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Survey: Hungarian executives see widespread corruption, value transparency

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More than two-thirds of Hungarian executives participating in EY’s global survey said they believe corruption and bribery are widespread in the country, however, only 6% claimed it to be a daily practice to award contracts based on such practices, EY Hungary announced today, presenting the findings of its survey. Respondents also stressed the importance of transparency.

Based on interviews with 50 chief financial officers, chief compliance officers, heads of internal audit and heads of legal departments in Hungary, EY found that 34% would be willing to use personal gifts, 26% would offer entertainment and accommodation, 6% would offer cash and 2% would even falsify financial records to ensure the survival of their companies. 

While 56% of the executives said they would not apply unethical practices to meet monthly targets, 24% said they would extend their reporting period, 22% would be willing to modify inventories or ease product return policies, 14% would backdate contracts and 4% would book revenues earlier, the survey by EY found.

All executives agreed that transparency is especially important. All the respondents of the survey said it is important to know the real ownership structure of partner companies, in order to reduce corruption risks. Some 72% of the executives involved in the survey said that holding executives personally responsible for bribery and corruption cases would act as a deterrent.

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