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India 'most open' among BRICS

21 October 2013
NEW DELHI: Indian companies performed the best of the BRICS economies in a new survey of corporate reporting practices in emerging markets, while Chinese companies were judged to be lagging way behind.

The findings were detailed in a report from Berlin-based Transparency International, the anti-corruption watchdog, which examined 100 multinationals from Brazil, Russia, India, China and South Africa (the BRICS) plus 12 other countries.

Indian companies were found to have performed well thanks to laws that require them to publish key financial information about their subsidiaries, the Indian Express reported.

Tata Communications topped the list with a rating of 71% followed in second place by Tata Global Beverages, while Indian companies averaged 54% overall.

By contrast, eight of the ten worst performers were Chinese companies, including state-owned Chery Automobiles, and of the 11 companies given a zero for organisational transparency, nine were from China.

"Results show that companies from China lag behind in every dimension with an overall score of 20%," Transparency International said. "Considering their growing influence in markets around the world, this poor performance is of concern."

Companies were assessed according to three categories – how they reported anti-corruption programmes, their organisational transparency, and disclosure of revenue, expenses and tax payments.

After finding that 60% of companies in emerging markets surveyed do not disclose information about political contributions, Transparency urged them to explain to the public about their relationships with governments and what they're doing to prevent corruption.

The report also found that disclosure requirements regulating publicly-listed companies enabled them to outperform state-owned or private companies.

Huguette Labelle, chair of Transparency International, concluded: "As emerging market companies expand their influence, they should seize the opportunity to play a bigger role stopping corruption internationally."

Data sourced from Transparency International, Indian Express; additional content by Warc staff

 
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