One fifth of Canadian executives describe businesses and large corporations as “highly corrupt.” Bribery, manipulation, and deception in business are a problem, and Canadians are becoming increasingly aware of it, the Ernst & Young survey continues.
“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,” Fraud Investigation Leader, Mike Savage, said. “They also need to encourage people to speak up if they think something isn’t right.” Twelve percent of Canadian firms report “significant fraud” in the past two years. Companies are also highly unlikely to report breaches of security, with up to 74% of businesses all over the world admitting that they generally do not inform the public.
What is the good news, if any? According to Savage, perceptions of fraud and corruption are likely skewed. News coverage of high profile cases likely leads Canadian businessmen and women to believe there are heightened or exaggerated levels of corruption. Other crime affecting businesses, including data breaches and break-ins, are at an all-time low. This is welcome news, especially given the costly nature of physical break-ins. (Homeowners spend $14 billion annually, replacing stolen items, fixing home damages, and paying any burglary-related medical bills.)