Bribery and corruption are by far the most prevalent form of economic crimes being faced by the manufacturing sector,a survey by global consulting firm PwC has found. According to the results of the fifth biennial PwC Global Economic Crime Survey,2009,over 25 per cent of Indian manufacturing sector respondents have been victims of economic crime in the past year as against 21 per cent of the global manufacturing sector respondents. The survey,'A Guide to Mitigating Fraud and Misconduct in the Manufacturing Sector',said that 50 per cent of manufacturing sector respondents reported fraud incidences,followed by 33 per cent respondents reporting one or more categories of accounting fraud. Employees comprised a staggering 83 per cent of offenders of incidents of economic crime in the manufacturing sector in India. Of these,a substantial 40 per cent each came from the ranks of the top and middle management,the survey noted. The survey,which covered over 3,000 senior representatives globally and 145 in India,noted that 50 per cent of the manufacturing sector respondents from India indicated fraud detection occurred through internal tip-offs. "Although the manufacturing sector in India is buoyed by stellar growth numbers,it faces a daunting risk of fraud and misconduct," PwC India Leader Forensic Services Vidya Rajarao said. The survey further said companies should make focused effort in addressing fraud-related risks. "Effective risk management programmes that permeate all business processes ultimately reduce costs,improve profitability,protect the brand and corporate reputation and mitigate liability," PwC India Leader Consumer and Industrial Products V Sivakumar said.
