A majority of accountants in the Caribbean believe that the risk of encountering bribery amounts to a major concern for small and medium-sized businesses and 60 per cent see it as impacting negatively on the regional business environment.
The report Combatting Bribery in the SME Sector was conducted by ACCA amongst 1000 of its global members. The findings reveal a concern that many SMEs are not taking the right steps to mitigate the risks of exposure to bribery and corruption. It also suggests that many businesses have been willing to mis-state financial statements to cover up for bribery and corruption and that this tendency has been exacerbated by the global financial crisis.
Brenda Lee Tang, head of ACCA Caribbean comments: "There is a consensus amongst respondents that bribery and corruption damages a business's reputation and makes it harder to attract investment. The big question for accountants here in the Caribbean is how do we tackle bribery and corruption?"The research respondents said the most effective methods would be whistle blowing laws and more high profile prosecutions."Key findings for the Caribbean show that:
�2 63 per cent of Caribbean respondents say there is not enough help for SMEs in identifying and dealing with bribery and corruption, a sentiment shared by many around the world.
�2 57 per cent do not think that anti-bribery laws should incorporate a modified regime for SMEs, a sentiment shared with respondents in Central and Eastern Europe and Sub Saharan Africa.
�2 61 per cent believe bribery and corruption is a concern for SMEs, one of the highest global scores, compared to only 22 per cent in the UK
In the foreword to the report, Professor Mark Pieth, chairman of the OECD's Working Group on Bribery and International Business Transactions says more can be achieved to tackle bribery and corruption."To date, 306 companies and individuals have been sanctioned under criminal proceedings for foreign bribery since 1999. At least 83 of the sanctioned individuals were sentenced to prison.
"One company faced combined sanctions of �1.24bn for foreign bribery. However, sanctions have only been handed down in 13 of the 40 Convention countries. More can be done," he said.Lee Tang concludes: "This report has a clear message for accountants, SMEs and the government here in the Caribbean."The full restoration of trust and confidence in the business sector can only be achieved when people believe that business is being conducted fairly and transparently.
"By adopting a values-based approach, businesses can help themselves and, indirectly, help to achieve the wider goal of enhancing confidence in the business sector as a whole."Accountants, who have twin responsibilities to give best advice to their employers or clients and an obligation to act in the public interest, have a major part to play in this process."