SMEs 'at risk from bribery and corruption'

News Article - 24 May 2012
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Small and medium-sized enterprises (SMEs) are just as likely to fall victim to incidents of bribery and corruption as larger companies, a study has shown.

According to research conducted by the Association of Chartered Certified Accountants, more than two-thirds of those questioned in the survey said they SMEs would face some incident of corruption or bribery during their working lives, reports Accountancy Magazine.

However, more than half said that they did not understand the laws relating to the issue.

Some 64 per cent of respondents felt that bribery and corruption could manifest themselves as products of supply chain pressure, while 63 per cent said they thought that cross-border dealings could also be affected.

John Davies, the organisation's head of business law, said: "Bribery and corruption are ills which are usually associated with business dealings involving large companies and public bodies and with particular sectors of the economy.

"But clearly, the competitive pressures which can generate bribery and corruption exist at the SME level too."

He added that businesses should not forget that SMEs account for the majority of all companies in the UK.

According to the Financial Times, the US is currently trying to change the economics of global corruption, after decades of bribery being one of the costs of doing business.

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