Bribery costing business billions

Bribery costing business billions

Fraud and bribery costing billions of pounds is affecting up to 80% of business deals outside Europe and the US, according to Andrew Kakabadse, a professor of international management and corporate advisor on leadership and ethical business.

Professor Kakabadse explains: “Corruption is rife and getting worse in high-growth export markets promoted by both the Foreign Office and Downing Street.
“In two-thirds of the world, business can’t be done unless a bribe is handed over. Brazil, Russia, India, China, Mexico, South Africa and Indonesia are all hotspots for financial ‘incentives.’ In Turkey, Greece, most of South America and across many Asian countries, some sort of ‘transactional cost’ is likely to be incurred.
An assessment by Kakabadse indicates a steady increase over 2012 of routine demands for cash and favours, before contracts are agreed by politicians, civil servants, business leaders and other middlemen.

Corruption is rife and getting worse

‘A sharp rise in international corruption and bribery is damaging business the world over’

Kakabadse continues: “A sharp rise in international corruption and bribery is damaging business the world over. Not only are companies and economies suffering as a result, but the UK Government is encouraging investment in high-export markets where demand for back-handers has become commonplace.

“Companies need to train, review and isolate senior managers who hold front line positions negotiating with government officials, politicians and middlemen. Ambitious sales targets combined with a lack of risk analysis leaves corporations open to charges of unacceptable and corrupt practice”.

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