A 2013 Anti-Bribery and Corruption Benchmarking Report by Kroll and Compliance Week exposes the disparity between the knowledge that company executives have about corruption and how they choose to take action.
The survey results were based on responses by 286 executives, many of which identified as “Chief Ethics & Compliance Officers,” at large companies. The highlight of the survey results was the revelation that 47% of global corporations take no steps to train their third parties and business partners on anti-bribery and corruption efforts, even though 50% expected their companies’ risks to increase in the next 12-18 months. Below is a selection of statistics from the report:
- 37.7% of respondents say they have “well-defined, documented process[es] dedicated solely to global bribery risks,” but 42.7% say corruption risks are part of a larger documented process to address compliance risks.
- Only 30% of the executives who said their organizations do train third parties believed their trainings to be effective.
- 20% of corporations based outside of North America do not conduct any anti-corruption training with their own employees; 18% say they do not have an anti-corruption policy or they have one that they don’t require employees to read.
The report also makes the point that smaller businesses are more likely to rely on certification reports from their third parties, rather than conducting their own investigations: “It may well be that smaller business are expecting fewer bribery risks because they have similar operations – but another explanation could be that those companies don’t fully understand what their risks are.” It is true that implementing anti-corruption measures seems to be a significant investment that can only be made by large companies. However, bribery and corruption presents a risk to companies of all sizes from most industries and localities.
Allegations of bribery and corruption can damage a company’s reputation as well as its ability to compete in the market and retain a profit, if it is concerned with resolving any legal actions. Investing in anti-corruption procedures is not only necessary for preventing corruption and bribery, but is also a critical long-term business investment.
Is your company seeking guidance on how to establish an anti-corruption campaign with your key supply chain and business partners? Does your company have anti-corruption procedures which are not fully implemented? CREATe Leading Practices offers a three-step approach to assess, evaluate, and improve your company’s corruption prevention program. E-mail email@example.com for more information.