According to a new Ernst & Young survey,
illegal business practices including bribery are still used by many organizations to secure or retain business, despite the rise in international anti-corruption legislation and law enforcement…
Key findings of this global, private sector survey include:
- Although companies are doing more to establish anti-corruption programs, their efforts are being undermined by a lack of knowledge about relevant legislation.
- Two-thirds of respondents claimed to know nothing about the Foreign Corrupt Practices Act (FCPA).
- Over two-thirds of respondents believed their internal audit teams were capable of detecting bribery and corruption.
The full survey is available here. Other notable findings are:
- Regulatory enforcement is significantly stronger than in the past
- Basic anti-corruption compliance is lacking
- 24% experienced an incident of bribery or corruption
- 23% have been asked to pay a bribe to retain or win business
- 18% lost business to a competitor that paid a bribe
- Mining, utilities, insurance, and manufacturing are most corruption prone industries. Least corrupt? Surprisingly – its energy and banking!
When allegations of bribery or corrupt business practices are made, three most significant impacts on a business are:
- Fines and penalties (45%)
- Being blocked from markets (44%)
- Inability to grow or expand business (35%)
The survey has a wealth of other interesting information. Overall, its a very useful document if you are looking to make the business case for fighting corruption.
Published Date: May 21, 2008