Date
18 December 2017
Two in 10 chief executives have been approached with bribes and nearly 11 percent consider misstating performance justifiable to help a company weather bad times. Photo: AFP
Two in 10 chief executives have been approached with bribes and nearly 11 percent consider misstating performance justifiable to help a company weather bad times. Photo: AFP

Ernst & Young: Boards struggling against pervasive global graft

Nearly four in 10 senior executives consider bribery and corruption pervasive in their countries, according to a survey by Ernst & Young Global Ltd.

Two in 10 chief executives have been offered advantages.

Management and corporate boards are struggling to respond to the pervasive activity, the survey of 2,700 senior executives in 59 countries shows.

About 11 percent of chief executives consider misstating financial performance justifiable in order to help a company survive a downturn against 6 percent of all respondents.

The survey also found that compliance fatigue within businesses appears to have set in at a time when they can least afford it.

About 20 percent of companies do not have anti-bribery and corruption policies and less than half of surveyed executives have attended related training. Less than 33 percent of the businesses conduct anti-corruption due diligence as part of their mergers and acquisitions process, Ernst & Young said.

“Enforcement of anti-bribery/anti-corruption laws has become more intensive, with significantly strengthened cross-border cooperation among regulators,” said David Stulb, global Leader of fraud investigation and dispute services practice.

“With new, tougher laws in numerous jurisdictions and enhanced prosecutorial powers and bigger budgets for law enforcement in certain key geographies, this trend is not just a US phenomenon.”

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