Inconsistency and ambiguity in encouraging high ethical standards and insufficient understanding of compliance programs have increasingly led employees to justify unethical behaviour at the workplace states EY’s Asia-Pacific (APAC) Fraud Survey, Economic uncertainty or Unethical conduct: How should over-burdened compliance functions respond? The survey highlighted that ethical leadership has emerged worrisome in India and China alike, with 57% stating that senior management tend to overlook dubious actions of employees to attain corporate targets. Fifty eight percent of Indian respondents are still willing to work for organizations involved in major bribery or fraud case, lower than China (66%) but higher than the average of other APAC nations (49%). Sixty percent of Indian respondents also stated that organizations are reporting financial performance better than it is.
The prevalence of fraud and corrupt practices and gaps in demonstrating principled leadership by senior management can become a hindrance in organizations’ quest to build compliant workplaces and retain talent. Businesses in emerging economies such as India will need to rethink their approach toward corporate governance, take action against individual misconduct and reinforce commitment to make compliance programs more visible, resilient and technologically-led.
Download the full report here: EY APAC Fraud Survey 2017