Australia Institute: corporate crime now endemic

By Harry Allan

Corporate crime is becoming increasingly prevalent in Australia, according to a new report carried out by the Australia Institute. Regulators are investigating hundreds of cases every year, with no indication of any reduction.

The Australia Institute - a think-tank - has released a new report called Corporate Malfeasance in Australia that highlights the degree of corporate wrongdoing among corporations. Perhaps the most worrying revelation is the reduced number of regulators with the authority and resources to pursue and investigate corporate criminals.

Agencies that monitor corporate malfeasance have seen their staffing cut by almost 4,000 (representing 14.9 percent of total staff) – since the 2013-14 budget.

The report strongly recommends that the current government reinstates staffing budgets and resources for relevant agencies such as the Australian Tax Office (ATO) and the Australian Securities and Investments Commission (Asic) to help fight the problem.

Another key take-home point that the report highlighted was the absence of a database in Australia that gives a complete view of the wrongdoing. The report demonstrates thst Asic has concluded 3,115 cases against corporations over the last four-and-a-half years, of which 2,095 were criminal.

The report says: “This is unlikely to represent the full extent of non-compliance by corporations with relevant legal requirements because Asic, like most regulators, has limited resources and a reluctance to take formal proceedings unless there is a very high prospect of success.”

Business Review Australia & Asia's May issue is now live. 

Follow @MrNLon and @BizReviewAU on Twitter.

Business Review Australia is also on Facebook. 

SOURCE: [Guardian


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance