One in seven employees at large UK companies feel that using cash bribes or personal gifts is an acceptable way to win business in a tough economy, according to new research that reveals widespread tolerance of unscrupulous behaviour.

The survey, released on Wednesday by Ernst & Young, shows that senior managers may be cutting ethical corners as they struggle to stabilise their businesses amid the worst economic downturn since the early 1990s. More than 60 per cent of UK respondents said they expected fraud to increase over the next few years – one of the highest percentages in Europe.