By Adam Decker, Marketing −
A recent survey by a London financial company produced some very surprising conclusions regarding international fraud. If proven correct, these conclusions could spell great difficulty for governments in coming years.
Ernst & Young’s (EY) Global Fraud Survey revealed that anti-corruption compliance, the cooperation of companies with national and international anti-corruption policies, may be “running out of steam.”
The Benefits of Anti-Corruption Enforcement
A global movement which includes the U.S. has spurred many countries to take part in anti-corruption enforcement. This participation benefits countries in several ways.
First, the eradication of corruption leads to greater transparency and more ethical practices in organizations. This in turn leads to improvements in the economy and in the care of the poor and disadvantaged.
Second, the governments involved enjoy revenue growth from the large fines associated with non-compliance.
Weak Anti-Corruption Policies
The survey from EY offered other surprising results. It reported that 10 percent of C-level officials, the highest-level executives in senior management, admitted to being asked for bribe money over the course of their career.
This survey also showed that 80 percent of companies had incorporated anti-corruption compliance programs and codes of conduct. Unfortunately, C-level officials often do not attend the trainings as much as they should, meaning that many companies appear to comply, but maintain willful ignorance about the policies.
In fact, many companies do not include C-level executives as part of their risk assessment. This may cause issues later when such executives handle transactions involving millions of dollars. Any misconduct could have disastrous results, as it carries enormous fines and lost trust with business partners.
It’s Time to Take a Stand
Compliance professionals must recognize these problems and take action to counteract them. They must do full risk assessments of the organization, and executives must be asked to attend compliance training.
Compliance fatigue should not exist. It is merely the complaint of companies that have suddenly had their leash shortened. In time, the complaints may fade, and fatigue can be turned into solid ethics and compliance for companies around the world.
This process will be difficult and officials will need powerful tools to enforce compliance.
EyeDetect™ is a powerful polygraph alternative that could be key in discovering officials that participate in corrupt activities. Its non-intrusive examination monitors eye movement as examinees answer true or false questions. EyeDetect boasts 85 percent accuracy in lie detection and could help to bring greater transparency to anti-corruption assessment.