Search
 

Fighting Corruption May Be Good for Business

A survey recently released by EY dispels the notion that compliance with anti-bribery and corruption policies reduces revenues.

By Treasury & Risk Staff | Updated on July 07, 2015
In some parts of the world, small-scale bribery and corruption are widely seen as greasing the wheels of commerce. It’s not uncommon for a developing-market subsidiary to complain, when asked to comply with the values of a foreign parent company, that compliance will hamstring its growth. But a recent study suggests that such complaints are baseless.

The EY “Europe, Middle East, India, and Africa Fraud Survey 2015” polled 3,800 employees, managers, and executives in 38 EMEIA countries. One of its less-surprising findings is that for global businesses, the risks of fraud, bribery, and corruption are widespread.

Survey respondents were asked about the prevalence of corrupt practices in their country, and about their attitude toward corruption. Figure 1, “Fraud, bribery, and corruption across EMEIA” (on page 4 of this article), shows geographic differences in business culture. The results are striking. For example, while nearly all respondents in Kenya believe bribery and/or corrupt practices are common in that country, only about a third of respondents from the Middle East feel that way. Yet far fewer respondents from Kenya than from India—or from Spain—believe that companies in their country frequently report better financial performance than they actually achieve.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

Yellen Oil-Cap Plan Would Blunt Russian Reprisals

Christopher Condon |

“Russia’s going to face an insurance and financial services ban. ... Why should they retaliate for an initiative that enables their oil to continue to flow through to world markets at a price that is profitable?”

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.