EY Report Highlights Need For Further Work To Address Issue

A new survey released by Ernst and Young (EY) has suggested that disparity on policy, enforcement and execution is having a significant impact on the ongoing efforts to tackle fraud and bribery in the Asia-Pacific region.

The report from the global professional services firm revealed that while 48 per cent of executives working for companies in the region which have anti-bribery and corruption policies believe they are good in principle, they do not believe they work well in practice.

It also revealed that just 40 per cent of respondents overall stated their company has a policy in place on bribery, which puts the region well behind other regions in that regard.

The survey also found that 19 per cent of respondents believe bribery and corrupt practices have increased, with EY also warning that a disconnect may be emerging with many companies being under the illusion they are addressing the issue when in reality they remain exposed to risks.

Carried out from March to May this year, the EY Asia-Pacific Fraud Survey polled over 600 staff and executives from countries including Australia, China, Indonesia and New Zealand.

Expert Opinion

These findings are clearly a significant cause for concern, not just for that region specifically but also for businesses based across the globe which may have links or are looking to build such links in the countries polled in this survey. <br/> <br/>“These findings highlight the need for strong corporate governance and companies need to consider whether they have adequate procedures in place and systems to enforce them to protect themselves from potentially illegal activity. <br/> <br/>“The research is also a warning sign to companies to ensure they check and are aware of the systems that their partners in the region have in place. Failure to consider this could have significant consequences.”