Just 6 percent of British firms polled thought that the Bribery Act had harmed their business
LONON (TrustLaw) – Widespread fears that the UK Bribery Act would affect the ability of British companies to do business abroad appear to be largely unfounded, according to a survey by global professional services firm Ernst & Young.
Ernst & Young polled over 400 company executives across a range of UK companies and found that just 6 percent of them believed that the six-month-old anti-bribery law had harmed their business, the survey released on Friday said.
Britain's Bribery Act – which covers overseas operations of firms doing business in the UK – became law on July 1, and some companies claimed at the time that it would add new costs and put them at a disadvantage to less tightly regulated foreign competitors.
“The good news for UK business, and growth, is that nearly six months on, the Act has not proved to be the costly barrier that some feared it could become,” Jonathan Middup, head of Ernst & Young’s anti-bribery and corruption team said in a statement.
“The premise that UK businesses need to pay bribes to be competitive abroad is a false one. There is a cost ... but for many well-run businesses they have been able to bolt on the extra requirements to good compliance structures that already exist,” Middup added.
“That more than nine out of ten say their business hasn’t been affected reflects this,” Middup said.
The Ernst & Young survey consisted of interviews with 406 chief financial officers, controllers and finance managers at companies in the FTSE100 index of Britain’s leading shares, to mid-size and small private firms. Firms surveyed included those in the oil and gas, telecommunications, retail, and life sciences sectors, Ernst & Young said.
(Editing by Rebekah Curtis)
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