About the Blog
This is my diary....what I make sense of, around me. You'll find short prose on contemporary topics that interest me. What can you expect - Best adjectives? …. hmm occasionally, tossed around flowery verbs ?…. Nope, haiku-like super-brevity? … I try to. Thanks for dropping by & hope to see you again
April 18, 2009
The Asatyams of Indian Industry
Advertising : If misreporting of financial statements amounts to a fraud in financial world what would you call misleading advertisements that propagate false claims on unsuspecting consumers? Advertising standard council of India (ASCI) has been pulling up all kinds of companies that have been falsely promising anything from anti ageing to fairness, long lasting blades to fat reduction, better food to dramatic health benefits . Most of these companies, as much as 47 in 2008 were booked for violation of ASCI codes on ensuring truthfulness and honesty in claims made by advertisers.
Marketing: Contests & schemes whose results never get announced, false/misleading promotional schemes & offers such as 0% financing , Discount schemes, 100% Returns etc. Many schemes are misleading in nature, the communication with its catchy line gets reflected prominently in the main body while the actual benefit usually subject to Terms & conditions goes in fine print under an asterisk.
HR : Moonlighting job role & responsibilities, compensation & benefit promises & other misleading claims to prospective candidates at the interview stage are common. Subsequently leading to unkept promises regarding Job role , compensation, rewards & benefits are common practices that HR depts. indulge in frequently. This got particularly accentuated during the bull run when competition was rampant & chasing scarce talent
Operations: People in India are now familiar how credit card companies trap consumer in the so called ‘debt trap’ with revolver facility, or take the case of Telecom Cos who have been accused of Improper billing & misrepresentation of tariff plans, Delays in refund payments , or airlines that does not provide seats despite confirmed tickets.
Stock Market malpractices: Rigging of company share price by promoters in collusion with brokers through circular trading or insider trading practices by Management in violation of SEBI guidelines are commonplace. The number of vanishing companies who get listed on the stock exchanges also tell the same story
Corporate disclosures : If one were to go by the number of firms that have volunteered to subject their corporate governance to assessment by credit rating agencies, it turns out that only 19 of the 4700 listed firms have made this cut. This talks volumes of the quality of corporate disclosures in India.