Deloitte Announces Results of Anti-Corruption Report
Deloitte announced today the results of an anti-corruption study of 329 management, finance, strategy and business development professionals from around the world. The study, entitled Fortifying Anti-Corruption in Today's Corporation, indicated that the vast majority of those surveyed (93 percent) believe that an internal investigation should be conducted if a significant incident of corruption were uncovered and 75 percent support zero tolerance anti-corruption policies with strong disciplinary measures, including firing those responsible for corrupt acts.
The study found that only 41% of respondents indicated that senior management should investigate and deal with matters internally or wait to see if there are consequences rather than make a voluntary disclosure to authorities if a significant incident of corruption was uncovered at their organizations.
The study also found the following:
- Fitting in and gaining business are top motivators for bribery by executives. When asked about the top motivators for an executive to pay bribes in their industry, fitting in with local business cultures (33 percent) and gaining more business (40 percent) garnered the most responses. Key Point: It's human nature to be tempted to adjust ones moral compass to the situation.
- Geographic and industry risks are reportedly being addressed by many. While two-thirds of respondents (67 percent) report that their companies adequately address corruption risks in the geographic regions where they do business and 72 percent say their companies' risks are adequately addressed for their industries, 32 percent would prefer that their organizations spend more on anti-corruption programs. Key point: Corporations have made strides in anti-corruption, but more can be done to address corruption risk
- Anti-corruption programs aren't consistently used around the world. Some companies still lack anti-corruption programs, despite the inherent risks. Geographically, 18.2 percent of Middle Eastern and African, 15.8 percent of Eastern European, 9.1 percent of Asia-Pacific, 8 percent of emerging market and 7.7 percent of U.S. business leaders surveyed reported having no anti-corruption program in place. Key point: Multinational companies considering new cross-border partnerships or transactions should include anti-corruption program reviews as part of overall due diligence.
- Tone at the top should set anti-corruption policy. While senior management (39 percent), general counsel (24 percent) and compliance officers (21 percent) were the first groups identified from which executives would seek advice in handling a corruption incident, 61 percent of respondents said that the most effective role for the CEO is to send out a strong signal and remain personally involved in anti-corruption efforts. Key point: Executives expect committed leadership on this issue from the CEO.
Labels: FCPA
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