Fifteen percent of chief financial officers around the world arewilling to make cash payments to win or retain business, accordingto a survey of executives interviewed by the accounting firm Ernst& Young LLP.

The firm's annual “global fraud survey” of 400 finance chiefs,interviewed from November to February, found a greater tolerance ofbribery compared with the previous year, when 9 percent said theywould make cash payments. Five percent of CFOs said they wouldmisstate financial performance, while 3 percent said that the yearbefore, according to the survey.

“One of the most troubling findings of the survey is thewidespread acceptance of unethical business practices,” accordingto the survey released yesterday. “It is particularly alarming thatrespondents are increasingly willing to make cash payments” andmisstate results to survive an economic downturn.

The survey comes amid increased enforcement of the U.S. ForeignCorrupt Practices Act, which bans most payments to governmentofficials overseas, as well as the U.K. Bribery Act and similarmeasures in other countries. Since 2008, the U.S. has resolved 50corporate foreign bribery cases, costing companies $3.9 billion infines and penalties.

1,700 Executives

While companies increased anti-bribery programs, 1,700executives interviewed in 43 countries expressed “a certain degreeof fatigue about anti-corruption compliance initiatives,” accordingto the survey. Aside from finance chiefs, Ernst & Younginterviewed leaders in legal, compliance and audit.

Management is giving mixed messages, meaning “the tone at thetop” is diluted by the failure to penalize misconduct, the firmreported. It found that 44 percent of executives believe employeeshaven't been penalized for violating policies.

“Even if management is strongly communicating that bribery andcorruption isn't OK, they don't ever see anyone being punished forthat,” Richard Sibery, the firm's leader of fraud andinvestigations in the Americas, said in a telephone interview.“There are still some questions about whether there is teeth tocompany policies.”

Ernst & Young, whose global headquarters is in London, isamong hundreds of companies worldwide, including accounting and lawfirms, that compete for business to advise corporations oncomplying with anti-bribery laws and conducting internalinvestigations.

While most of the cases involving corrupt payments brought byU.S. prosecutors and regulators involve third parties working forcompanies, 44 percent of those interviewed said they didn't conductbackground checks on such entities, Ernst & Young reported.

Attitudes toward corruption varied by region. Ernst & Youngfound that 84 percent of respondents in Brazil, where 50 peoplewere interviewed, said they think that bribery and corruption occurwidely in the country.

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