Opinion | Anti-corruption campaign leading to rise in awareness
Kroll survey shows that one in five companies operating in China feels vulnerable to graft
The mainland's new political leaders have been very keen to crack down on corruption, but a global study on fraud shows these measures have yet to make their mark.
Global risk consultancy Kroll, in its annual global survey, found 20 per cent of companies operating on the mainland felt highly vulnerable to corruption, up more than three times from 6.3 per cent last year. But this is lower than the 30 per cent reported in 2011.
Kroll this year surveyed 901 companies in different industries worldwide, including those in the United States, Europe, Asia, Africa and Middle East. The report included 61 companies operating in China.
Companies operating in China also experienced an increase in the number of conflict-of-interest cases, with 21.3 per cent of respondents saying they faced such issues this year, up almost 10 times from the 2.1 per cent last year.
The finding suggests that corruption and conflict-of-interest issues are becoming worse, but Colum Bancroft, the managing director for financial investigations at Kroll in Hong Kong, says this may not necessarily be the case.
It could be more a question of increased awareness, which is a positive development in helping to combat such activities, Bancroft says.
"Since China has stepped up efforts to crack down on corruption this year, it has brought awareness of corruption and conflict-of-interest issues. This is why the respondents may feel increased vulnerability to these cases," he says.
