Bribery and corruption pose significant risks to companies, particularly in countries where governance structures are weak or enforcement of anti-corruption laws is lacking.
However, certain nations have gained a reputation for corruption, unethical business practices, and ineffective law enforcement, making them low-risk environments for business bribery.
The TRACE Bribery Risk Matrix evaluates business bribery risk across 194 jurisdictions, territories, and regions. The overall risk score combines four domains: Business Interactions with Government; Anti-Bribery Enforcement; Government and Civil Service Transparency; and Civil Society Oversight, including media involvement.
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Below are the top 10 countries with the lowest business bribery risk, showcasing their commitment to clean governance and corporate integrity.
1. Norway- bribery risk score 5
Norway ranks as one of the least corrupt countries in the world. The country’s robust legal framework, including strict anti-corruption laws, ensures that businesses operate with high levels of transparency. Norway’s culture emphasizes ethical behaviour, and its judiciary system is independent, which minimizes the risk of bribery in both the public and private sectors.
2. New Zealand- bribery risk score 10
Known for its transparent government and strong commitment to the rule of law, New Zealand stands out as a low-risk country for business bribery. The government takes a proactive approach to prevent corruption through legislation such as the Crimes Act and the Secret Commissions Act. New Zealand’s business environment benefits from an independent judiciary and vigilant oversight mechanisms that detect and mitigate bribery risks. Companies in New
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3. Switzerland- bribery risk score 10
Switzerland has earned a stellar reputation as a hub of financial and corporate governance. Stringent anti-bribery laws, combined with a highly effective regulatory system, make the country a safe environment for businesses. The Swiss Penal Code explicitly prohibits bribery of public officials and private bribery, ensuring transparency across sectors. Swiss corporations are subject to strict financial reporting requirements, and there is a strong emphasis on corporate ethics in the nation’s business culture.
4. Sweden- bribery risk score 10
Sweden’s strong institutional framework and commitment to transparency are key factors in minimizing bribery risks. The country’s comprehensive anti-corruption laws and an independent legal system create a favourable business environment. Public officials and corporations are held to high ethical standards, and any breaches are dealt with promptly and severely. Sweden is also a signatory to several international anti-corruption treaties, demonstrating its commitment to global standards.
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5. Denmark- bribery risk score 12
Denmark consistently ranks at the top of global transparency and anti-corruption indices. The country’s governance model is characterized by low levels of bureaucracy, making it harder for corrupt practices to take root. Danish law strictly prohibits bribery, both in the public and private sectors. There is a strong emphasis on ethical behaviour, and breaches of trust are dealt with through a swift and independent judicial process.
6. Finland- bribery risk score 13
Finland boasts one of the lowest levels of corruption in the world, thanks to its highly transparent government and robust legal framework. Finnish law imposes strict penalties on both public officials and private entities found guilty of bribery. There is a strong culture of trust and openness in Finland, making bribery less common.
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7. United Kingdom- bribery risk score 14
The United Kingdom is widely regarded as a leader in anti-bribery efforts. The UK Bribery Act of 2010 is one of the most comprehensive anti-corruption laws in the world, covering both domestic and foreign bribery. The act imposes severe penalties for any company found guilty of engaging in bribery. Furthermore, the UK’s judiciary is highly independent, ensuring fair trials and enforcement of anti-corruption measures.
8. Australia- bribery risk score 14
Australia’s strong regulatory framework and independent judicial system make it a low-risk environment for business bribery. The country’s anti-corruption laws are stringent, and the Australian government has established several independent agencies, such as the Australian Federal Police and the Australian Securities and Investments Commission (ASIC), to monitor corporate behaviour and enforce compliance.
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9. Japan- bribery risk score 15
Japan has a long-standing tradition of ethical business practices and a strong legal framework aimed at curbing bribery. The Japanese Penal Code includes strict provisions against bribery, and the country has also ratified international anti-corruption agreements. In Japan, the combination of cultural values that emphasize integrity and a judicial system that ensures compliance creates a very low-risk environment for business bribery.
10. Canada- bribery risk score 15
Canada has a well-established reputation for transparency and low levels of corruption. The Corruption of Foreign Public Officials Act (CFPOA) is a key piece of legislation aimed at preventing Canadian businesses from engaging in bribery abroad. Canada’s independent judiciary ensures that cases of bribery are prosecuted fairly, and there is a strong focus on corporate governance in both the public and private sectors.
