Hong Kong/ London: India has the most transparent companies while Chinese firms are the most opaque, a Transparency International survey report released on Monday has found.
The survey by the Berlin-based watchdog evaluates efforts by companies in emerging markets to fight corruption and covered 100 companies in 15 countries that also included Brazil, Mexico and Russia.
India topped the charts after all 19 Indian companies surveyed achieved a minimum score of 75 percent in terms of being open about their company structures and holdings. Much of this transparency was attributed to the country's revamped Companies Act.
The results further showed that Chinese companies are the worst performers, with an average score of 1.6 out of 10 in the tests. The reason behind the dismal performance was the weak or non-existent anti-corruption policies and procedures.
The study covered 37 Chinese companies, making them the survey's biggest group.
All the three companies that scored zero out of 10 were all Chinese: automaker Chery, appliance maker Galanz and auto parts maker Wanxiang Group. The list's bottom 25 spots were also dominated by Chinese companies.
The overall score slipped since the last Transparency In Corporate Reporting survey in 2013, falling a fraction to 3.4 out of 10, with three quarters of companies scoring less than half.
"The very weak Chinese results stem from weak or non-existent anti-corruption policies and procedures, or a clear failure to disclose them in line with international practice," Transparency International said in a press release accompanying its report.
Indian firms, on the other hand, dominated the top spots. The reason being strict government requirements for financial dislosures, including subsidiaries operating in different countries.
The company which took first place is Telecom company Bharti Airtel with a score of 7.3 out of 10, followed by six units of conglomerate Tata and technology company Wipro.
Only one Chinese company, telecom gear maker ZTE, was placed in the top 25.
Companies were scored on three measures: anticorruption programs, the amount of information disclosed about subsidiaries, joint ventures and other holdings, and financial data released for operations in each country where it has business.
Transparency International said that the findings were "pathetic" and highlighted the urgent need for big multinational companies to do more to fight corruption.
According to the IMF, emerging markets account for over 70 percent of global growth, with concerns that corruption will hamper growth and limit socio-economic progress.
The report follows the "Panama Papers" leaks which exposed the use of shell companies and offshore tax havens, often for illegal purposes such as tax evasion and money-laundering.
This put tax avoidance and corporate secrecy at the top of the global agenda.
The Transparency International study took into account three different ways in which companies can address corruption.
As per report, the Transparency International researchers said this information was collected from corporate websites and other publicly available sources.
(With Agency inputs)
