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Indian companies have been perceived as one of
the worst bribe-payers while engaging in business abroad, ranking along
with firms in other BRIC countries - Russia and China - according to
anti-corruption organisation Transparency International 2008 Bribe
Payers Index, released on Tuesday.
India has improved its BPI score of 6.8 out of 10 this year compared to
the last BPI survey in 2006, when it was ranked last with a score of
4.62, it still remains one of the five worst countries in the world, as
bribery by emerging exporters is still on the high side. The lower the
average score, higher the corruption.
BPI provides evidence that a number of companies from major exporting
countries still use bribery to win business abroad, despite awareness
of its damaging impact on corporate reputations and ordinary
communities," said TI Chair Huguette Labelle in a press statement.
and Canada shared first place in the 2008 BPI, with a score of 8.8,
indicating that Belgian and Canadian firms are seen as least likely to
bribe abroad. The Netherlands and Switzerland shared third place on the
index, each with a score of 8.7. On the other end of the spectrum is
Russia, which is ranked last with a score of 5.9, just below China
(6.5), Mexico (6.6) and India (6.8) (see table).
BPI also shows that public works and construction companies are the
most corruption-prone when dealing with the public sector, and most
likely to exert undue influence on the policies, decisions and
practices of governments. In the first of two new sectoral rankings,
companies in public works contracts and construction; real estate and
property development; oil and gas; heavy manufacturing; and mining were
seen to bribe officials most frequently.
|BRIBE PAYERS INDEX (BPI) SURVEY|
Top five 2008
Top five 2006
Worst five 2008
Worst five 2006
|Source: Transparency International|
cleanest sectors were identified as information technology, fisheries,
and banking & finance. While most of the world's wealthiest
countries already subscribe to a ban on foreign bribery, under the
Organization for Economic Co-operation and Development's anti-bribery
convention, there is little awareness of the convention among the
senior business executives interviewed in the Bribe Payers Survey.
International recommends the Indian government to sign the
international anti-corruption conventions, ratify the United Nations'
convention against corruption and also exhorts it to pass laws like the
US Foreign Corrupt Practices Act of 1977.
unfolding financial crisis has shown us just how integrated the world's
markets have become. Accountability must be guaranteed across borders,
include improved risk management and reach all the way down a company's
supply chain," said Cobus de Swardt, managing director, TI.
face a complex challenge, but efforts to improve labour practices, for
instance, by working with intermediaries, suppliers and affiliates,
show that there is no excuse to not extend anti-bribery standards
globally in a similar fashion."
is a ranking of 22 of the world's wealthiest and most
economically-influential countries according to the likelihood of their
firms to bribe abroad. These countries are - Australia, Belgium,
Brazil, Canada, China, France, Germany, Hong Kong, Italy, India, Japan,
Mexico, the Netherlands, Russian Federation, Singapore, South Africa,
Spain, South Korea, Switzerland, Taiwan, the UK and the US.
survey asked two questions: whether the respondents had business
dealings with companies in the list of 22 countries. If so, how often
the companies, having their headquarters outside, pay bribes in their
own country. The index was then composed based on the reply to these
two questions. Around 2,742 executives in 26 countries were part of the
Post Date:12/11/2008 1:19:51 AM Validity:60 Days