The firm’s biennial Europe, Middle East, India and Africa Fraud Survey, based on a poll of 4,100 employees from large businesses in 41 countries, including 100 respondents from the UK, shows that the perception of UK respondents is that not much has changed since the previous 2015 report.

Only 24% of UK respondents have frequently heard their senior management communicate about the importance of maintaining ethical standards in business, and only 29% of UK respondents felt that action has been taken by their company against an employee for breaching ethical standards or regulation, compared to 43% in EMEIA.

Half (42%) of UK respondents believe that their senior management would act unethically to help a business survive, compared to 58% in EMEIA, and 12% said they believed their managers would offer a cash payment and that 16% would offer personal gifts to win or retain business.

Jonathan Middup, partner at EY fraud investigation and dispute services said: ‘Bribery and corruption is still perceived to be a prevalent issue in the UK, despite increased focus and scrutiny from the government and regulators. The picture we are seeing from the survey and in our conversations with clients is that while many companies may think they have an effective compliance framework in place, in reality some are struggling to create a culture where it is in employees’ interests to do the right thing.’ 

EY found that while 37% of UK respondents are aware of whistleblowing hotlines, a significant number of respondents stated they would not report unethical behaviour due to concerns about future career progression within their company (54%) or fear for personal safety (33%). 

Middup said: ‘Many employees are unaware of the correct channels to report wrongdoing but perhaps more worryingly, it’s clear that some also feel under pressure to withhold information. Companies need to actively start fostering a culture whereby employees feel encouraged to come forward to report misconduct and that they will be protected if they do.’

UK respondents also showed discomfort with their company’s use of technology to monitor data sources to reduce fraud and corruption risk. Only 7% felt their company should monitor their instant messenger accounts, while 2% felt it should monitor their social media profiles, the lowest of all countries surveyed.

However, EY points out that overall the proportion of UK respondents who said bribery and corruption is a problem, is significantly lower than in some other countries, with 51% of all respondents across EMEIA reporting that bribery and corruption is widespread in their country.

EY’s report, entitled ‘Human instinct or machine logic – which do you trust most in the fight against fraud and corruption?’ is here.