Stronger commitment is required to improve the effectiveness of boards of companies and they should constantly assert ethical conduct while focusing on risk management, according to a CII report.
To promote integrity and transparency in governance, the chamber has introduced a 'Model Code of Conduct' for business ethics to act as a guide to industry to adopt best practices.
"Corruption, bribery and improper payments continue to be high compliance risks in the country," CII said in a report.
It has also prescribed norms for business courtesies which are often extended by enterprises like gifts and entertainment, transportation and meals.
CII suggested that gifts should be of nominal value and in nature of consumables, instead of cash or jewellery, etc. Moreover, gifts to family members should be avoided.
Besides, casual lift, ground transportation to and from the company office or facility can be provided in the ordinary course of business but these should be limited to customers or government officials or regulators, while "extravagant modes" like air fare/rail fare should be avoided unless mandatory.
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Moreover, CII said meals must only be offered as a casual social hospitality and lavish or extravagant meals should be avoided by companies when extending courtesies.
The guidelines can be adopted by companies which currently do not have any specific guidelines on business courtesies. For companies with similar existing policies related to business courtesies, these can act as reference.
"CII considers ethical practices in business dealings to be critical for the development and growth of the industry in the country. The adoption of a simplified code by industry including SMEs is a landmark step in inculcating a culture of ethics and good practices in corporates," the chamber said.
The CII Model Code of Conduct covers key areas of business practice such as maintaining accurate books and accounts, prohibiting bribery and corruption, fair and equitable treatment, health and safety, quality of goods and services and environment and society considerations.
"Integrity, transparency, governance and absence of corruption are inter-dependent and inter-connected to each other. Business leaders must continuously improve the way they approach and collaborate to set high standard of ethics and principled business practices," CII said.
The chamber has also released an 'Advisory on Business and Human Rights' suggesting general principles and recommended actions to be followed by companies for adhering to integrity and transparency in business transactions.
Its objective is to guide industry on respecting and promoting human rights in business and to share and showcase best practices to both increase awareness of the subject, while encouraging companies to move in the direction of deeper compliance over a period of time.