2.1. The BPI 2008 Results

Cluster Analysis

As in previous editions of the BPI, cluster analysis was applied to gain greater insight into the 2008 BPI results

Cluster analysis of the 2008 BPI groups countries whose companies exhibit similar tendencies to engage in bribery when operating abroad. This analysis produced four groups of countries. Cluster 1 consists of countries from which companies are least likely to bribe when doing business abroad and Cluster 4 comprises those that are most likely to bribe, according to the senior business executives surveyed.

Cluster 1: Australia, Belgium, Canada, Germany, Japan, the Netherlands,  Switzerland and the United Kingdom.
Cluster 2: France, Singapore, Spain and the United States.
Cluster 3: Brazil, Hong Kong, Italy, South Africa, South Korea and Taiwan.
Cluster 4: China, India, Mexico and Russia.

It is important to note that although Cluster 1 represents the best performers among the 22 countries, the BPI highlights that companies from all countries in the survey show some likelihood to pay bribes. As such, all countries need to improve their enforcement of anti-corruption legislation governing the private sector, and no company can be complacent about the strength of its anti-corruption systems along its entire supply chain.

Foreign bribery as viewed by regions

When assessed on a regional rather than global basis, four regional groupings of senior business executives offered somewhat distinct views of the likelihood of foreign companies to bribe.

• Africa and Middle East: Respondents in these countries (Egypt, Ghana, Morocco, Nigeria, Senegal and South Africa) suggested that when operating in the African continent, companies from the Netherlands and Japan are the least likely to engage in bribery. At the bottom of their ranking were companies from India. It is worth noting that South African companies were seen as likely to pay bribes when doing business abroad within the region.
• Asia Pacific: According to the informed perception of business executives interviewed in these countries (India, Indonesia, Japan, Malaysia, Pakistan, the Philippines, Singapore and South Korea), companies from Germany and Canada are seen to be the least likely to pay bribes. By comparison, companies from China were judged to be most likely to pay bribes when doing business in the region.
• Europe and the United States: For respondents in these countries (the Czech Republic, France, Germany, Hungary, Poland, Russia, the United States and the United Kingdom), Swiss and Belgian companies are seen to be the least likely to engage in bribery, while companies at the bottom include those from China. Italian companies are also judged to be more likely to bribe in this region than many of their European neighbours.
• Latin America: For Latin American executives (Argentina, Brazil, Chile and Mexico), Chinese companies were viewed as the most likely to engage in bribery when doing business in the region, while German companies were seen as the least prone to engage in such practices.