Supplier Companies Are More Vulnerable to Integrity Challenges, ECI Study Shows

Survey Finds Nearly Half of Supplier Firms’ Employees Have Witnessed Misconduct
Businesses that rely on extensive webs of third-party suppliers and contractors face a heightened risk of ethics and compliance breakdowns, which can damage reputation and create legal and financial consequences, the Ethics & Compliance Initiative (ECI) and FTI Consulting found in a new survey of employees in 13 major global economies.
According to ECI’s Global Business Ethics Survey® (GBES®), 42 percent of supplier firm employees said they had witnessed misconduct on the job, compared to 28 percent who observed wrongdoing at non-supplier companies. Of the supplier company employees surveyed, nearly one-third said they felt pressure to compromise standards, compared to 18 percent at non-supplier companies.

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Ethics & Compliance Risk in the Supply Chain. A report from the Global Business Ethics Survey