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SMEs 'not ready to deal with bribery'

Published On 23 April 2007 at 09:15:39

Small and medium-sized enterprises (SMEs) in the UK have difficulty distinguishing between bribery and corporate hospitality, a report suggests.

According to the Association of Chartered Certified Accountants (Acca), 69 per cent of SMEs thought that they were likely to be faced with bribery and corruption while doing business, but fewer than half believed that SMEs fully understood the laws covering this area.

Similarly, just 46 per cent of respondents thought that SMEs could easily distinguish between contract-related consultancy or facilitation fees and bribery and corruption.

Two thirds (62 per cent) thought that they were not offered enough guidance to help them deal with these issues.

"Bribery and corruption are ills which are usually associated with business dealings involving large companies and public bodies and with particular sectors of the economy," said John Davies, Acca's head of business law.

"But clearly the competitive pressures which can generate bribery and corruption exist at the SME level too. It must not be forgotten that SMEs make up the great majority of all UK businesses."

Recently, the Federation of Small Businesses warned that crimes against SMEs cost businesses £19 billion every year and account for 20 per cent of all UK crime.

 

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