NAIROBI, Kenya, Apr 5 – Corruption practices are thriving well in the private sector.
This is according to a survey conducted by EY where 51 percent of respondents say bribery and corruption are widespread in the sector.
The ‘Human instinct or Machine logic’ report reveals that bribery and corruption cases are higher in Africa at 77 percent, compared to other regions included in the survey which rank lower.
The study surveyed 4,100 employees from large businesses in 41 countries across Europe, the Middle East, India and Africa.
In Kenya, 79 percent of those surveyed said they perceive corruption to be well present in businesses with 76 percent of them saying prosecution of those found in fraud would curb the vice.
“Kenyans seem to have faith in regulatory activity seeing that 68 percent of respondents saying it has positive impact on companies. Nigerians and Jordanians follow respectively at 82 and 75 percent,” EY East Africa Fraud Investigation and Dispute Services leader Dennis Muchiri said.
The survey points a finger at Senior Management who are seen to either turn a blind eye or actively engage in most fraud and corruption practices.
According to the study, 77 percent of those in senior positions sampled in the study said they would be willing to justify some form of unethical behaviour to help a business survive, with one in three willing to offer cash payments to win or retain business.
But corruption and bribery are not a big deal, especially among General Y cohort.
According to the study, 32 percent have a relaxed attitude towards the vice, 73 percent think it’s justified.
“With 73 percent of respondents from Generation Y holding the view that unethical action can be justified to help a business survive, it is imperative to pay attention to this younger generation, since they are the future of businesses,” says Muchiri.
Reporting of malpractices as many employees fear for their jobs.
“In Kenyan at 51 percent, fear for personal safety and concerns about the future career progression within a company were reported as the leading hindrances to reporting an incident of fraud, bribery and corruption. The same views are observed across the continent.”