Survey Key Points

  • A survey by the Association of Chartered Certified Accountants (ACCA) shows that nearly half (48%) of small and medium-sized enterprises (SMEs) globally believe that over the past decade, peer companies have been more inclined to distort financial statements to conceal fraud and other corrupt practices.
  • About three-fifths of SMEs believe that peer companies face a higher likelihood of bribery and other corruption risks; at the same time, an equal proportion believe that resisting such misconduct will harm their trade and other business opportunities.
  • Jillian Couse, Head of ACCA North America, said in a statement: "Corruption is poison—it distorts markets, hinders economic growth, and suppresses investment."

In-Depth Analysis

Transparency International points out that the United States has made little progress in anti-corruption efforts since 2021. Last year, the organization ranked 180 countries and regions based on perceived levels of public sector corruption.

The United States scored 69 points for the second consecutive year (out of 100, where 100 represents "clean"), with assessment factors including bribery, misappropriation of public funds, prosecution of corrupt officials, and use of public office for private gain. Transparency International said when releasing the Corruption Perceptions Index in January: "The stagnation in the U.S. score reflects a continued lack of progress in anti-corruption measures that protect democratic processes and institutions." The organization also noted that U.S. citizens believe wealthy individuals are more likely to "buy" elections compared to other developed countries.

The ACCA survey results indicate that corruption is clearly more concealed than five years ago. Compared to the 2019 survey, SME owners and their financial advisors globally now report greater difficulty in identifying misconduct related to contract-related consultancy or facilitation fees, as well as in corporate hospitality invitations.

The ACCA survey also found that, compared to five years ago, offering gifts or payments unrelated to business, as well as regulatory officials hinting at special treatment, have also become harder to expose.

Meanwhile, in markets prone to bribery and corruption, SME owners and their financial advisors believe that, compared to 2019, they are more likely to encounter misconduct when dealing with public sector officials and negotiating contracts for cross-border trade in goods and services.

ACCA survey respondents said that misconduct arising from private sector contract negotiations and supply chain pressures is also more prevalent than in 2019.

ACCA stated: "Many small businesses lack bargaining power and find it difficult to refuse demands for small bribes. Entrepreneurs must choose between paying bribes and losing business—and for those trying to support their families, this often is not a choice at all."

London-based ACCA has 247,000 members across 181 countries.