The 15th global fraud survey, from EY, casts a harsh spotlight on integrity.
Despite more laws and more enforcement worldwide, including unprecedented fines, fraud and corruption have not declined globally since 2014. Indeed, as management has upped the ante on awareness and compliance, the outlook for businesses, which view this as one of their greatest risks, is worrisome. “We do not see a corresponding decrease in unethical conduct and business failures,” EY concludes, offering a few possible reasons. One is the lag between new laws and real change. Another is the impact of digital transformation, which is churning up new risks. The rising millennial tide may also be having an impact. “It appears that our younger respondents are more likely to justify fraud or corruption,” EY says. Finally, as the chart to the right shows, employees at many businesses are unclear on where the integrity buck stops. One thing, however, is clear: Very few respondents – less than 1 in 4 – believe individuals have any responsibility for integrity.
See the full report at ey.com/fraudsurveys/global.
Published January 11, 2019.
