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ARTICLE · 11 SEPTEMBER 2017

Small And Medium Businesses Need Systematic Intervention By The Government To Help Tackle Bribery

To cope, SMBs tend to ‘work around' these requirements, adopting practices that may be perceived as corrupt.

IndiaCriminal Law

One of the reasons for the proliferation of bribery in India is the complex structures—comprising legal, tax, and other frameworks—one has to follow to conduct business. Small and medium businesses (SMBs) often find themselves lacking the capability and the resources to understand some of these frameworks, particularly those pertaining to anti-bribery and corruption. To cope, SMBs tend to 'work around' these requirements, adopting practices that may be perceived as corrupt.

Corruption, however, is not a new phenomenon, and neither is it a developing world problem, as recent unearthing of global fraud and bribery scandals may indicate. Yet some countries are perceived as less corrupt than others. It is hard to determine what these perceptions can be attributed to: major legislative changes, greater rate of prosecutions, higher fines, political shifts, public awareness schemes, or other initiatives.

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