Dr. Matthias Kopetzky Research Project Gender & Corruption: Does the gender-mix in the workplace have a potential influence on

corruption?

Some strange questions?

Is the fight against Corruption a main issue for internal audit?

Does prevention has any meaning in corruption?

Is there a difference between males and femals becoming perpetrators in corruption cases?

Is the gender-mix in teams relevant for the likelyhood of developing a corruption scheme?

Some strange answers!

Since years we repeated one question to collegues:Did you ever had a corruption case with one or more women as main perpetrators?

At least in the DACH-Area (Germany, Austria and Switzerland) we received – sometimes to the surprise of the interviewed person – the same answer:

No Cases

We wanted to know on a broad, statistical baseIIA Austria started a research project named „Gender & Corruption“

What did science find out in general on the role of women and men in corruption schemes?

Study “Gender and Corruption” by Swamy et al (2000)2

Women are less likely to be involved in bribery

Corruption is less severe, when more women are present

The “LIMA”-experiment in Peru

Study “Are Women really the ‘fairer’ sex?” (Dollar et al 2001) 3

the higher the representation of women in parliament, the lower the level of corruption.

Study “Investigating the role of gender over time” (Frank and Schulze 2004)4

“The results reveal a higher willingness to comply among women…”

2) see A. Swamy u. a., „Gender and corruption“, Journal of Development Economics 64, Nr. 1 (2001): 25–553) D. Dollar, R. Fisman, und R. Gatti, „Are Women Really the“, Journal of Economic Behavior & Organization 46, Nr. 4 (2001): 423–4294) Benno Torgler und Neven Valev, „eScholarship: Public Attitudes toward Corruption and Tax Evasion: Investigating the role of gender over time“, o. J., http://www.escholarship.org/uc/item/3983136n?display=all#

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Recent research results from others

Swamy et all from 2001 Using several independent data sets, we investigate the relationship between gender and corruption. We show using micro data that women are less involved in bribery, and are less likely to condone bribe taking. Cross-country data show that corruption is less severe where women hold a larger share of parliamentary seats and senior positions in the government bureaucracy, and comprise a larger share of the labour force.

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What did science find out in general on the role of women and men in corruption schemes?

Study “Gender and Corruption” by Swamy et al (2000)2

Women are less likely to be involved in bribery

Corruption is less severe, when more women are present

The “LIMA”-experiment in Peru

Study “Are Women really the ‘fairer’ sex?” (Dollar et al 2001) 3

the higher the representation of women in parliament, the lower the level of corruption.

Study “Investigating the role of gender over time” (Frank and Schulze 2004)4

“The results reveal a higher willingness to comply among women…”

2) see A. Swamy u. a., „Gender and corruption“, Journal of Development Economics 64, Nr. 1 (2001): 25–553) D. Dollar, R. Fisman, und R. Gatti, „Are Women Really the“, Journal of Economic Behavior & Organization 46, Nr. 4 (2001): 423–4294) Benno Torgler und Neven Valev, „eScholarship: Public Attitudes toward Corruption and Tax Evasion: Investigating the role of gender over time“, o. J., http://www.escholarship.org/uc/item/3983136n?display=all#

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Recent research results from others

Doller et al from 2001 Numerous behavioral studies have found women to be more trust-worthy and public-spirited than men. These results suggest that women should be particularly effective in promoting honest government. Consistent with this hypothesis, we find that the greater the representation of women in parliament, the lower the level of corruption. We find this association in a large cross section of countries; the result is robust to a wide range of specifications.

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Our Questions:

Hypothesis 1:

In less then 10% of the corruption cases women act as main perpetrators.

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Our Questions:

Hypothesis 2:

In corruption cases, which include women as perpetrators, those women play minor roles in comparison to their male comrades in the scheme.

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Our Questions:

Hypothesis 3:

The more women are working in a reviewed unit the less likely a corruption scheme may evolve. In women-only groups corruption tends to zero.

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Our Online-Survey Folie 12

Our Online-Survey Folie 13

Our Online-Survey Folie 14

Why did we start this?

Important QuestionBased on individual experience

Now make it scientific viable

Possible strong Way of PreventionIf stronger involvement of women in corruption prone areas could help prevent corruption

Survey results interesting to many groupsWe see it as a chance for the national IIA´s to get strong publicity for this study

Gender equality is a prime issue to many groups

A surprising new ArgumentIn the gender discussion

In corruption prevention

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What did we find out on individual experience in cases of corruption?

Our own experiences?

No female involvement in cases

Chance of Prevention?

Just bring in more women?

Q: Is Gender an issue if we look at the perpetrators?

By Region?

By median loss?

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Distribution Male-Female

41%

59%

Female (F) Male (M)

Cases by Category

0

20

40

60

80

100

120

140

IllegalGratuities

Bribes EconomicExtorsion

Conflict ofInterest

Nu

mb

er

of

Ca

se

s

Suspicion

Finished

The IIA-Austria Study 2012

4 different corruption schemes

Diff. Typs of CasesFinished

Suspicious

378 participants in the study

Double commitment

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The IIA-Austria Study 2012 – Cases from Internal Auditors

Relationship by Perpetrator, secondary Perpetrator and Whistleblower

Relationship male and female Perpetrators

81%88%

76%

19%12%

24%

78%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Illegal_Gratuities Bribes Economic Extortion Conflict of Interest

Female

Male

Relationship secondary male and female Perpetrators

76%84%

64%

24%16%

36%

79%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Illegal_Gratuities Bribes EconomicExtortion

Conflict of Interest

Female_secondary

Male_secondary

Relationship male and female Tipsters

59,6% 60,0%53,7%

40,4% 40,0%46,3%

59,1%

40,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Illegal_Gratuities Bribes EconomicExtortion

Conflict ofInterest

Female_Tipster

Male_Tipster

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The IIA-Austria Study 2012 – Cases from Internal Auditors

“Direction” of benefits

Did perpetrators offer or accept benefits?

ResultMore Cases with “Acceptance”

Benefits offered or accepted

19%

27%

36%

22%

81%

73%

64%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Illegal_Grat Bribery Economic Extortion Conflict of Interest

Offered

Accepted

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The IIA-Austria Study 2012 – Cases from Internal Auditors

Executives – The tone from the top

Was the head of the department affected male or female?

Internal oriented departments

Purchase oriented departments

Customer oriented departments

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Gender of Head of Dptmts

80% 81%92% 86% 91% 90%

78%

100% 100%88% 83%

96%

4%

17%12%

0%0%

22%

10%9%14%

8%

19%20%

0%

20%

40%

60%

80%

100%

120%

Inte

rnal

Dep

t

Sup

plie

r_D

ept

Cus

t_D

ept

Inte

rnal

Dep

t

Sup

plie

r_D

ept

Cus

t_D

ept

Inte

rnal

Dep

t

Sup

plie

r_D

ept

Cus

t_D

ept

Inte

rnal

Dep

t

Sup

plie

r_D

ept

Cus

t_D

ept

Illegal_Grat Bribery Economic Extortion Conflict of Interest

Female

Male

The IIA-Austria Study 2012 – Cases from Internal AuditorsGender-Mix in affected departments

What was the gender-mix in the involved departments?

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The IIA-Austria Study 2012 – Opinion of Internal Auditors

Gender of potential perpetratorAre Male or Female more prone to corruptive behavior?

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Gender of potential perpetrator (Opinion)

12%

88%

Male

Female

Remember!Only 17,9% females in Europe

Gender of Head of Dept relevant? Opinion

34%

39%

27%

Yes

No

I´m not sure

The IIA-Austria Study 2012 – Opinion of Internal Auditors

Gender of the head of department

Is the Gender of the head of a department influential to the risk, that a corruption case develops?

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Tone set by

the Top

The IIA-Austria Study 2012 – Opinion of Internal Auditors

Relevance of the Gender-Mix

Is the Gender-Mix in a Department influential to the risk, that a corruption case develops?

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Gendermix relevant?Opinion

38%

38%

24%

Yes

No

I´m not sure

The IIA-Austria Study 2012 – Opinion of Internal Auditors

Most risky Gender-Mix?What is the riskiest gender-mix in a department for corruption cases to develop?

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Conclusions (1)

There are more males engaged in corruption cases

The data of the analyzed cases showThat there on average are much more males than females engaged in corruption cases

That the head of involved departments, was male in the majority of cases

this might also be caused by the fact, that there are still more males than females in leading positions.

That there are relatively more female whistleblowers, but more men in absolute numbers.

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Conclusions (2)

Opinion of participating Internal Auditors88% believe, that males are more prone to corruption

This supports our hypothesis, that females are hardly ever involved in corruption cases

34% believe, that the tone set by the top through the head of the department is relevant

28% are unsure and 38% don't share the opinion, that there's a gender issue

38% believe, that the gender mix in a department is relevant24% are unsure and 38% don't believe, there's a gender issues

Internal Auditors have a clear idea, that the higher the number of males in the group, the higher the risk of corruption in the group.

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Conclusions (3)

Prevention:Even if we don't know the causesThe results suggest

That engaging more females in areas vulnerable to corruption could have a containment effectRisk of such preventive activities is zeroCost of such preventive activities is zero

In case of more QuestionsDr. Matthias Kopetzky, CIAMatthias.kopetzky@internerevision.at

If you want to try the surveyhttp://internerevision.limequery.com/58193/lang-enhttp://internerevision.limequery.com/58193/lang-dehttp://internerevision.limequery.com/58193/lang-eshttp://internerevision.limequery.com/58193/lang-frhttp://internerevision.limequery.com/58193/lang-ithttp://internerevision.limequery.com/58193/lang-hr

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Mag. Dr. Matthias Kopetzky, CIA,CFE,CPA

Active Job PositionCEO of Business Valuation Gutachten- und Unternehmensberatung GmbH

(seit 1998)

Professional Experience

Business Consultant

Managerial positions in the IT Industry

HFP-Auditors (Vienna)

CEO of Business Valuation Gutachten- und Unternehmensberatung GmbH

Permanent Expert Wittness in Austrian Courts

Specialist all aspects of economic crime

Engagements

Member of the Board at IIA Austria

Certified Fraud Examiner CFE und Mitglied der ACFE (Association of Certified Fraud Examiners)

Certified Public Accountant CPA/Maine/US

Certified Internal Auditor CIA und Mitglied des IIR (Institut für Interne Revision in Ö)

Lecturer at various universities (Vienna, Wr. Neustadt, Innsbruck, …)

Chair of Special Interest Group “Economic Crime” at the IIA-Austria

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Mag. Dr. Matthias Kopetzky, CIA,CFE,CPA

Books and Articles

Wells-Kopetzky: “Handbuch – Wirtschaftskriminalität in Unternehmen” (LexisNexis-Orac, Wien)

“Das Risikomanagement aus der Sicht der Internen Revision“- Autorengemeinschaft (Linde) Hrsg: IIR Österreich

Kopetzky, Matthias: „Case 55 - Double Damage“ in Wells, Joe (Hrsg): Fraud Casebook – Learning from the bad side of Business (Wiley, 2007, N.J. USA)

Kopetzky, Matthias: „Neue Bedeutung der Korruption im Strafrecht“ in Fellmann/Klug: IKW-Band 116 – Vademecum der Korruptionsbekämpfung (2008, Kommunale Forschung Österreich)

Kopetzky, Matthias: „The Fraud Factor“ in The CPA Journal, April 2008, New York

Kopetzky, Matthias: „Schutz vor Mitarbeiterverfehlungen in Banken“ in Die gewerbliche Genossenschaft, Jg 136, Ausgabe 9-10/2008, S 20ff

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Mag. Dr. Matthias Kopetzky, CIA,CFE,CPAFH Wr. Neustadt

Computerunterstütztes ControllingBeraterverhalten in krisenhaften Unternehmen

FH Wien – UnternehmensführungEinführung in Prävention und Aufdeckung von Wirtschaftskriminalität für BetriebswirteAufdeckung und Prävention von Wirtschaftskriminalität in Fallbeispielen

Akademie für Interne RevisionWirtschaftskriminalität - Mein Unternehmen an der Nahtstelle zu Justiz und Polizei

IIR – Institut for International ResearchZertifizierter Bank-Innenrevisor

Themenbereich Wirtschaftskriminalität in Banken

"Interne Revision in der öffentlichen Verwaltung„ Kampf gegen die Korruption

„Compliance in der öffentlichen Verwaltung„ Hinweisgebersysteme

Gefährdungsanalyse in der FinanzindustrieGemeinsam mit Peter Zawilla (D)

Sicherheitsakademie der Exekutive (BM f. Inneres)

Betriebswirtschaftliche Grundlagen für die Erkennung und Bearbeitung von WirtschaftskriminalitätFallstudien-Training – Erkennung und Dokumentation von Zahlungsunfähigkeit in Unternehmen

Sachverständigenverband Tirol/VorarlbergUnternehmensbewertung aus der Sicht des Gerichtssachverständigen

Slovakische BankenaufsichtFraud in Banks (EU-Projekt)

Wertpapieraufsicht der Volksrepublik China• Anlagebetrug – Aufdeckung und Prävention (EU-Projekt)

Raiffeisen Akademie2-Tagesausbildung f. Interne Revisoren zum Thema „Wirkungsvoller Malversations-Schutz für die Raiffeisenbank“

Frankfurt School of Finance & Management Mitarbeiterkriminalität: Methoden der Prävention und SonderuntersuchungDozent im Zertifikatsstudiengang „Certified Fraud Manager CFM“Dozent im Zertifikatsstudiengang „Certified Compliance Professional CCP“

BIA – Büro für Interne Angelegenheiten (BM f. Inneres)

Tagesseminar im Rahmen der 3-wöchigen Spezialausbildung zu Korruption: Korruptionsbekämpfung in der Privatwirtschaft (jährlich 2x)

Institut Interne Revision DeutschlandVortrag Jahrestagung 2007 in Köln: Case Management in Fraud UntersuchungenVortrag Jahrestagung 2008 in Berlin: Was KMU aus bekannt gewordenen Fraud Fällen lernen könnenVortrag Mittelstandstagung Leipzig: Überlegungen zur Standardisierung von Fraudfall-Abwicklungen (mit Peter Zawilla/Bielefeld)

IIA-Hungary - 3. Internationale CEE Konferenz „Diversity of Auditing“

Vortrag „Audit of Antifraud Management“

2. Staatsanwälte Convent 2007-Mattsee (OSTA Linz)

Der Sachverständige im Wirtschaftsprozess

• Arbeiterkammer Wien - IFAMAusbildung von Aufsichtsräten zu Risiken im Bereich Wirtschaftskriminalität

• Sicherheitskompetenzzentrum der Sparkassen

Schutz vor Mitarbeiterverfehlungen in Banken

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Presentations and Seminars