April 21, 2016:A survey report says-over 70% of India Inc feels, at least one form of unethical conduct is justified to meet financial targets even as the perception of bribery and corruption being widespread in the country has gone down over the years.
As per the findings tax advisory firm EY '14th Global Fraud Survey', there is a gradual but positive shift in the perception of bribery and corruption being widespread in the country among 58% respondents in India.
"The government has already undertaken significant steps to augment transparency and crackdown corruption which is reflected in the survey," EY noted.
Suver "70% of those surveyed believe that at least one form of unethical conduct can be justified to meet financial targets".
It also noted that- , “30% of respondents are prepared to book revenues earlier than they should be recognized -- the highest proportion overseas “
While, 44% surveyed treated practices such as, personal gifts or services, entertainment ,cash payments or misrepresentation of financial performance acceptable means to meet business targets.
As per EY, survey was conducted among fifty top executives in the country and overnment-led initiatives, including tax reforms and the Make in India initiative, have made India a global leader for foreign direct investment.
"Despite the initiatives and the progress, respondents who exited or considered exiting India still frequently cited fraud, bribery and corruption, as well as inconsistent or arbitrary enforcement of laws and regulations, as key reasons for their exit," it said
Arpinder Singh said,"Today, the global business environment is clamoring for enhanced transparency at a time of increased geopolitical tensions and heightened volatility in financial markets,"
Arpinder Singh is the EY India partner and national leader fraud investigation and dispute services .
Singh added,"The escalating threats of cyber crime, terrorist financing and, more recently, the revelations on widespread possible misuse of offshore jurisdictions, have increased pressure on Governments to act and companies to identify and mitigate fraud, bribery and corruption issues”
In survey the participants involving CFO, heads of internal audit, company secretary and other shareholders over sectors and corporate.