Just over half of employees at large European companies are aware that their company has an anti corruption policy, according to findings from a new survey by Ernst & Young.
The results of the survey, which was made up of interview results from 2,365 people across 25 European countries, shows that companies still have a lot of work to do in their anti corruption and anti fraud efforts.
The survey also reflected the hardships that companies have faced as a result of the economic turndown, with 60 per cent of respondents saying that cost-cutting was a major challenge.
Sixty-four per cent of respondents expect more companies to get into financial difficulties in the next year, which means non-revenue generating departments, such as Internal Audit and Compliance, are likely to get squeezed.
Results show that ethical expectations have not improved at many companies. Top management agreed that they would cut corners to hit targets, and over a third of employees consider it acceptable to pay bribes to win or retain business.
"Complacency about fraud, bribery and corruption, combined with cost cutting initiatives at many companies, creates additional exposure," said David Stulb, who leads Ernst & Young's global fraud investigation & disputes services.
Two-thirds of respondents said they thought corruption was widespread in their country, and 40 per cent said it had gotten worse since the economic downtown.
Despite this, there was complacency when it came to their own sector, with three quarters saying they didn't think it was a major problem in their industry.
This suggests a 'corruption perception gap' according to Ernst & Young, which means there is a real risk that unethical behaviour will go unchallenged.
Previous studies have shown that many companies are not prepared for the UK Bribery Act, which will come into effect on 1st July, 2011.
The Act has introduced a new offence of failure to prevent bribery, which means companies and their senior management can be held responsible if employees, subsidiaries or 'associated persons' offer bribes.
Despite this, only 26 per cent of UK employees and less than 20 per cent of staff in France and German had received anti bribery training. Over a quarter said they did not trust their management to behave ethically.
The study found that Greek and Russian staff were the most likely to offer cash bribes, with France and Norway the least likely.
Sources: Ernst & Young, Recruiter.co.uk, Reuters
For more information, please see the Menas ACCS website, here.
The findings, released on Wednesday 18th May, found that only a third of people who were aware of their company's policy thought it contained clear guidance.
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