Back on track?

How a German engineering company is trying to change its fate in India through a compliance programme aimed at combatting corruption

By Lord Goldsmith QC

The international commercial community’s perception that Indian businesses are at best neutral in their view of corrupt practices places those companies at a competitive disadvantage in the global market. Recent events in India, like the manipulation of prices in the auction of 2G spectrum, the Commonwealth Games scandal and the Uttar Pradesh food and energy subsidy affairs, have reinforced this perception.

There is undoubtedly a strong grass roots desire in India to put an end to corruption. This is reflected in the India Against Corruption and Jan Lokpal movements, which seek to establish a Jan Lokpal: an independent body to investigate corruption at all levels of government.

But it is not just India’s lawmakers and authorities who must tackle corruption. Close scrutiny of corporate governance plays an increasingly important role in international business ventures, with the risk of billion dollar penalties and debarment from public contracts if standards are not met.

Lord Goldsmith QC is a former UK attorney general and currently a partner and the chair of European and Asian Litigation in the London office of Debevoise & Plimpton LLP. The author wishes to acknowledge Gaurav Sharma, an associate at the firm’s London office, for his contribution to the article.