One in seven employees polled at large UK companies are prepared to offer cash payments to secure business, and little more than half are aware of an anti-bribery policy at their firm.

‘Ernst & Young’s 2011 European fraud survey’, which asked more than 2,300 employees from the factory floor to the C-suite, across 25 European countries, found that most UK companies remain unprepared for the new legislation, with compliance programmes significantly underperforming.

The survey also found that UK respondents continue to report a challenging business and economic environment, and feel under more pressure than ever to reduce costs (77% up from 72% in 2009).

Overall, 50% of UK managers admitted that they are likely to cut corners to meet their targets. While this is high, it is lower than the proportion in France (76%) and Germany (78%).

John Smart, Fraud Investigation & Disputes Services leader for Ernst & Young in the UK & Ireland, says: “Our survey findings should cause concern among company directors in the UK. A lack of understanding about fraud, bribery and corruption among all employees, combined with intense cost-cutting initiatives at many companies, will no doubt create additional exposure to bribery and fraud risks.”

Some comfort for the UK, however, can be found in the 72% of UK management who are not prepared, under any circumstances, to offer bribes to win business. This is far above the overall European average of 51%.

The UK Bribery Act, due to come into force on 1 July, increases demands on all companies with UK operations to re-evaluate their ethical guidelines and understand the risk of bribery.

The introduction of the Act is timely given that 71% of UK respondents want to see increased supervision by regulators, compared with 86% in France and 58% in Germany. And 72% in the UK think that offering rewards to incentivise employees coming forward with information will encourage whistleblowing, more than the 54% in both France and Germany.