Tuesday, April 17, 2012

Corruption in India and its effects on Tata Group

Referring to Transparency International, in India 55% of the population has first-hand experiences with paying bribes to get several actions done.

It does not matter if one wants to buy a bottle of gas, official governmental bidding or transportation of goods within the country. All of those activities usually are getting done by paying bribes.
By doing this, the poor man is getting poorer and the rich ones are getting richer.

In accordance with an article by rediff (http://business.rediff.com/column/2010/oct/04/guest-india-billionaires-among-a-sea-of-poor-people.htm), India holds several Billionaires in the midst of a sea of poor people.

Referred to World Bank more than 80% if Indian polulation earn less than US$2 a day, although almost a 7% (rediff.com) share of the worlds billionairs are living in this country.

This fact obviosly is caused by inequality. Bribes are regulating official biddings and daily trade instead of laws which would carry out equal chances for everybody. Because of that, wealthy people can afford a normal and good life in India, meanwhile the poor population is not able to face equal chances in society.

Tata Group
Even though corruption is a daily life and often practiced business in India, Tata stricly follows its filanthrophic principles and there was not a single case of corruption uncovered in combination with Tata.

The Author Michael C. Knapp explains in his book Contemporary Auditing,  that According to Newsweek, Tata‘s rigid ethical standards are so well known, that corrupt [government] officials
typically don‘t even bother asking Tata for bribes.


Beginning at governmental regulations, the entire sytstem has to be restructured and corruption needs to be eliminated from the heads of indian population.
If more companies and public officials would follow those principles in future there could be the chance of reaching more equal rights for everyone and thus improving the economical and social situation in entire India.