Photo: Bloomberg

Photo: Bloomberg

Quick Edit | Corporate corruption

Quick Edit | Corporate corruption

The Prime Minister said on Friday the government is seeking to criminalize bribe-giving by companies.

Photo: Bloomberg

There are two reasons for caution. One, official corruption is mostly for personal gain, while company executives may pay bribes to get a job done. Two, there is the issue of where the buck stops: the CEO may be no more responsible for corrupt activities lower down in the organization than a minister with low-level corruption in his ministry.

That said, Indian companies can no longer behave as if they have no skin in the corruption game. Irrespective of whether a law to curb corporate graft is passed, companies need to write whistle-blower protection and tough anti-bribery rules into their corporate governance frameworks.

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