CVC for value-based system to check graft in corporates

The Central Vigilance Commission has emphasised upon a ''value-based system'' to promote good governance and check corruption among corporates.

“Companies based on transparent and efficient systems which provide fair treatment and quality output to all their stake holders are as important to democracy as are political institutions. Companies founded on ethics and good governance are the foundation of sound market economies,” Central Vigilance Commissioner Pradeep Kumar said, on Monday, addressing dignitaries at the fourth anniversary celebrations of Vigilance Study Circle (VSC) - Bangalore.

He pointed out that good corporate governance creates safeguards against mismanagement and acts as an antidote to corruption.

Speaking at the same event, Canara Bank Chairman & Managing Director S Raman, urged the VSC - Bangalore, to focus more on understanding the reasons and contributing factors behind wrongdoings in companies and to come up with procedures and systems to prevent them. He also suggested that measures be taken to ensure that people who work with honesty be protected.

He said, “White collar crime has caught the attention of people around the world. Even the world financial crisis is due to irresponsibility on the part of certain individuals.” Referring to certain global cases, where individuals were involved in frauds and crimes related to insider trading, he opined that for a free economy to progress, it is important to have a level playing field for everyone. Raman said, “In such situations, none of the actors should be privy to something on their own.”