One in five Canadian executives believe that corrupt practices including bribery happen regularly in this country, according to EY’s latest Global Fraud Survey.
The most common types of unethical behaviour cited were related to offering goods and other benefits, such as entertainment, gifts and cash payments, to win or retain business.
“That’s disturbingly high,” said Mike Savage, EY partner and Canadian fraud investigation and dispute services leader.
“Corruption interferes with fair competition for business. To overcome that, companies really need to create a culture where ethical behaviour is at the core of their operations – not just at home in Canada, but also at their overseas operations.
“They also need to encourage people to speak up if they think something isn’t right.”
The survey found that only 74% of Canadian companies have whistleblowing hotlines – considerably lower than in the United States (96%) and the United Kingdom (82%).
The report said there are many actions a company can take to address corruption and fraud in their companies. These include conducting internal audits of compliance and clearly defined procedures for dealing with reports of fraud.
“Organizations need to set the tone from the top that fraud and corruption are serious issues that won’t be tolerated,” says Savage. “Boards should be demanding that their organizations go beyond the basic building blocks.
“Without a company culture that demands transparency to minimize fraud and help prevent cybercrime, companies are putting their entire business on the line.”
