Majority of Hong Kong business leaders comfortable with ‘unethical’ practices, survey shows
The survey of more than 3,000 businesses found 72 per cent of HK business leaders could ‘justify’ such conduct for the survival of their companies
The grim economic picture is prompting more Hong Kong business leaders to justify using unethical behaviour to help their companies survive or meet financial targets, a survey has shown.
Research conducted by accounting firm EY last year on more than 3,000 businesses in 62 countries found Hong Kong respondents were more tolerant of unethical behaviour than their global peers, with 72 per cent saying they could justify such conduct for the survival of their companies in an economic downturn. This was significantly higher than the average of 36 per cent recorded globally.
Some 64 per cent of local business leaders said they would also justify unethical conduct to meet financial targets, but only 42 per cent of global respondents agreed.
“The current economic downturn is certainly increasing the pressure on management,” Chris Fordham, managing partner of EY Fraud Investigation and Dispute Services told the Post.
He said many global companies had pinned high hopes on Asia – the growth engine in the past decade – expecting the management sitting in Hong Kong offices could continue to lift companies’ global performance – despite a slowing Chinese economy growing at its slowest pace in a quarter of a century.
Fordham warned companies should be more “vigilant” in the economic downturn, as the city’s regulators showed no signs of relaxing their enforcement. “This is not a time to reduce resources on compliance,” he added.
The survey also found Hong Kong business leaders were more reluctant to report fraud, bribery and corruption – for the sake of their companies and colleagues.
Some 30 per cent of local respondents believed loyalty to their companies and colleagues was a deterrent to reporting unethical practises, where less than 20 per cent of the other global leaders thought agreed.