Image by otrocalpe via FlickrLast week Ernst & Young released their European Fraud Survey 2009 - a fascinating and disturbing (they called it "startling") report. I'd strongly recommend any readers with European operations to download a copy, as it highlights a number of key problems, including a shockingly high tolerance for unethical behavior and a serious lack of confidence in senior management and board members.
The survey was conducted in January and February with a total of 2,246 interviews with employees in 22 European countries - all participants were employed with companies with over 1,000 employees, stock exchange-listed or multinationals.
Here are just a few nuggets I pulled:
- 55% of respondents expect corporate fraud to increase over the next few years
- 29% believe management to be untrustworthy
- 42% believe that the senior ranks in an organization pose the biggest threat of fraud.
- 25% thought it was acceptable to make case payments to win new business (potential FCPA violations!)
- At a country level, only 12% from Italy or France believed their management always operated with a high level of personal integrity (my ancestral home of the Czech Republic didn't fare much better at 13%)