Fraud a ‘disease’ for business world

MOUNTING pressure on businesses means companies have to be vigilant to ensure they are well protected against fraud.

In today’s environment where the focus on corporate governance and the accountability of directors have shot to the top of the agenda, companies have to ensure they are not left open to legal challenge.

That’s according to Duncan Wiggetts, legal counsel for PricewaterhouseCoopers (PwC) Europe.

Mr Wiggets made his assertion at the Irish screening of PwC’s short film drama Risking it All.

“Fraud is a disease, not only for business, but for society as a whole,” he said.

Cases of fraud and other illegal acts are getting increasing attention from regulators and the media.People are no longer prepared to accept the status quo and directors and other corporate executives can expect tougher scrutiny, he said.

Firms should expect media and corporate enforcers in this new climate to be more probing and to insist on the highest standards of corporate responsibility from independent sources.

“And it goes without saying that, should a company get into a serious situation and not address it properly, its reputation — and the reputation of the key people involved — could be irreparably harmed,” he warned.

PwC Ireland partner Bob Semple said: “In our current very difficult operating environment, the application of sound corporate governance principles is critical.”