The energy business – particularly the oil & gas sector – is one of the most global industries by virtue of the need to go where the resources are located. This makes national borders arbitrary and leads companies to invest billions of dollars in jurisdictions with high levels of above-ground risk.
In their 2013 Fraud Survey, accounting giant Ernst & Young queried over 3,000 board members, executives, managers and their teams across 36 countries about the ilicit or unethical pressures they face. “The results make for uncomfortable reading,” David L. Stulb, Global Leader Fraud Investigation & Dispute Services writes in the survey’s forward.
The uncomfortable results center around 3 clear messages:

“Executives and their teams are under increased personal pressure to produce growth in extremely challenging conditions.

Unethical conduct — including fraud, bribery and corruption — in response to this pressure is not just a hypothetical risk. One if five respondents have seen financial manipulation occurring in their companies. Fifty-seven percent believe that bribery and corruption are widespread in their country.

Compliance programs work, but not well enough. Companies that do not keep asking the right questions — and demanding answers — are exposing themselves to significant risk.”

The survey focused on Europe, the Middle East, India and Africa – some of the world’s most resource rich regions – and can be read in its entirety here.