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 Corporate
America is infested with white-collar criminals. MOHAN BABU
warns professionals in India to verify the authenticity or genuineness
of a prospective foreign business partner or employer in the US,
to avoid being duped
As
I write my weekly column, I am also looking at the latest Fortune
500 list that just appeared and gaze in wonder at the company listed
at number five Enron! The Fortune magazine, in trying to justify
the inclusion of Enron in the list, and answering the million-dollar
question, “Why the heck is Enron on the list?” states,
“On Dec 2, Enron went into bankruptcy (a fact that doesn’t
disqualify it for the 500 list)”. While the appearance of the
beleaguered corporation in the venerable Fortune 500 list does not
surprise corporate executives and financial analysts in the US,
it does raise eyebrows. What does Fortune 500 and the inclusion
of Enron in the list mean to Indian technologists? A lot. Especially
since most Indian technologists and technology companies use this
list and others to benchmark American companies and gauge the strength
of their prospective employer or client.
 While
looking for core strength of companies, the oft-quoted maxim used
by financial companies, “past performance is no guarantee of
its future success,” comes to mind. This is especially true
in today’s topsy-turvy world of corporate jugglery. The American
financial reporting system is extremely complex, and although there
is a tremendous amount of information out there, it requires a lot
of persistence to scan through the volumes of data and make sense.
Added to the financial reports are the surveys and reports on the
health and strengths of various sectors that are done by companies
like Gartner and IDC. Of course, reputed magazines too publish surveys
on everything, from lists of leading companies and salaries surveys
to “100 best employers”. Most of the time, analysts in
the US are not content to rely on one source alone; they refer to
a number of sources before forming their own opinion. Candidates
looking for jobs get referrals from a number of sources, read up
about the company, look at the past records and then formulate an
opinion. Similarly, companies go through a process of whetting information
on suppliers and vendors before signing long-term contracts.
Indians,
especially those who do not have a good understanding of the ways
of corporate America are especially vulnerable while dealing with
their (American) counterparts. Corporate America and the financial
system is a modern marvel with the economy fuelling entrepreneurs.
Zillions of players co-exist in the same sphere of operations. For
instance, hundreds, if not thousands of companies with “micro”
or “soft” in their names co-exist with the real Microsoft.
Of course, most of them have little or no resemblance to the software
giant. With the advent of the Web, even a small company (or individual)
with little or no real business can create a façade of being
a “large” American corporation, complete with a snazzy
website and live customer-service operated by an American sounding
person (outsourced to a call centre somewhere on the globe!).
Along
with the innovative entrepreneurship, American business also has
a “dark side” with the existence of hundreds of thousands
of “ponzi” and white-collar criminals. As with most other
things, in business, if it is too good to be true, it must be suspect.
Take for example an e-mail that I recently received, titled suggestively:
“Hi-tech industry manufacturer is now seeking motivated individuals
with entrepreneurial drive for US and Canadian expansion. Huge compensation
benefits programme offered!” The mail went on to say, “Due
to our overwhelming growth of nearly 1,000% over the last three
years, we have an immediate need and are willing to train and develop
even non-experienced individuals in local markets. Now you can have
your very own part-time or full-time business backed with full company
support and startup capital if needed and work right from the comfort
of your home. Create your own hours!” I can empathise with
budding entrepreneurs in India, sitting in front of their computer
screens in cybercafé’s who happen to receive mails like
these, succumbing to their greed.
I
frequently receive e-mails from small Indian tech companies and
individuals who have dealt with their American counterparts and
have been duped. These small businesses work hard on acquiring the
necessary foreign exchange from various sources in India and send
them as “deposit” to prospective clients without knowing
anything about their operations. Even individuals promised a cushy
high-tech job and an American visa do not balk at shelling out thousands
of rupees, without verifying the authenticity of the prospective
employers. By the time they realise they have been swindled, it
is too late to do anything, especially if they are sitting in a
faraway land.
Going
back to my original example of Enron, if a business house in India
or elsewhere in the world were to deal with a company merely based
on the fact they are listed in a “reputed” survey (like
in the Fortune 500), they would be doing so at their own risk. Of
course, no large Indian company is going to deal with foreign counterparts
without due process, but you get the idea!
Getting
down to the details of the various sources and resources one could
use to verify the authenticity or genuineness of a prospective foreign
business partner or employer would require a book by itself. However,
there are a number of useful resources on the Web that are free
and easy to use. One good resource would be the local Chamber of
Commerce and BBB (Better Business Bureau) of the region where the
company does business. Most of these organisations also maintain
excellent and easy-to-use websites. Shooting off an e-mail asking
for references may not cost you much but the returns can be astounding.
While dealing with businesses in a free economy, it is your responsibility
to be cautious.
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