Middle managers admit to ignorance over Bribery Act

Only half of those who have heard of the Act believe they have been given adequate training to ensure compliance.

Meanwhile a quarter of those surveyed confessed to being aware of unethical activity at their company.

Ernst & Young, which carried out the survey of 1,000 UK middle managers, said it indicates a lack of preparation by many organisations.

It also said it shows confusion about the Act, which to date has only seen one minor prosecution involving a local court clerk.

The Act was introduced last July to provide businesses in the UK with a clear legal framework to combat bribery, domestically and internationally.

Breach of the Act could carry a jail sentence for directors of up to 10 years and unlimited fines.

Despite stricter bribery laws, more than half of UK executives would not rule out unethical activities to survive a downturn according to Ernst & Young’s 2012 Global Fraud Survey.

Findings revealed that those who would be happy to provide personal gifts to secure business almost doubled in two years.

A few even said they would give cash payments to win or retain business during the downturn.

Ernst & Young said UK companies have shown weakness in punishing bribery and corruption. Only 24 per cent have taken any action compared to 40 per cent globally.

Only a quarter of executives consider that UK enforcers are willing to prosecute cases of bribery and corruption and are effective in securing convictions.

Victoria Spencer, Yorkshire fraud investigations leader at Ernst & Young, said: “It is alarming to see that the overwhelming majority of those at managerial level are still unaware of the Bribery Act, given that it is applicable to all UK businesses and came into force a year ago. The lack of reported cases may have lulled organisations into a false sense of security.

“Either they are underestimating bribery risk, do not feel sufficiently educated to give their staff adequate guidance, or they are failing to see the urgency in ensuring that their organisations are Bribery Act compliant.

“The survey results should serve as a stark warning to firms that they should ramp up their compliance procedures to ensure that clear anti-bribery policies are in place.”