Corruptionis an age old phenomenonnandcan be discovered all over. It resemblesa disease in the life of individuals, which has not turned out to be uncontrollableand sustained overnight, but is course of time. Corruption means demolition orharming the community or country. A corrupt community is characterized bydishonesty and lack of fear or regard for the law.
It is the abuse of openpower for personal advantage. Corruption comes under various structures likefraud, embezzlement, extortion, briberyy, misappropriations of other’s goods, nepotism (givingadvantage to relatives for positions and contracts) cronyism and influencepending. Corruptionhas been explained in various ways, but all are imperfect in some manner. A fewyearss ago, thequestion of definition absorbedda large proportion of the time spent on discussion of corruption at meetings andseminars.
Since, it is hard to describe an elephant, but anyone can recognizeit when one sees it. Sadly, the conduct is usually not easy to observe directlybecause, corruption does not take place in wide sunshine. Corruption in IndiaCorruptionis basic in India. India is at number 79 out of 176 nations in TransparencyInternational’s 2016 CPI. It has played role of a widespread aspect of IndianPolitics and Bureaucracy.Civilservants, Politicians and law authorities frequently flourish remarkable discretionarypower and significant abuses have been reported. Some prominent inducements in pastyears have exhibited that there is law to tackle corruption, althoughenforcement is usually not solid and reactions differ from State to State.
In India,corruption is regularly cited as an obstacle to the effective growth of theprivate division. There is an absence of straightforwardness in Procurementpractices and are joined with an eminent bureaucratic burden. As per the businesscommunity, rules are often changed with no discussion or transmission and theirimplementation can be erratic and non-straightforward.Facilitationpayments also called as “speed money” are normal exercise in India for acquiringpermits, licences, endorsements, sanctions, framework and facilities fromgovernment divisions and agencies. In some occasions, businesses use outsiders inorder to keep their companies away from getting exposed to direct participationin negotiating bribes with government officials.Thisbusiness environment causes risks which need management that is proactive inthe form of systematic due diligence reviews. The growth of risk administrationpolicies are required to successfully navigate through these problems andcapture the major opportunities in the Indian market.Thismemorandum covers some of the main risks regularly faced when doing business inIndia, gives understanding from companies working in the market to assist newmarket entrants and outlines the principal anti-bribery and anti-corruptioninitiatives managed by the Indian Government.
Indian Business Culture· India is one of the most diverse nations inthe world and therefore one has to be very cautious while generalizing. Try to examineevery client carefully before entering into any discussions. Is it global corporationwith western business methodology or a family-run, traditional business?· Inter-personal relationships have a greatvalue in India. Do not try to rush things along too rapidly in the initial stages- developing relationships take time.
· Many meetings will start with fairlylengthy small conversations. Take the time to get involved in this procedure-it is very vital to the progress of a firm, long-term relationships.· Connections and emotions play a huge rolein decisions in India. In general, Indians take huge risks with someone whoseintentions they trust.
Hence, ones’ reliability and credibility are critical innegotiating a contract.· Level of English language is very high inIndia in business, and some other (non-Indian) languages might also be spoken.· Do not be shocked if people seem ready toagree to many things – it is hard for Indians to show direct dissent. Peoplewill be inclined to tell you what they think you want to hear. If an Indiandecision-maker says that they want to “discuss the plan with colleagues” or “wecan consider this later” – it may mean no.· Always look for comprehensive writtenclarification of any agreements concluded.· Contracts should be viewed as a beginningpoint instead of fixed.
· Meetings can seem very casual and it is feasiblefor some meetings to be organized by one individual at the same time and in thesame room. Try not to get annoyed by this casual approach.· Time is justly fluid. Be ready for meetingsto begin and end late and for interruptions to happen on a regular basis.· Small gifts are usually given and received- this is often considered as a part of the relationship building process andshould not be taken as attempted bribery. Gifts should be wrapped and not unwrappedin front of the giver.· Both community and business are intenselyhierarchical. The boss is undoubtedly the boss and is anticipated to ‘play the role.
‘· Most decisions are made by the top managementand it can, therefore, be a waste of effort and funds to spend too much timenegotiating at the middle levels of an organisation if top management has notyet given the approval.· Women with position of authority will berespected in business situations. Individuals display respect to thehierarchical level instead of getting affected by any gender matters.
· Try to be sensitive to community religiouscustoms. Don’t offer beef to a Hindu or alcohol to a Muslim. Before going toIndia on business know the calendar for public holidays, local festivals, etc.- there are many of them.· Cricket can be a good discussion starter –study up on it