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Global survey shows bribery and corruption in businesses

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Sociologists from The University of Manchester and global law firm White & Case LLP have found that corruption in businesses is still a very common thing all over the world. This was announced by the portal Phys.org.

According to the Global White Collar Crime Survey 2018, when asked whether their company has a formal policy in place, 29 percent employees said ‘no’ or ‘don’t know’, indicating that there was either no policy, or no effective communication strategy around it.

Also 39 percent of respondents said that opportunities for bribery and corruption, as well as pressure to overlook risks, exist day-to-day in their copmanies. About 40 percent of employees from legal/compliance departments claimed that they had felt under pressure to approve the engagement of a third party despite bribery and corruption red flags.

The sociologists think that, the main problem is the attitude to the bribery. For example, almost half of respondents feel that people who pay bribes on behalf of their company are rewarded internally, and/or able to enjoy substantial personal benefit. Of those who agreed with this 64 percent felt that the employee concerned would be awarded “special status”. Also 60 percent think they will get career promotion for helping to meet company targets.

– Companies need to do more to tackle this idea that wrong-doing will result in substantial personal gain. The consequences of bribery and corruption are severe, and law enforcement agencies’ powers to investigate and prosecute have grown substantially over the last few years. Employers need to make sure their staff are aware of the legal implications, and severity of penalties, – said Jonathan Pickworth, Partner at White & Case.

Also sociologists found out that when workers suspect or identify bribery and corruption by a colleague, 88 percent would be inclined to raise the issue internally, rather than externally. Only 3 percent think they would make use of a whistleblowing hotline, and only 2 percent said they would call the police or other authority. Besides 6 percent confirmed that they wouldn’t notify anyone.

– The survey offers a comprehensive overview of the attitudes of companies and their employees towards bribery and corruption. With a raft of new legislation designed to tackle white collar crime and extended powers awarded to regulators and law enforcement agencies globally over recent years, companies need to pay more attention than ever to ensuring internal compliance and systems are robust, – says Dr. Nicholas Lord.