Corporate leaders aware of corruption, do little about it, says survey
Although the number of Hungarian firms regularly assessing operational risks has grown slightly, 60% of them still do not make efforts to uncover corruption risks and possible mismanagement, according to the results of a survey by professional services firm EY Hungary and the Institute for Economic and Enterprise Research (MKIK GVI), announced Wednesday.
According to the survey, which interviewed leaders, managers and owners of 300 companies with at least HUF 250 million revenues operating in Hungary, local company heads still have controversial feelings about corruption. Some 54% of the questioned leaders said they believe corruption takes place in Hungarian business life, but that their companies are not involved in such cases, while 12% said they would accept or consider a corrupt offer. At the same time, 94% of the surveyed leaders said that no ethical breaches have taken place at their companies in the past five years.
Pinpointing a positive change in practices, EY notes that currently 54% of the surveyed Hungarian companies have a code of ethics, a 20% improvement compared to last year’s results.
“Based on our experiences, while a code of ethics is a rapid tool to be established for preventing mismanagement in a company, without a control environment and continuous communication, it cannot be a miracle alone,” said Lívia Fábián, a senior manager in Fraud Investigation & Dispute Services at EY Hungary.
Some 61.3% of the questioned leaders said they trust their employees without controls in terms of not leaking confidential business information, the survey shows.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.