Act for Independence from Corruption in Private

Independence Day Special 

Time to Act for Independence from Corruption in Private Sector

Today when I was listening to Speech of Prime Minister's on the occasion of Independence Day,  there was lot of emphasis on corruption free administration in government to make India economic power. I was thinking is this the only thing which can make India economic power and bring prosperity to all. I don't think so.

Importantly, the UNODC in its report points out that while there are many laws in the country that are aimed at checking corruption, "India has no specific legislation addressing corruption in the private sector". It calls for strengthening of existing laws and enactment of new legislation to, among other things, protect whistleblowers.

The first report titled Corporate Integrity - India: Incentives for corporate integrity in accordance with the United Nations Convention Against Corruption "which addresses a larger umbrella of private sector integrity issues", states: "The opening up of the Indian economy in the 1990s, which led to the free inflow of foreign direct investment (FDI), not only increased the role and importance of the private sector in the Indian economy but has also heightened the need for focus on business ethics and corporate integrity."

Please look at the following example and think who is responsible for the following products in the markets - Government or Private Sector:

• Adulterated foods, etc.
• Sub-standard medicines, etc.
• Defective goods, etc.
• Poor quality services across the range of services
• Non-responsive attitude towards consumers at all levels
• Misleading and Wrong claims on packaging and advertisements

and many others..

There are many many such issues exist in the country even after 69 years of independence. These are also hurting our citizens and hurting India's goodwill in the world market as country.

What can be the reason for these defective and adulterated products in the market?

Let us identify the reasons:

Reasons 1. Indian industry do not have competent managers: Is this true? NO. I don't think so. We have some of the best managers in India, our manager were selected by companies after proper interview and they were groomed through proper training process. So, this reason is not valid.

Reason 2: We don't have proper raw material: Is this true? NO. We have raw material which we are using to export our consignments. It is possible that we may be using best of the skills and the best of the raw materials for exporting the materials made in India. There is nothing wrong with this.

Reason 3: Law prevents us from making good products in India for local consumers: is this true? No. If you are aware of any such law or rule, please send the reference please.

Reason 4: Are there laws, policies and schemes which are supporting and promoting the following:

• Adulterated foods, etc.
• Sub-standard medicines, etc.
• Defective goods, etc.
• Poor quality services across the range of services
• Non-responsive attitude towards consumers at all levels
• Misleading & Wrong claims on packaging & advertisements

I am not aware of any such rules or policies, please share if you are aware of the same.

Big Question:

If there are no mandatory rules, laws, policies to make such defective and harmful products and there are enough skill-sets and raw materials which can deliver good products for consumers, why such products are manufactured, dispatched and sold in the market at the cost of public health and welfare. 

Corruption in Private Sector is deep and wide:
 
Is this not a classic case of Corruption in Private Sector, otherwise how defective and harmful products can come to consumer and no one in the entire supply chain is not able to detect defective and harmful products.

In fact there are rules to prevent such products reaching consumers.

Few big questions are:

1. Who is accountable for these products?
2. What is the role of Industry Associations?
3. What should be the role of Government Bodies?
4. What should be the role of consumer organizations? 

If self-discipline is not working, the only option left out is government has to use options to enforce laws to protect public health and welfare. 

Please also read:

Private sector also involved in corruption: Transparency report

Do you have any alternate approach or suggestion, please do write.