How can businesses avoid exposing themselves to instances of corruption?
VR: To avoid corrupt practices in India, businesses must have realistic expectations. Incorporating a company could take up to 12 months, and rushing for early revenue might tempt shortcuts, including corrupt payments. C-suite support is essential to ensure operations are legal and ethical, even if it takes longer. While it requires patience and strong cash flow, standing firm against corruption from the start often prevents such issues in the future.
If business leaders do find themselves having to deal with corrupt practices, what is the best way to handle this situation without damaging prospects for business growth?
VR: If you have a situation where you have made an inadvertent corrupt payment, it’s best to stop the practice immediately and take steps to ensure it does not happen again. Report it to your own internal compliance and legal team so that someone is aware of it and record it properly in your books and financial statements. Don’t disguise it as a payment for something else.