16.05.08

Ernst & Young experts approached 1,186 directors and top managers of financial and legal departments of private businesses in 34 countries. Over 60% respondents appraised the problems posed by bribes and corruption as critical and very critical.

The data compiled in Russia in the meantime differed: national anti-corruption legislations are viewed as efficient by 85% Europeans and only 26% Russians. Fifty-four percent respondents from Russia admit on the other hand that effectiveness of anti-corruption laws increased over the last five years.

All respondents agree that whenever a company is accused of corruption, these accusations make the worst impact on investors.

Western businesses meanwhile care about their repute and clientele while Russian ones are only upset by the prospects of losing their suppliers. Caught red-handed, managers in Russia begin thinking in terms of their company's repute only when the company in question finds itself unable to expand its operations (they do not care for public opinion at all). Western companies fear fines more than their Russian counterparts (40% against 24%). On the other hand, the Russians fear imprisonment for corruption more than the Europeans do (38% against 23%). "In Russia, corruption risks are more personified than they are elsewhere," Ivan Ryutov of Ernst & Young said.

Where the war on corruption is concerned, the Russians count on businesses' own internal structures and divisions. Internal audit is viewed as a solution by 64% Russians and 46% Europeans, scrutiny of business deals in advance by 44% and 12%. (And yet, only 46% Russians appraise performance of internal audit divisions as adequate.) Top managers in Europe on the other hand count on preventive measures: 59% suggest an emphasis on better work with personnel...

"Practically all Russian businesses are involved in corruption relations. As things stand, availability of the administrative resource is the best criterion of success in business," National Anti-Corruption Committee Chairman Kirill Kabanov said. Worse than that, businesses themselves are not fully aware of the corruption risks.

"As a matter of fact, it is the authorities' success in doing away with corruption that may be taken by the Russian business community as a risk, because it will make a great deal of problems quite unsolvable," Nikolai Freitak of AGA Management said. "Low quality of state services and loopholes and shortcomings in the acting legislation as sources of corruption are not something that may be altered overnight."

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Source: RBK Daily