Tuesday, June 12, 2012

Britannia investigating supply-chain ‘corruption’

Source: Hindustan Times, June 11, 2012

Cookies-to-cheese major Britannia Industries is conducting an internal investigation at its supply chain and logistics department to probe alleged misuse of company powers in giving orders by unfairly favouring some suppliers at the cost of others. This comes within a few days of an alleged Rs. 870-crore fraud at at the Indian arm of German sportswear giant Adidas AG’s Reebok unit .

The high-profile probe is being directly led by Vinita Bali, managing director, Britannia Industries, said informed sources. The investigation aims to find out the number of employees involved.

“We have come across instances of certain practices and behaviour, which are in violation of our code of business conduct, which clearly spells out the ethical standards of behaviour from all Britannia employees at all times. These are being investigated thoroughly and appropriate action will be taken against those employees who have violated that code of business conduct, which every employee signs,” said the company spokesperson.

While the sources said that Bali took swift action and fired 28 people after the scam surfaced, Britannia played down the entire incident, claiming employees were still under probe.

“Ten people have been asked not to show up at work till the investigation is over,” said the company spokesperson.

Britannia has strict and clear code of business conduct and code of conduct for prevention of insider trading by employees. The management was quick to take suitable action once the incident came to light, though it could not be verified since how long the activity was going on, said sources.

The company refused to provide further clarifications. “The probe will be quick and action will be taken,” said the spokesperson.

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