Does Corporate India too need one Anna Hazare?
In this issue:
» Warren Buffett hits a homerun with Bank of America
» Indian investors can now bet on US stock indices
» US interest rate policy may fuel inflation in India
» India, China corner lion's share of PE investments in emerging markets
» ...and more!
-------------------------------- Don't Miss WebSummit on Gold & Stocks --------------------------------
Now that Gold is at an all-time high, should you be booking profits, or buying some more?
Join us for a Free WebSummit with Ajit Dayal to get an answer! Claim Your Free Pass Now! Click here!
---------------------------------------------------------------------------------------------------------------
00:00 | ![]() | |
So as not to lose their money with fraudulent and shady promoter, foreign investors and private equity funds have further fortified their due diligence procedures. They are now not just looking at financial and legal matters alone. They are doing thorough background checks on the companies and the promoters. They popular term for it is 'corporate espionage'. In simple words, foreign investors are now hiring surveillance agencies to carry out the due diligence on company promoters. Spies are assigned the task of doing the 'market due diligence' to check the integrity of promoters. They secretly investigate their lifestyle for any signs of deceit; seek information from competitors, vendors and so on.
Such kind of due diligence has gained huge momentum in recent times. Investors are now being very cautious even during the early stages of investment. According to certain espionage experts, such kind of spying is most prevalent in vulnerable sectors like infrastructure where fraudulent practices are rampant.
Another reason for this kind of caution is the fact that India has very few companies that have a long and tested legacy. In fact, in a recent survey that we conducted about the most trustworthy corporate house in India, the Tata Group emerged the unanimous winner.
India is witnessing a sea change in the way its people are looking at corruption. In recent times, the fight of the common people against corruption has assumed epic proportions. Their collective frustrations have found a powerful voice by the name of Anna Hazare. While Team Anna fights for a stronger Lokpal Bill, Corporate India too urgently needs to revamp its tarnished image.
Do you think Corporate India also needs one Anna Hazare? Share your comments with us or post your views our Facebook page.
01:11 | Chart of the day | |
![]() |
01:51 | ![]() | |
02:33 | ![]() | |
03:02 | ![]() | |
03:46 | ![]() | |
Of course, both these countries in recent times have been facing headwinds in the form of high inflation and interest rates which is expected to slow down Gross Domestic Product (GDP) growth. But these are more medium term concerns and despite them, emerging countries have still been logging in better growth rates than their developed peers. What is more, the former are expected to have the edge in the longer term as well. So it comes as no surprise that private equity funds would want a share of the emerging market pie.
04:30 | ![]() | |
04:45 | Today's investing mantra |
Today's Premium Edition.
Recent Articles
- All Good Things Come to an End... April 8, 2020
- Why your favourite e-letter won't reach you every week day.
- A Safe Stock to Lockdown Now April 2, 2020
- The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...
- One Stock that is All Charged Up for the Post Coronavirus Rebound April 1, 2020
- A stock with strong moat is currently trading near 5-year lows.
- Sorry Warren Buffett, I'm Following This Man Instead of You in 2020 March 30, 2020
- This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...
Equitymaster requests your view! Post a comment on "Does Corporate India too need one Anna Hazare?". Click here!
25 Responses to "Does Corporate India too need one Anna Hazare?"
rajesh kumar
Sep 4, 2011i have read ur views about corruption as well as your views about corruption in corporate india. reading this in an investment letter prompted me to remember the interview on corruption that i read in a US investment letter that i subscribe to. i do not know if i can send it bu copying it on this page, but maybe u can send me an e mail address where i can send it as an attachment. it really is worth reading and propagating, at least to make us all aware! so let me give it a try to copy and send it. COULD NOT DO IT! MAYBE U CAN SEND ME AN E MAIL ADDRESS WHERE I CAN SEND IT AS AN ATTACHMENT.
D G Keni
Sep 3, 2011"Does Corporate India too need one Anna Hazare?" In my view TATA Group is one Anna Hazare in Indian Corporate World. However for many years no one joined with him till today because they do not have any business ethics with human face.
Leon
Aug 31, 2011Absolutely. Corporates in India have been a corrupt lot for several decades. Each city in needs a Corporate Lok Pal/ Lok Ayukta.
I would also recommend once a person is found guilty, all the wealth the person has illegally accumulated over the years as well as his 'personal' wealth and assets (including property) be impounded and confiscated and the non-cash assets be auctioned off to the highest bidder, the proceeds be used for the upliftment of society, better roads & infrastructure, education, health, building of affordable hospitals for the common man.
Leon
N.America
satvinder kaur,ph.d economics
Aug 30, 2011no doubt, Hazare has raised a good issue against corruption, bt in my point of view the issue raised by baba ramdev was so precious for the development of pro-poor in India, which is a great concern nowdays.i am also strange to think that as the roots of corruption are existing in corporate/capitalistic sector, than why Anna remains silent on this. As far as the bill is concerned mere the passing of a bill and think there is end of corruption is a foolish thing, first the implementation should not be poor, as land reform case in India and secondly the one who want to do bad, he can find the alternative, as we usually say that where there is a will there is a way.this will can not finished upto there is existence of capitaism, so there should be social transformation from Semi feudalism/capitalism to socialism.
Joshua Kurien C
Aug 29, 2011The Liberalisation and globalisation has opened up tremendous opportunities for commiting fraud on the public by corporates. India badly needs a replication of the struggle by civil society headed by Anna hazare
M.k.Kapoor
Aug 28, 2011It is utmost important in Indian Big corporate houses, internal corruption is at peak, lot of profits are eroded by the senior executives, if government or private investigating agencies investigate wealth of senior executives of Big corporate houses like Tata, Reliance, etc you will find shocking results of the wealth of these executives, actually IT Dept sh be effective.
Naresh Jain
Aug 27, 2011Ofcourse even corporate India needs a Anna Hazare too and that too immediately.I think the corporate (without exception) is responsible for corruption in high places. Corporate's have a social responsibilty too and they would do a world of good for the country if they stop corruption imediately. Tata's according to the survey are not corrupt,but its not so.May be Ratan Tata is not corrupt but he cant manage all his units and departments and the management indulge in all sorts of corruption. But I may concede that they 'Best among The worst".Eradicating of corruption is as necessary in corporate's as it is in the other private and public departments.
Naresh Jain
Aloysius
Aug 27, 2011Here we think of the lesser devil than the saints. The laws in India are so drafted and passed that, I challenge anyone who can really comply with it and live with a free concious saying that I have fulfilled my obligations as a citizen of India. We have too many laws and too many agencies but each conflict with each other. Simple example is the recent bomb blast in Mumbai. Too many intelligence agencies and what were they doing and we do not know what is happening in this front as now the press and popular sentiment is janlokpal bill. On the televisions it is interesting to see the way the congress and bjp fighting. Since I come TN and water is a scarce item and one should see people fight when collecting water, that is due desperation and the same mood. Shame on India when we take pride on the most working democracy and biggest democratic country. Will corporates allow a Anna Hazare like person to come to pull the rugs under their feet??? They do not have to look for popular sentiments. Just look around and see the corporates exploiting the natural resources as if with this generation the whole world is going to end.
Suresha Aithal
Sep 4, 2011yes, they are are the main bribers of the government corruption.It is not so easy job.When we go for our work to govt offices we want our work to be done first there we offer bribe even he doesn't ask.We Cant wait for a day or two.so we bribe. if we are in fault we offer bribe. When we are on the wrong side of the road,parked our vehicle at no parking area if caught by police man we offer bribe of Rs 50 for a fine of Rs 100/- So both are corrupt.This is one example there are hundreds thousands.