Irish business executives admit ineffective anti-corruption measures

Almost two-thirds of board-level executives in Irish businesses say their anti-bribery and anti-corruption policies are ineffective, according to a new report.

International firm Eversheds engaged with 500 board-level executives in large organisations across 12 countries - including 20 in Ireland - to produce the Beneath the Surface report.

The full report also shows that 75 per cent of Irish executives said they had uncovered corrupt business practices in their organisation, despite anti-bribery laws now being prevalent across the world and an increased focus by prosecutors to bring charges.

One in five (20 per cent) admit their business does not conduct specific anti-bribery due diligence as part of M&A activity.

Neil O’Mahony, partner at Eversheds Ireland, said: “The Eversheds International survey was conducted ahead of a UK government-led international anti-corruption summit in London this week – which seeks to galvanise a global response to tackle corruption.

“It’s clear from the survey that bribery remains a problem, including in Ireland. Businesses do understand the seriousness of bribery and corruption and the potentially devastating impact of a public investigation on their bottom line and their reputation.”

He added: “If businesses can identify questionable practices in their organisation early, it can make the difference between facing a prosecution or not, so the incentive to get on the front foot is significant.”

Of the board members who identified bribery or corruption in their organisation, one third took the decision to self-report to law enforcement agencies and 20 per cent informed the regulator.

Irish executives revealed an overwhelming willingness to self-report, with all of those questioned stating they would self-report to law enforcement or regulators if they discovered bribery or corruption in their organisation tomorrow.

Mr O’Mahony said: “Incentives for self-reporting are becoming a more familiar feature of regulatory regimes, and a growing use of deferred prosecution arrangements, regulators and law enforcement agencies is encouraging a climate of greater transparency and openness. However, the pace of regulatory change makes it difficult for multinational businesses to understand how their position changes from country to country.

“Bribery and corruption are undoubtedly challenging issues for organisations to deal with, but they shouldn’t be holding businesses back. The reality is that corrupt business practices will always occur, particularly in high risk jurisdictions. What matters is the way an organisation responds and how prepared it is to effectively mitigate the risk it poses to their business.”