Corporates taking innovative steps to reduce corruption: Report

Corporates taking innovative steps to reduce corruption: Report New Delhi: Big corporates such as GAIL, Tata Steel and Infosys are adopting innovative measures to curb corruption and improve corporate governance, says a report.

The report -- Raising The Bar Through Collective Action -- by Global Compact Networks India (GCNI) highlights the importance of collective action from various stakeholders (private, government, civil society) in reducing corruption.

The report has presented nine case studies, including that of GAIL, Tata Steel and Infosys, which took innovative steps to mitigate corruption and improve corporate governance in their firms.

For instance, GAIL has made its entire billing process more transparent and user friendly, while Neyveli Lignite has implemented e-procurement system.

Tata Steel's code of conduct includes rules pertaining to financial reporting, gifts, donations and interaction with government agencies while, Tata Chemicals has systematically implemented 'Gift and Whistle-blower' policies.

The report also includes a case study of public-private joint venture 'mjunction services ltd', a JV of Steel Authority of India Ltd (SAIL) and Tata Steel which would eliminate black marketing, cartels and intermediaries.

"Creating a climate conducive to such disclosure and enabling companies to share such experiences would undoubtedly assist the creation and growth of a corruption-free environment," GCNI Chair Administration Committee A K Balyan said.

Balyan further said industry associations like Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industries (CII) should cut the tentacles of corrupt practices in Indian business environment.

According to a Global Financial Integrity report, India lost a total of USD 462 billion in illegal capital flows between 1948-2008.