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Australian companies exposed to offshore corruption
The number of ASX200 companies exposed to offshore bribery and corruption risk has increased over recent years, according to research commissioned by the Australian Council of Superannuation Investors (ACSI).
The research, produced by Corporate Analysis Enhance Responsibility (CAER), found that 126 of the companies in the ASX200 are exposed to bribery and corruption in their international operations. Furthermore, 40 per cent of those 126 companies have no public policy in place that prohibits bribery or 'facilitation' payments.
The companies in the ASX100 also lag the top 100 companies in the US, UK and Europe when it comes to putting into place policies that prohibit corrupt activities.
ACSI chief executive Ann Byrne said bribery and corruption erode stakeholder relationships, reinforce illegitimate trade flows and hurt competition.
"Whilst this challenging issue is often put in the 'too hard' basket, investors can play a role in paving new pathways to ensure responsible business. ACSI hopes that this research will serve as a useful starting point for investors to explore what that pathway might look like," Byrne said.
The research also found that the number of companies operating in sectors or countries that were deemed 'high risk' had increased from 56 per cent in 2006 to 75 per cent in 2011.
"Based on current research, it appears that the likelihood of an ASX200 company with international operations, no stated anti bribery policy, and/or inadequate anti-bribery management controls becoming embroiled in another high profile scandal are significant," concluded the CAER report.
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