New Delhi, Apr 25 (IANS): The controversies through business ethics usually stem from violations of insider trading rules and non-compliance with SEBI LODR guidelines.

Business Ethics has emerged to occupy a major portion of controversies both in service and manufacturing sector with as much as 72.6 per cent, as per the research and analysis carried out by ESGRisk.ai with NSE 600 companies in the financial year 2020-21. This is despite the fact that corporations are taking measures for sustainable business practices.

The controversies in the key issue of business ethics grew significantly between FY2020 and FY2021.

Sankar Chakraborti, Chairman, ESGRisk.ai & Group CEO, Acuite, said that "several of the controversies are predominantly with respect to business ethics and stem from violations of insider trading rules, money laundering and non-compliance with SEBI LODR guidelines. BSFI sector is at the heart of ESG integration, the industry should set up policies, undertake initiatives and curate training programs apart from just following the regulations".

Among the industries that have experienced the most controversies after Banking & Financial Services, are Pharmaceuticals and Metals.

ESGRisk.ai has also recognised a rise in contentions over environmental management issues in FY2021.

In several cases, pollution control boards' regulations with respect to emissions, water pollution and environmental management were violated. In the social category, a rise in controversies related to employee safety has been observed. Occupational health and safety hazards are largely attributed to plant fires and explosions, inadequate maintenance of machinery, and poor handling by workers.

Corporate frauds in India are frequent whistle blower complaints, corrupt audit practices and compliance fines are typical corporate governance controversies.

According to ESGRisk.ai's research, the controversies in the key issue of business ethics grew significantly between FY2020 and FY2021. Several of the controversies stem from violations of insider trading rules and non-compliance with SEBI LODR guidelines.