IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

Bad reputation: The impact of bribery & corruption on A/NZ businesses

By Julia Gabel
Thu 22 Jun 2017
FYI, this story is more than a year old

The damage bribery and corruption can cause to an organisation transcends far beyond any immediate financial losses.

Potential damage could have a deep and lasting impact on a business’ reputation, culture, regulatory standing and even long-term profitability.

This is according to the recently released report, the Deloitte Bribery and Corruption Survey 2017.

Overall, most respondents say damage to their reputation is the biggest risk associated to bribery and corruption, whether that’s domestic (65%) or international (70%), states Deloitte’s Australian forensic leader Chris Noble.

Deloitte New Zealand Forensic leader Barry Jordan explains that organisations need to be proactive and vigilant to have any chance of combating bribery and corruption, otherwise they will simply fall behind.

“Although we are getting much better at identifying the symptoms of commercial and public sector bribery and corruption, whether that is through traditional or social media channels, we have still a lot to learn,” says Jordan.

Noble says 77% of respondents believe the best way to prevent domestic corruption is to get the organisational culture right.

“They also selected ‘tone at the top’ (15%), followed by getting processes right (14%) as the three most important factors organisations in our region need to improve their skills and prevent bribery and corruption incidents,” continues Noble.

There is a rise in the awareness around bribery and corruption which is being driven by increased requirements from Anti-Bribery and Corruption (ABC) regulation, as well, in some cases, by using advanced detection and training systems.

“Global uncertainty is also increasing this focus,” says Noble.

“Our cross-Tasman regulators are actively enforcing agendas to minimise money laundering, terrorist financing, corporate misconduct and fraud. There is also greater international cooperation, collaboration and benchmarking between law enforcement agencies to facilitate cross-jurisdictional investigations.” 

“This awareness is brought out in our 2017 survey by the fact that tip-offs are still the most common method of detection,” adds Jordan.

Jordan says that although Boards and executives need to set the tone (14%), more importantly, middle management must effectively execute ABC (anti-bribery and corruption) programs on the ground.

Noble and Jordan both agree that in such volatile and uncertain times, companies cannot afford to be overconfident when it comes to preventing, detecting and responding to foreign and domestic bribery and corruption.

“The message from lawmakers is clear – bribery and corruption are the focus, and cutting corners to save time is not an acceptable way of doing business. Businesses and the regulators in Australia and New Zealand recognise the risk and will simply not tolerate bribery and corruption,” concludes Jordan.

“The reality is whether you choose to adapt to developing expectations, or deploy the bare minimum to remain compliant in a regulatory sense, will determine whether you stay one step ahead of the ABC edge.”

45% of respondents expect to implement or upgrade their ABC framework in the next five years.

Key findings from the Deloitte Bribery and Corruption Survey 2017 include:

New Zealand has an international reputation to maintain:
  • In 2016 Transparency International’s Corruption Perceptions Index, ranked New Zealand and Denmark jointly as being perceived to have the least corrupt public institutions in the world
  • Despite this, New Zealand had its biggest ever bribery prosecution, ‘Borlase and Noone’, in 2016. This was the first prosecution where the judgement included specific guidance for organisations looking at what should and should not be offered (or accepted) by New Zealand public officials.
  • New Zealand is clarifying penalties for foreign corruption and setting circumstances in relation to the liability for companies.
Australia is on the cusp of further change, with impending initiatives such as:
  • Australia’s first Open Government National Action Plan, an ambitious agenda that includes the improvement of business transparency and accountability, open data and digital transformation, access to government information, public sector integrity and public participation engagement
  • New false accounting legislation has been introduced
  • The Australian Attorney-General’s proposed amendments to existing foreign bribery offences now include recklessness and a new corporate offence of failing to prevent foreign bribery
  • A Senate Committee into the adequacy of the Australian legislative, institutional and policy framework in addressing corruption
  • The appointment of a federal national integrity commission
  • The consideration of Deferred Prosecution Agreements as a tool to combat corporate crimes
  • Proposed whistle-blower protection reforms for corporate, public and not-for-profit sectors, with an inquiry due to report June 2017
  • Proposed changes to beneficial ownership legislation, where submissions are under consideration and reporting is expected later this year.
Related stories
Top stories
Story image
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Customer experience
Research unveils precarious customer loyalty for retailers
New research has found customers are reassessing established brand loyalties as their priorities and behaviours shift.
Story image
NCSC advisory highlights poor security configurations
The GCSB's National Cyber Security Centre (NCSC) has released a cyber security advisory identifying commonly exploited controls and practices.
Story image
Digital Transformation
Trading up: It's time to swap core systems for flexible digital applications
This year will see more oranisations planning and commencing high tech renovations that will shake up the way they operate.
Story image
Artificial Intelligence
CFOs using digital workers and AI to prevent unnecessary loss
New technology is now allowing CFOs to use digital workers to automate their accounting processes, making it easier for them to avoid unnecessary losses.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
A third of companies paying ransom don’t recover data - report
Veeam's report finds 76% of businesses who are victims of cyberattacks paid the ransom to recover data, but a third were still unable to get their information back.
Story image
Artificial Intelligence
Clear Dynamics closes $35M funding round, invests in global growth
The funding is a major milestone and speaks to Clear Dynamics’ vision for AI-enabled ‘composable’ enterprise software, the company states.
Story image
Wireless Nation
Wireless Nation, N4L provide 4G network to remote NZ schools
Wireless Nation and Network for Learning (N4L) have rolled out the Rural Connectivity Group’s (RCG) new 4G network to better connect three Chatham Islands schools.
Story image
Commerce Commission
ComCom appeals $2.25 million fine in Vodafone FibreX case
The Commerce Commission has filed an appeal in the High Court against a $2.25 million fine imposed on Vodafone NZ for its offending under the Fair Trading Act.
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
BeyondTrust integrates Password Safe solution with SailPoint
BeyondTrust has announced the integration of BeyondTrust Password Safe with SailPoint identity security offerings.
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
For every 10PB of storage run on HyperDrive vs. comparable alternatives, an estimated 6,656 tonnes of CO₂ are saved by reduced energy consumption alone over its lifespan. That’s the equivalent of taking nearly 1,500 cars off the road for a year.
Link image
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Zendesk announces new conversational CRM solutions
“The last few years have made it obvious that digital is the front door, convenience is paramount and relationships are anchored in conversations."
Story image
Ivanti and Lookout bring zero trust security to hybrid work
Ivanti and Lookout have joined forces to help organisations accelerate cloud adoption and mature their zero trust security posture in the everywhere workplace.
Story image
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
Data and analytics could be key to higher selling prices in APAC
Sisense's latest report has found that almost half of data professionals in APAC think customised data and analytics can create better selling prices for their products.
Story image
Could your Excel practices be harming your business?
While Excel has been the de-facto standard for budgeting, planning, and forecasting, is it alone, enough to support organisations in the global marketplace that’s facing rapid changes due to digital transformation?
Story image
Digital Transformation
The impact of COVID-19 on healthcare environments and care delivery
The COVID-19 pandemic has revolutionised the healthcare industry while overcoming staff shortages, social distancing requirements, and lockdowns.
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Remote Working
IT teams deploy powerful technologies to enable remote work
"We found that IT teams mastered the challenges of remote work last year in large part by employing powerful yet easy-to-use technologies."
Story image
Grasping the opportunity to rethink the metrics of a sustainable data centre
A data centre traditionally has two distinct operations teams: the Facility Operations team, and the IT Operations team. Collaboration between them is the key to defining, measuring, and delivering long-term efficiency and sustainability improvements.
Story image
Voxel hits total funding of $18M following ongoing wins
Since raising its seed round in September, Voxel has grown at pace, by decreasing on-site injuries by upwards of 80% and increasing operational productivity.
Story image
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Microsoft backing Māori and Pacific wāhine in tech industry
A new initiative focused on getting Māori and Pacific wāhine into the tech industry and backed by Microsoft, NZTech and the government is calling for tech companies to get involved.
Story image
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Meadows exits Ingram Micro New Zealand on a good note
We look at the resignation of Danny Meadows from Ingram Micro's New Zealand Unified Communications & Collaboration business unit.
Story image
Power at the edge: the role of data centers in sustainability
The Singaporean moratorium on new data center projects was recently lifted, with one of the conditions being an increased focus on power efficiency and sustainability.
Story image
Cloudflare launches instant serverless database for dev teams
"Today we’re announcing our first serverless database which we expect will quickly become one of the largest databases in the world."
Story image
Public Cloud
Cloud adoption still a work in progress, NetApp finds
NetApp has announced the results of the annual Cloud Infrastructure Report based on a survey of public cloud business and IT decision makers.
Story image
Managed service providers: effective scoping to avoid costly vendor pitfalls
Managed security services are outsourced services focusing on the security and resilience of business networks.