MEASURES TO REDUCE CORRUPTION

PRSENTED BY
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ANGEL KRISHNA SANA SAHANA POOJA GIRISH

INDIA AN OVERVIEW ON CORRUPTION

India corruption study conducted by TII Report by bribery demands conducted by Trace international

Corruption perspective

Its not limited to government sector There are both side in corruption demand side and supply side

Specific Corruption Risk in Private Sector

For the larger contracts : Bidding cartels where there is
Agreement on prices Agreement who enters lowest bid Agreement to rotate bid of winning company Compensation for bidding costs etc etc Nearly always for a public sector agency, if fraud is well organized, its difficult for the procurement agency to detect.

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Why deal with private sector

Corruption in the private sector affects public interest. It is the public that suffers in the end In order to attract investment, it is important to ensure that business cost is low ; and corruption whether in private or public sector, increases business costs.

Types of corruption in private sector

Cases involving contracts or procurements of services or supplies Cases involving corrupt offenders who supervise contractors or suppliers.

There are those who are corrupt, and have access to sensitive data which they divulge to unauthorized persons in return for some award

Contd…

Then there are those who are in a position of authority such as CEO or General Manager, who take bribe and grant approval for various matters in favor of bribe givers In some cases corruption is mixed with other offences.

Private vs Public Sectors

Policies and procedures in private sector are comparatively less comprehensive and detailed than the public sector Perception that offences committed in public sector are more serious than the ones in private sector Enforcement agencies for public sector more mature Private sector and public sector are intertwined because private sector provides goods and services to public sector

Types of Corruption in India

Recovery Agents: Perturbed over the way certain banks went overboard to provide advances and then used the services of “recovery agents” to recover the debts, the country’s banking regulatory Reserve Bank of India (RBI) came up with the guidelines for Recovery Agents.
Stock Markets Debts: The country has witnessed various stock market frauds by brokers in collusion with corporate to cheat investors and hoodwink regulator Cartilisation: Scuttling competition is another kind of malpractice in which corporate indulge in their pursuit to maximise profits

Types of corruption

Investors Trading: The other corporate fraud, which prevails not only in India but also elsewhere in the world, is insider trading

Technical Education :In order to prevent exploitation of students

by technical institutes, the regulator All India Council for Technical Education (AICTE) came out with a public notice asking institutes not to forfeit fee if a student decides to leave the institute before beginning of the course.

Government check on Corruption

The Indian Government and its regulatory bodies during the course of last year have introduced various legislations and regulations having a direct and indirect bearing on corruption, corporate frauds and questionable practices being followed by the private sector companies. Some of the important ones are as follows

Consent Orders Competition Act

The social impact
SOCIETY DISINTEGRATES

Causes much hurt to minorities, women, and the poor, increasing poverty

poor cannot afford bribes; ‘relief’ diverted

Causes people to lose trust in each other
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Leads to anger, frustration, conflict

in the workplace, in families and in government, politics, democracy

DAMAGE TO SECURITY
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CORRUPTION KILLS Less protection Nobody is safe More crime People live in fear

CITIZENS’ CONCERNS

Many not convinced about hurt to economy!  Damage understated, but importance over-rated?  ‘Corrupt’ countries (and companies) do well More concern about loss of trust  risks of conflict in family, workplace, government Most concern about unsafe food and drugs, increased crime, ‘terrorism’, loss of safety True of all countries, whether with developing, developed or transitional economies?

THE EXPERIENCE OF CORRUPTION
CORRUPTION COMES IN:  All sizes  Many forms  Two frequencies Not very often - Low Frequency, or Nearly always ‘VHF’ in any one group of activity……..

Anti-Corruption Strategy
Situation 1: John the anti-corruption guy and the corrupt counter-part.

Be

Honest Avoid Prevent Confront Withdraw Record

Anti-Corruption Strategy (cont.)

Be Honest Avoid Prevent Confront Withdraw Record

Avoid Don’t get involved Don’t act fraudulently. Don’t endanger yourself or others.

Confront: Indicate the company policies Indicate the legal legislation

Prevent Make enquiries if you suspect corruption Take preventive measures to stop corruption Don’t instruct, authorize, or condone corruption

Record Record the act of corruption Record the transaction for accounting purposes Keep a copy of the record

Withdraw Just get out of there!

WHY DO PEOPLE ACT CORRUPTLY?
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Personal greed, ‘everybody does it’, so ‘fair’ To help family and friends

an economy of affection because ‘they’ treat us unfairly because the bosses get rich by corrupt means Example: British householders ‘pay cash’ for work and the ‘honest builder’ goes bankrupt

To hurt employers, managers
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So people justify corrupt acts to themselves

A CRIME OF OPPORTUNITY

Personal greed, ‘everybody does it’, so ‘fair’ To help family and friends

an economy of affection because ‘they’ treat us unfairly because the bosses get rich by corrupt means Example: British householders ‘pay cash’ for work and the ‘honest builder’ goes bankrupt

To hurt employers, managers
 

So people justify corrupt acts to themselves

THE CORRUPTION TRAP!
Then somebody new joins the office staff…  If they don’t do the same, a problem…

that may expose the crime of those who do and perhaps threatened if they don’t as for the police recruits in Hong Kong… Without restraints VHF corruption is the norm We need to explain integrity, not corruption

They are urged to join in

Many trapped in patterns of corrupt activity
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Good Private sector Anti Bribery practice is a six step process
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Assessment of specific corruption risks of the business Development of detailed anti bribery policies Implementation of the policies Self monitoring of the effective implementation of the policies Public reporting on the policies and related programmes Independent assurance of the effectiveness of these efforts

Measures to reduce corrruption

The most important thing is to resolve the underlying factors that cause corruption in local government. Continue to change the primary focus of global AntiCorruption campaigns to local governments Because they are closest to citizens, transparency and accountability are the most important to the legitimacy of local officials It is simpler to find partners to stop corruption locally National politicians many times start off their political careers in the local government.

Cont…..

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Accountability-enhancing reforms and Civil service reform Strengthening the oversight and sanctions of local officials to improve accountability Anti-corruption monitoring groups or commissions Enforce existing anti-bribery legislation Create more policies to close the gender gap in public office holding

Conclusion
Finally, attitudinal change is necessary. By changing our thoughts, we can change our attitude and thereby change our behavior, which can change our lives. The quality of our thoughts equals the quality of our lives. Let us all work towards changing our attitude towards corruption. Lets say No to corruption..

Bibliography
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www.wikipedia.com www.google.com CNBC News

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