Economic crime still hurting chemical companies

Economic crime continues to be a major problem for the chemical industry
globally after a survey by PricewaterhouseCoopers revealed that more than a
third (37%) of companies have experienced economic crime and need to tighten
controls to combat this threat.

PwC’s Global Economic Crime Survey found that chemical companies suffered
from an average of eight incidents in the past two years, costing an average of
nearly $600,000 (£325,000) per chemical company.

The level of crime is only slight reduced from a year ago when 40% of
chemcial companies were being hit.

Reports of corruption and bribery, however, more than doubled to almost 30%
with Western Europe companies reportinga particularly high rate of
counterfeiting – 39% – more than double the rate reported in other regions.

Saverio Fato, global chemicals leader, PricewaterhouseCoopers, said: ‘In the
past, many chemicals industry executives were under the misconception that fraud
“can’t happen here in my company”. Recently however, the chemicals industry has
seen signs of a culture shift; understanding that fraud does indeed happen, and
that its results have the potential to damage a company’s financial well being,
competitive advantage, employee morale, and vendor/supplier relationships.’

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