Canadian finance executives are some of the most trustworthy on the planet, according to a new fraud survey from global business management consultant company EY.
Only 4% of finance leaders in Canada say actions like extending monthly reporting periods, backdating contracts or booking revenue prematurely can be justifiable, particularly during an economic downturn. This is far below the 36% global average found in Ernst & Young’s Fraud Survey.
“Canada has always scored well in similar fraud surveys and this one is yet another indication that Canadian business leaders have a good understanding of what’s right and wrong in comparison to their counterparts from other countries around the world,” said Mike Savage, EY’s Fraud, Investigation and Dispute Services leader.
The survey tapped 2,800 senior executives in 62 countries across the planet, and Savage did note that one third of Canadians still believe bribery and corruption “happen widely” in businesses across Canada. Also 92% of Canadians believe prosecuting individual executives will help deter things like bribery, fraud and corruption, which is above the global average of respondents at 83%.
Canadian executives surveyed in the study also have low levels of loyalty (6%) when it comes to potentially whistleblowing on a company they work for, and that only 2% said loyalty would stop them from exposing corrupt practices at their place of work.
“A robust whistleblowing policy may be a surprisingly effective tool to combat unethical behaviour in Canada,” added Savage.
The survey also found that Canadians are trusting of other countries’ business practices. Approximately 44% of Canadian companies are doing less due diligence than last year on country-specific risks (36% global average) and 32% of Canadian companies are doing less due diligence than last year on industry-specific risks (27% global average).
“The survey confirms our experience that Canadian business supports ethical behaviour,” said Savage.
“More so than most other countries. But the results also show that there’s more to be done in this area, particularly as our business continue to expand abroad and operate in other countries.”
