Wednesday 24 May 2017

Bosses in the dock over failure to prevent fraud

Sarah Stack

Sarah Stack

Eight out of 10 workers think senior management should face criminal charges for failing to prevent fraud, bribery or corruption in their organisation.

A third of workers claimed to have seen colleagues who have engaged in fraudulent activity promoted, while a quarter do not trust management to implement corporate fraud policies with integrity.



However the Ernst & Young European Fraud survey also revealed Irish businesses are among the most proactive across in the EU of increasing fraud detection devices.



Figures show just 16pc were victim to incidence of serious fraud over a year, compared to more than 30pc in the previous 12 months.



But the accountancy firm warned several gaps still exist.



Julie Fenton, fraud investigation and disputes partner, said: "What's clear is that despite more widespread introduction of corporate fraud policy, there remains much work to be done by business leaders to clearly articulate how such anti-fraud policies translate into acceptable day-to-day business behaviour.



"This includes clearly communicating what is acceptable and what is not, the consequences for employees who do not adhere to these rules and regulations and following through on disciplinary procedures when breeches occur."



More than 1,400 interviews were carried out across 36 countries for the survey, conducted between November 2009 and February 2010.



It revealed over a quarter of all senior managers and a third of employees across Europe believed offering personal gifts, free entertainment and even cash payments was acceptable in order to win or retain new business.



Nearly half are not aware of an anti-bribery policy at their company and 40pc said the problem has worsened over the last two years of economic downturn.

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