Reference Text
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Economic
Crime
Survey
2016,
for
instance,
says
94
per
cent
of
the
Indian
respondents
stated
that
their
organisations
had
a
clear
code
of
conduct,
yet
only
15
per
cent
indicated
that
their
leaders
walk
the
talk.
About
24
per
cent
mentioned
communication
and
training
on
ethical
behaviour
was
unclear.
Frauds
are
committed
by
executives
at
different
levels
within
a
company,
but
typically
by
those
at
junior
to
middle
management
level,
according
to
these
studies.
These
include
misappropriation
of
assets,
cybercrimes,
and
procurement
frauds,
besides
bribery
and
corruption.
Sometimes,
the
top
management
is
involved,
as
evinced
by
the
growing
list
of
'wilful
defaulters'.
The
lack
of
a
strong
whistleblower
law,
as
well
as
the
absence
of
an
internal
culture
of
encouraging
disclosure,
has
made
matters
worse.
Many
instances
of
fraud,
bribery
and
corruption
do
not
get
reported
for
the
fear
of
retaliation
the
PwC
study
attributes
that
to
19
per
cent
of
the
respondents.
In
other
instances,
it
is
the
loyalty
factor
—
the
EY
study
found
30
per
cent
of
respondents
in
India
cited
loyalty
to
the
company
and
28
per
cent
said
loyalty
to
their
colleagues
as
reason
for
not
reporting.
Having
an
institutional
framework
to
deal
with
such
issues
is
necessary,
but
it
is
equally
important
to
empower
it.
There
are
limitations
to
what
a
compliance
officer
can
achieve
if
information
of
offences
does
not
flow
to
him
or
if
the
management
or
deviant
employee's
supervisor
is
not
supportive
of
his
efforts
or
action
recommended.
Ethical
behaviour
can
become
pervasive
within
an
organisation
only
if
it
has
a
zero
tolerance
attitude
towards
bribery,
corruption
and
other
economic
offences,
irrespective
of
how
many
laws
the
government
puts
in
place.
That
will
happen
when
the
top
management
is
seen
to
be
ethical
in
its
dealings
and
regularly
reports
deviations
and
action
taken
to
all
the
stakeholders.
While
India
Inc
is
vocal
on
India's
abysmal
ease
of
doing
business
rankings,
it
needs
to
realise
that
creating
an
ethical
and
transparent
business
culture
is
as
much
part
of
the
process
to
improve
it
as
reducing
red
tape.
Economic
Crime
Survey
2016,
for
instance,
says
94
per
cent
of
the
Indian
respondents
stated
that
their
organisations
had
a
clear
code
of
conduct,
yet
only
15
per
cent
indicated
that
their
leaders
walk
the
talk.
About
24
per
cent
mentioned
communication
and
training
on
ethical
behaviour
was
unclear.
Frauds
are
committed
by
executives
at
different
levels
within
a
company,
but
typically
by
those
at
junior
to
middle
management
level,
according
to
these
studies.
These
include
misappropriation
of
assets,
cybercrimes,
and
procurement
frauds,
besides
bribery
and
corruption.
Sometimes,
the
top
management
is
involved,
as
evinced
by
the
growing
list
of
'wilful
defaulters'.
The
lack