Speaking recently at an international conference on the issue of corruption, Davies said:

“As affordable credit dries up and working capital shrinks with it, there is a real fear that some businesses may choose to resort to desperate measures to stay afloat and win the orders they need to survive.

“SMEs may be more at risk of being exposed to such pressures than larger companies since they will often wield less power in the business relationship chain.

Current conditions pose a substantial threat to the cause of promoting ethical business conduct. But it should not be seen as solely a moral or ethical issue. Not only does paying bribes drain a company’s resources, but it can cause long-term damage to its reputation with consumers and investors.  It exposes the company and its management to the risk of criminal prosecution.”

He concludes: “While much bribery undoubtedly goes on and remains undetected, it is now the case, world-wide, that banks, accountants, lawyers and many other intermediaries are now required by law to be alert to all illegal payments of this kind and to report them, on a mandatory and confidential basis, to the authorities.”

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