A global risk consultancy, Control Risk, recently released the results of their Annual Corruption Survey which makes for interesting reading.
George Nicholls, senior managing director of Control Risks Southern Africa, “Too many businesses are losing out on good opportunities to corrupt competitors, or choosing not to take a risk on an investment or entering a new market in the first place for fear of encountering corrupt practices.”
Key findings of the Annual Corruption survey include:
- 61% of South African companies indicated that they have already pulled out of a deal at least once due to the risk of corruption.
- 85% of South African businesses indicated that they are in favour of strong anti-corruption laws and believe that these laws improve the business environment for all parties.
- 55% of South African companies surveyed stated that they avoid certain countries if the corruption risk is perceived to be too high.
- 54% of South African companies have procedures in place for corruption risk assessment.
- 57% have a standard procedure for integrity due diligence for business partners.
- 34% of respondents from Africa reported losing out on deals due to corrupt competitors.
- 70% of South African companies said they would complain if they felt they had lost out due to corruption.
- 60% of South African companies also said they would try to gather evidence for legal action.
Dale Horne, operations director of Whistle Blowers (Pty) Ltd added; “Based on our statistics, corruption does not only affect large companies but smaller companies as well. We have, however, seen an increase in companies becoming more and more proactive in promoting ethics and honesty in their organisations. Companies are starting to take a stand against fraud and corruption, not only in South Africa, but also on a global scale.”