The new ACCA report, Bribery and Corruption: The Hidden Social Evil on Your Doorstep, investigates the profound impact of bribery and corruption on SMEs worldwide, underscoring the urgent need for greater transparency and stronger regulatory frameworks.
The research reveals a high prevalence of bribery and corruption, with 63% of SMEs and their advisers believing that resisting such practices could result in lost business or opportunities. Despite these concerns, there is a strong recognition of the benefits of standing up to corruption: 68% agree that a robust anti-bribery policy enhances customer confidence, and 83% believe it improves their chances of securing lucrative contracts with major corporations and public sector entities.
Jason Piper, ACCA’s Head of Tax and Business Law, stated, “Corruption is a poison; it distorts markets, stunts economic growth, and deters investment. Many very small businesses lack the bargaining power to refuse when small bribes are demanded. Entrepreneurs often face the tough choice between paying the bribe or losing their business, a choice that is particularly harsh for those trying to support their families.”
“Our report aims to equip businesses and regulators with the insights and tools needed to combat corruption and foster an environment of transparency and trust. This includes leveraging the latest digital tools. Just as technology is used by criminals, regulators and enforcement agencies should adopt it to detect, prevent, and respond to corruption.”
Andrew Lim, Portfolio Head, ACCA Maritime Southeast Asia, added, “Bribery and corruption remain significant challenges for SMEs in Malaysia and the Asia Pacific region. It is essential for businesses to maintain their integrity while competing in a challenging market. By promoting transparency and ethical conduct, SMEs can overcome these obstacles and build a more resilient and equitable business environment.”
The report draws on extensive global data, expert opinions, and real-world case studies to examine the multifaceted impacts of corrupt practices on SMEs and economic development. It highlights the severe consequences businesses can face, including legal penalties and significant damage to their reputations.
Additionally, the report evaluates the effectiveness of current anti-corruption laws and policies across various countries, noting that while progress has been made, much work remains to align international efforts.
Piper emphasized, “As global markets become increasingly interconnected, the need for accountability and ethical business practices is more critical than ever.”
ACCA hopes this report will act as a catalyst for change, encouraging organizations across all sectors to evaluate their practices and adhere to the highest standards of business conduct.
The report is highly recommended for business leaders, policymakers, and regulatory bodies worldwide committed to eradicating corruption and fostering a fairer business environment.
Read the report here.
