As organizations transition from managing the Covid-19 crisis toward building economic resilience, many are struggling to maintain integrity standards according to the EY Global Integrity Report. The report reveals that 63 percent of respondents believe businesses operating in emerging markets are more likely to be adversely impacted by the current disruption. This is higher in India where close to 82 percent of respondents echo the sentiment.
Regulatory scrutiny and remote working as a result of the pandemic are aggravating these issues. 32 percent of respondents in emerging markets believe that bribery and corrupt practices present the greatest risk to the long-term success of their businesses, compared with 25 percent in India. A 30 percent of respondents believe that the risk of a cyber and ransomware attack is a significant threat, compared to 41 percent in India.
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Arpinder Singh, Partner and Head — India and Emerging Markets, Forensic & Integrity Services, EY said, "As organizations navigate the crisis and prepare for a 'Great Reset', corporate revival and recovery efforts should not get derailed by fraud, bribery corruption risks".
Bribery and corrupt practices present the greatest risk. Pixabay
The report highlights that 55 percent of respondents in emerging markets say their management frequently communicates the importance of operating with integrity, compared with only 39 percent in developed markets. This proportion varies significantly by country from just 25 percent in UAE, rising to 53 percent in Malaysia, and 66 percent in India.
A 37 percent of respondents in emerging markets say they haven't reported concerns about integrity due to apprehensions about their career progression. Worryingly, nearly 3 in 10 kept their concerns private out of fear for their own personal safety. In India, 49 percent of respondents were uneasy to report such concerns. Remote working, restricted operations, and limited mobility in many locations have also made it riskier to manage third-party relationships.
Only 35 percent of businesses in emerging markets are very confident that their third-party partners operate with integrity, compared with 56 percent of respondents from India. (IANS/SP)