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Deloitte has warned of a potential spike in bribery cases for businesses across Australia and New Zealand, saying the threat of corruption has increased for companies, their workforces and executives.
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Ethics to be ‘well and truly tested’ amid COVID-19 pandemic, says Deloitte
27 March 2020
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In launching its biennial Bribery and Corruption Report 2020, Deloitte has warned that the “unique and intense” commercial pressures of the coronavirus outbreak have increased the threat of bribery and corruption.
Deloitte forensic director Oliver May said the anxiety and uncertainty brought about by the coronavirus may well trigger an increase in risky behaviour.
“As the threat to livelihoods accelerates, so do the vulnerabilities to dishonesty,” Mr May said.
“Fraudsters, cyber criminals, organised crime groups and corrupt individuals will test your organisation’s commitment to integrity.
“Employers need to support their people, organisations and the wider community by making sure they have anti-bribery policies and programs in place.”
With the government’s $84 billion economic stimulus package now in place, the tax profession has been urged to ensure that only those who are legitimately entitled receive the support payments.
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The report, which surveyed “Australasian risk leaders”, found that 5 per cent of Australian organisations have unclear approaches to bribery where “no tolerance” is not specified.
Additionally, the report noted that 51 per cent of respondents had not conducted a bribery and corruption risk assessment.
Deloitte Asia-Pacific managing partner, forensic, Chris Noble encouraged business leaders across Australasia to recognise this time as one where ethics will be “well and truly tested”.
“Clear, confident, unequivocal communication is so important to ensure the sustainability of your business and protect its reputation,” Mr Noble said.
“The decisions leaders make now will affect their organisations long after the crisis has passed.
“The reality is that the 2020 Deloitte Australia and New Zealand bribery and corruption survey leaves no doubt that Australia’s reputation has slipped over the last two years.”
Mr May noted that, since many of the respondents were from Australia and New Zealand and operated supply chains across the Asia-Pacific region, it was important for companies to understand the corruption risks that can manifest across the many cultures.
According to the report, risk sensing is a key to assisting organisations operating in the Asia-Pacific region.
“Moving away from a ‘best guess’ estimate to carefully examining operations and shoring up the gaps is important,” Mr May said.
“More informed due diligence assisted by new data analytics technologies will help organisations be more confident as they navigate their supply chains and markets.
“Australasian organisations need to seize the opportunity to gain early warning of incidents and better understand their increasing risk indicators.”
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