is an age old phenomenonnand
can be discovered all over. It resembles
a disease in the life of individuals, which has not turned out to be uncontrollable
and sustained overnight, but is course of time. Corruption means demolition or
harming the community or country. A corrupt community is characterized by
dishonesty and lack of fear or regard for the law. It is the abuse of open
power for personal advantage. Corruption comes under various structures like
fraud, embezzlement, extortion, briberyy, misappropriations of other’s goods, nepotism (giving
advantage to relatives for positions and contracts) cronyism and influence
has been explained in various ways, but all are imperfect in some manner. A few
yearss ago, the
question of definition absorbedd
a large proportion of the time spent on discussion of corruption at meetings and
seminars. Since, it is hard to describe an elephant, but anyone can recognize
it when one sees it. Sadly, the conduct is usually not easy to observe directly
because, corruption does not take place in wide sunshine.
Corruption in India
is basic in India. India is at number 79 out of 176 nations in Transparency
International’s 2016 CPI. It has played role of a widespread aspect of Indian
Politics and Bureaucracy.
servants, Politicians and law authorities frequently flourish remarkable discretionary
power and significant abuses have been reported. Some prominent inducements in past
years have exhibited that there is law to tackle corruption, although
enforcement is usually not solid and reactions differ from State to State.
corruption is regularly cited as an obstacle to the effective growth of the
private division. There is an absence of straightforwardness in Procurement
practices and are joined with an eminent bureaucratic burden. As per the business
community, rules are often changed with no discussion or transmission and their
implementation can be erratic and non-straightforward.
payments also called as “speed money” are normal exercise in India for acquiring
permits, licences, endorsements, sanctions, framework and facilities from
government divisions and agencies. In some occasions, businesses use outsiders in
order to keep their companies away from getting exposed to direct participation
in negotiating bribes with government officials.
business environment causes risks which need management that is proactive in
the form of systematic due diligence reviews. The growth of risk administration
policies are required to successfully navigate through these problems and
capture the major opportunities in the Indian market.
memorandum covers some of the main risks regularly faced when doing business in
India, gives understanding from companies working in the market to assist new
market entrants and outlines the principal anti-bribery and anti-corruption
initiatives managed by the Indian Government.
Indian Business Culture
India is one of the most diverse nations in
the world and therefore one has to be very cautious while generalizing. Try to examine
every client carefully before entering into any discussions. Is it global corporation
with western business methodology or a family-run, traditional business?
Inter-personal relationships have a great
value in India. Do not try to rush things along too rapidly in the initial stages
– developing relationships take time.
Many meetings will start with fairly
lengthy 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 role
in decisions in India. In general, Indians take huge risks with someone whose
intentions they trust. Hence, ones’ reliability and credibility are critical in
negotiating a contract.
Level of English language is very high in
India in business, and some other (non-Indian) languages might also be spoken.
Do not be shocked if people seem ready to
agree to many things – it is hard for Indians to show direct dissent. People
will be inclined to tell you what they think you want to hear. If an Indian
decision-maker says that they want to “discuss the plan with colleagues” or “we
can consider this later” – it may mean no.
Always look for comprehensive written
clarification of any agreements concluded.
Contracts should be viewed as a beginning
point instead of fixed.
Meetings can seem very casual and it is feasible
for some meetings to be organized by one individual at the same time and in the
same room. Try not to get annoyed by this casual approach.
Time is justly fluid. Be ready for meetings
to 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 and
should not be taken as attempted bribery. Gifts should be wrapped and not unwrapped
in front of the giver.
Both community and business are intensely
hierarchical. The boss is undoubtedly the boss and is anticipated to ‘play the role.’
Most decisions are made by the top management
and it can, therefore, be a waste of effort and funds to spend too much time
negotiating at the middle levels of an organisation if top management has not
yet given the approval.
Women with position of authority will be
respected in business situations. Individuals display respect to the
hierarchical level instead of getting affected by any gender matters.
Try to be sensitive to community religious
customs. Don’t offer beef to a Hindu or alcohol to a Muslim. Before going to
India 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