaxy Laboratories, complained against his own company for falsifying drug data and risky manufacturing practices. He won the case against his company and won $48 million under US law that protects whistleblowers.
Notice also the lack of reaction by corporate leaders against the Sahara Group that has been accused by market regulator Securities and Exchange Board of India of stealing money from depositors. Business leaders tend to look away in cases like and refuse to even acknowledge it publicly.
The Indian system has two problems. One is that law does not protect whistleblowers although a new bill is awaiting approval from parliament. Second is that business leaders refuse to look the problem in the eye.
While legislative changes will take their course, it is time that business leaders begin to look within. Captains of industry have to name and shame peers publicly much in the same way they lament corruption in the government.
The author tracks India’s political economy and its engagement with the world.
Delhi: All primary schools closed, classes shifted to online mode due to rising pollution levels
BIG trouble for Anil Ambani, criminal charges against his Rs 14422 crore company over...
Bhool Bhulaiyaa 3 producer calls Singham Again team 'unfair' after the box office win
From Play to Pay, Gaming Is Big Business And A Genuine Professional Prospect
Leasehold vs Freehold: Exploring Options for Expats and Investors in Dubai
Mukesh Ambani's Reliance, Disney complete Rs 70352 crore media merger, to be headed by...
Badshah lands in legal trouble, case registered against rapper for...
GRAP III imposed in Delhi: What is allowed, what is banned amid 'severe' air quality
'Throwing me in deep end': Ricky Ponting takes fresh dig at Gautam Gambhir over Virat Kohli remarks
Revolutionizing Inventory Management in the Cloud Era: Pradeep Kumar’s Strategic Innovations
Delhi: AAP's Mahesh Khichi elected mayor as party defeats BJP in MCD polls
Delhi Air Pollution: GRAP 3 to be imposed in national capital from Nov 15, strict ban on...
WATCH: Inside Rinku Singh's Rs 3.5 crore luxurious house with rooftop bar, private pool
Renowned Yoga Guru Sharath Jois passes away at 53 after suffering heart attack
NASA alert! Giant 'God Of Chaos' asteroid set for close approach to Earth, may trigger astroquakes
This man earned more money than Mukesh Ambani and world's richest man Elon Musk in one day, he is...
UPPSC protest BIG update: RO-ARO exam postponed, PCS prelims to be held in one day
'World's best....': Japan vlogger's reaction to Bengaluru airport goes viral
Sania Mirza named Sports Ambassador of THIS city, not Delhi, Hyderabad, Jaipur
Shloka Mehta turns heads in sleek white gown at Tira store launch, see pics
Amid Abhishek Bachchan and Aishwarya Rai divorce rumours, Jaya Bachchan surprises everyone with...
IND vs SA: Arshdeep Singh goes past Bhuvneshwar Kumar to become Indian pacer with most....
Mukesh Ambani, Isha Ambani’s luxury retail chain opens new store at...
PM Modi to receive Dominica’s highest national award for...
Shraddha Kapoor says people with big foreheads are…
'Busy making...': Kanhaiya Kumar sparks row with remarks on Devendra Fadnavis' wife; BJP hits back
'Full baarati vibes': Vietnamese man's epic 'nagin dance' steals show at Mumbai event
Tilak Varma credits THIS player for his century against South Africa, says 'He gave me...'
UPSC IFS Mains Admit Card 2024 to be released today at upsc.gov.in, check direct link to download
'Be prepared for...': Rupali Ganguly's stepdaughter Esha Verma REACTS to Rs 50 crore defamation case
Saudi, Iran: Cautious dance toward détente?
Anushka Sharma shares glimpse of Children’s Day special dish for daughter Vamika, son Akaay
Jaw-dropping! Man wraps massive green anaconda around his shoulders, internet says...
Donald Trump plans to end Russia-Ukraine war with THIS move, is expected to 'soon' appoint...
As pollution worsens in Delhi with AQI at 'severe' level, experts at COP29 urge India to...
SDM Assault Case: 60 people arrested in Rajasthan's Tonk
Veg thali cost more than non-veg thali in October, here's why
Land drug trafficking patterns in North-Eastern Region
Shillong Teer Result November 14, 2024: Know updates on lucky winning numbers
Mukesh Ambani's SUPERHIT offer for Jio users: Get unlimited validity for 84 days at just Rs...
Delhi air quality dips to 'severe' category as AQI nears dangerous...
Bigg Boss OTT-fame Bhojpuri actress Akshara Singh receives extortion threat
‘All I do is…’: After Arjun Kapoor confirms breakup with Malaika Arora, her cryptic video goes viral