One in three Swiss companies pays bribes abroad
Christian Fernsby ▼ | March 1, 2024
Despite increased anti corruption measures, the illegal practice of informal payments or “gifts” in foreign business remains widespread, Transparency International Switzerland wrote in a press release on Wednesday.Article continues below
This finding is the result of a joint study by the University of Applied Sciences of the Grisons and Transparency International Switzerland.
The online survey of 539 Swiss companies operating abroad, spanning various sizes and sectors, revealed that 52% face demands for under-the-table payments. Of these, 63% admit making such payments, according to the survey.
On average, 5.6% of turnover in the country in question is spent on hidden payments. This phenomenon affects small and medium-sized enterprises (SMEs) as much as multinational companies.
Companies with production facilities, joint ventures or equity investments show a higher willingness to pay.
Corruption is widespread in both the public and private sectors.
Over 70% of the companies concerned stated that gratuities were expected when contracts were awarded by other companies, while 60% mentioned this in connection with public contracts.
These “expectations” sometimes come from the police or customs offices.
Around a quarter of respondents reported losing a public or private contract to a competitor perceived to be corrupt in the last two years. This was particularly evident in Italy, China, Russia and Germany.
Almost one in seven companies surveyed refrained from entering a market due to the risk of corruption.
Russia, Iran, Belarus and Ukraine were mentioned most frequently in this context.
Additionally, 12% of respondents had exited a market in the last five years for the same reason, with Russia, Iran, Azerbaijan, Angola and China being mentioned most frequently. ■ What to read next
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