Emerging markets have experienced significant change and burgeoning development over the last five years, becoming economic powerhouses and stimulating global growth. However, changing regulations and increased enforcement are altering the risk landscape. Organizations must face these challenges head-on: while emerging markets offer immense promise and abundant opportunities, the ever-present risks of fraud, bribery and corruption present potential obstacles to growth.
EY’s Emerging markets report, Integrity in the spotlight 2018 highlights that the perceived level of bribery and corruption in emerging markets, including India has continued to be double that of developed markets since 2012. This is despite increased regulation, enforcement action and compliance efforts across the region.
In many countries, cultural traditions such as wining and dining and the provision of high-value gifts and entertainment are considered integral to doing business. Emerging markets, seeking to gain a commercial advantage through offering prospects or clients lavish corporate hospitality ahead of an important deal or contract makes a company — and its executives — potentially liable under anti-corruption legislation.
Download the full report here: https://fraudsurveys.ey.com/