Russian Firms Fare Worst in Bribery Index
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Russian businesses, which collectively put in billions of dollars in foreign investment last year, are most likely to offer bribes and kickbacks in commercial deals abroad, according to Transparency International’s latest Bribe-Payers Index.
Related: World Corruption Special Report
Russian businesses, which collectively put in billions of dollars in foreign investment last year, are most likely to offer bribes and kickbacks in commercial deals abroad, according to Transparency International’s latest Bribe-Payers Index.
Related: World Corruption Special Report
The 2011 Bribe-Payers Index surveyed 3,000 business executives about their perceptions of the likelihood of bribes being paid by companies from different countries, with 10 signifying “never” and zero signifying “always.” Swiss and Dutch companies scored best, with 8.8 each, while China with a score of 6.5, and Russia with 6.1, came at the bottom of the 28 countries.
The countries and territories ranked in the Index cover all regions of the world and represent almost 80 per cent of the total world outflow of goods, services and investments.
Related: Corruption Perceptions Index Rank and Score
Elena Panfilova, director of the Center for Anti-Corruption Research and Initiative Transparency International Russia, is quoted in the report as saying that “Unfortunately, as far as the spread of corruption is concerned, there are no islands of integrity in Russian public and business life.”
“We export technology, oil, wood. And we also export this,” Panfilova said.
However, she also added that there’s some hope of results from the “strict enforcement of new national anti-corruption legislation and compliance with international commitments.”
China was the only other country that scored below 7, with a 6.5 ranking.
“It is of particular concern that China and Russia are at the bottom of the index,” said Transparency International in its report.
[quote]Given the increasing global presence of businesses from the countries, bribery and corruption are likely to have a substantial impact on societies in which they operate and on the ability of companies to compete fairly in these markets.[/quote]The survey reported the widespread practice of companies paying bribes to win public tenders, avoid regulations, influence policy and expedite government processes. Public works and construction, along with the oil and gas industry, were seen as the sectors most prone to bribery, the report found.
Even more common was the practice of business-to-business bribes, according to the report.
“This suggests that corruption is not only a concern for the public sector, but for the business sector as well, carrying major reputational and financial risks for the companies involved,” the organization said.
No country was totally untainted, but some were better than others. The U.S. was placed as the 10th country least likely to bribe, behind Australia and Canada, which tied for sixth place, and Singapore and Britain, which shared eighth place as the least likely to engage in kickback practices.
Related: Freedom from Corruption
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