Corporate integrity challenging to maintain for 78% Indian professionals amid volatile market, says report

According to the survey, entities in India have faced more action from regulators compared to other emerging markets covered in the survey.

"Amidst shifts in regulatory expectations and economic stress, 60 percent of respondents from India said that regulators have taken action against their organisation for breaching integrity standards or regulations, compared to 38 percent in emerging markets," it said.

At the same time, 65 percent in India cited that it is difficult to adapt to the speed and volume of changes in regulations as against 45 percent in the emerging markets.

EY – India and Global Markets Leader for Forensic and Integrity Services, Arpinder Singh delved into the responses of Indian professionals and observed that with 67 percent of large organisations in India, having reported issues of misconduct to management or a whistle-blowing hotline, the percentage is likely to be similar if not significant in the Indian startup ecosystem.

"As Indian startups continue to grow, introducing strong corporate governance practices will go a long way in enhancing regulatory compliance, preventing fines and penalties and protecting assets and reputation. More and more new age companies must prioritise proper implementation of compliance structures as they can significantly help organisations drive long-term sustainable value," Singh said.

According to 65 percent of respondents in India, it is difficult to adapt to the speed and volume of changes in regulations as against 45 percent in the emerging markets. The survey shows a gap between what companies said they have in the way of an ESG policy and how they demonstrate accountability.

”Only 33 percent of emerging market respondents said their company has a policy on either Corporate Social Responsibility (CSR) or ESG, as compared to 47 percent in India,” it said.

For 43 percent of professionals, cyber risk is the top risk when acquiring, partnering or investing in other organisations compared to 28 percent in emerging markets.

According to the report, 8 percent respondents in India knew very little of policies procedures for keeping office premises, equipment and networks secure as against 28 percent in other emerging markets. The survey was conducted in 33 emerging markets, including in India between June and September 2021, EY said.