Any unrest has an almost immediate effect on the economy, slowing down areas it impacts and creating ripple effects. The overall cost of violence in India, including activities by anti-social forces (ASF), was estimated at US$646 billion in 2020, representing ~6% of India’s GDP. Anti-social forces are groups engaged in unlawful activities that threaten public peace, individual rights, and the integrity of the legal system. These groups operate in various forms, from organised crimes and corruption to cyber threats and extremist movements. They often find loopholes in law enforcement, and technology to expand their influence.
Activities such as organized crime, corruption, and financial fraud lead to economic disruptions, discouraging investment (including FDI), causing financial instability. Citizens’ security is threatened by violence and terrorism instigated by extremist groups. This has a severe impact on social stability and business environments, necessitating proactive measures to counter their influence and mitigate risks. This monetary loss highlights the severe economic burden caused by these disruptive activities, affecting business operations, foreign investment, and public safety.
Business vulnerabilities and economic fallout from ASF:
Such groups employ various methods to cause harm and disruption, from financial crime networks and cyber fraud rings to organized syndicates, and from militant factions, extremist outfits to communal groups, all threatening stability and security.
In certain scenario, if a link between a business and such forces comes out in the public, it could hamper company’s reputation. Fraudulent actions can drain the companies’ resources and can lead to heavy debts and financial instability. Additionally, these activities can disrupt supply chain, impact market confidence, and result in increased security costs for businesses. Apart from this, association between a business and such forces could have more adverse impact and reversing it would be very difficult.
To ensure a safe and ethical business environment, companies must implement a robust system to eliminate any connections with anti-social forces. They should take decisive and structured actions to sever all such business relationships.
Key principles to avoid involvement:
- Zero Transactions with Anti-Social Forces
The company should categorically refuse to engage in any form of transactions or business dealings with anti-social forces. - Immediate Termination of Existing Relationships
If it is discovered that any business partner or clients are identified as anti-social forces, one should promptly take appropriate measures to terminate all dealings with them. - No Financial Support to Anti-Social Entities
The company should strictly prohibit the provision of funds or financial assistance to individuals or organizations classified as anti-social forces. - Rejection of Unfair Demands
The company should not tolerate any unfair or coercive demands from anti-social forces. Upon identification of such demands, they should pursue all necessary legal actions, including civil or criminal proceedings, against the offending parties. - Collaboration with External Authorities and Experts
The company should establish and maintain close cooperative relationships with relevant external bodies such as the police, legal professionals, and specialized compliance investigators or global screening experts using advanced technology to ensure effective monitoring and prevention.
Anti-social forces hinder both societal well-being and economic growth. Businesses must avoid any engagement with them by implementing thorough due diligence and profiling to identify direct or indirect links to anti-social activities.
