Some 30% of companies say they have lost out on an international business deal to a corrupt rival because they are too honest. And corruption is not only killing deals, it is deterring investors, according to a major annual survey, the Global Corruption Report 2015.
Of more than 800 senior legal and compliance professionals in companies operating across the world who were surveyed for the report, corruption has deterred 30% from investment deals in specific countries, and caused 41% to pull out of a deal.
However, more than one quarter of respondents said they would complain to the contract awarder if they felt they had lost out due to corruption—compared to just 8% of respondents in 2006.
One of the reasons for the combative mood among businesses is the existence of international anti-corruption legislation. More than half think these laws make it easier to operate in high-risk markets and 63% think they act as a deterrent for corrupt competitors. These figures were even higher in the emerging markets of Mexico, Indonesia, Brazil and Nigeria.
Richard Fenning, chief executive of consultancy Control Risks, which produced the survey, says that governments and companies across the world are increasingly aware of the importance of countering corruption, with China and Brazil in particular stepping up enforcement in the past year.
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