|
Could Your Business be Affected by Bribery
and Corruption?
 Bribery
and corruption are just as likely to affect
SMEs (Small and Medium Sized Enterprises) as
large companies, yet only one fifth of SMEs
feel able to distinguish between bribery and
corruption or corporate hospitality and
facilitation fees, a research report from
ACCA (the Association of Chartered Certified
Accountants) reveals today.
The report – called Bribery and corruption:
the impact on UK SMEs – is the first insight
into how SMEs are affected by the issue, and
reveals a fundamental uncertainty amongst
SMEs about what bribery and corruption
amounts to in practice.
Over two-thirds (69%) of respondents to the
survey agree that SMEs are likely to be
confronted with bribery and corruption in
the course of their business dealings, yet
fewer than half thought that SMEs understand
the law in this area.
Specific findings from the survey include
the following:
-
Seventy per cent of respondents said the
potential for bribery and corruption
exists in all commercial dealings.
-
Almost two thirds (63 per cent) agreed
cross border negotiations could fall
foul of bribery and corruption, while a
similar percentage (64 per cent) thought
it could arise as a result of pressures
from the supply chain.
-
Fewer than half (46 per cent) considered
that SMEs would be able to differentiate
between contract-related consultancy or
facilitation fees and bribery and
corruption.
-
Sixty-two per cent said there was not
enough suitable guidance to help SMEs
deal with issues relating to bribery and
corruption.
-
Sixty seven per cent of respondents
thought that successful, high-profile
convictions would have the greatest
impact in terms of raising awareness of
bribery and corruption in the UK with a
further 43 per cent believing that
professional and trade associations
could also play important roles.
-
Just over half of respondents (51 per cent)
believed that SMEs were unaware that UK law
enables UK courts to hear cases of bribery
and corruption even where the acts
complained of are committed abroad.
-
And when it comes to seeking advice and
guidance on bribery and corruption, 42 per
cent of respondents believed SMEs would turn
to their lawyer, 29 per cent to their
accountant and almost a fifth (19 per cent)
said they would turn to no one for advice.
John Davies, ACCA’s Head of Business Law,
said: "Bribery and corruption are ills which
are usually associated with business
dealings involving large companies and
public bodies and with particular sectors of
the economy. But clearly the competitive
pressures which can generate bribery and
corruption exist at the SME level too. It
must not be forgotten that SMEs make up the
great majority of all UK businesses."
He concluded: "SMEs may even be more
vulnerable to such practices because of
their isolated market position or lack of
in-house financial awareness. While our
survey does not suggest that concern about
bribery and corruption is a major day-to-day
preoccupation in the SME sector, it does
show that SMEs are certainly aware of the
risks of bribery and corruption and are keen
to improve their defences against them. But
knowledge gaps appear to be a significant
issue. The survey shows that accountants can
play a vital role in helping SMEs to do
this.
By being aware of the possibility of bribery
and corruption you can help prevent your
business being affected by it; and avoid the
fines and business damage that it could
cause at a later date..
|
