Bribery Act 2010 - Part 1 – What it means for your business

Although the Bribery Act 2010 is not yet in force, criticism has been levelled as to the extent of new systems that businesses will need to implement to ensure they comply.   Kenneth Clarke (whose department, the Ministry of Justice, is running behind in the publishing of the Guidance) has said that "the guidance must make it absolutely clear that ordinary legitimate promotion – hospitality and similar activities in which people engage in order to promote the quality of their company and its products or services and to establish relationships with clients and customers – is all part of international trade."

The penalties for transgression by companies and their directors are draconian and everyone in business needs to be aware of their responsibilities. To enable you to do this I shall produce a series of three short articles help you understand risks to which you are exposed.

What is bribery?

Transparency International (a non-governmental anti-corruption organisation) defines bribery as "the offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal or a breach of trust."

Why has the Bribery Act 2010 been introduced?

The Bribery Act 2010 was introduced to strengthen the existing bribery and corruption laws in the UK. The Organisation of Economic Co-operation and Development (OECD) has repeatedly criticised the UK system for being weak and ineffective compared with the more robust regimes in other countries, such as the US Foreign and Corrupt Practices Act.

What are the penalties for committing an offence?

• Your business may be damaged by adverse publicity if it is prosecuted for an offence.
• The offences of bribing another person, being bribed and bribing a foreign public official are punishable on indictment either by an unlimited fine, imprisonment of up to ten years or both. Both a company and its directors could be subject to criminal penalties.
• The new corporate offence of failure to prevent bribery is punishable on indictment by an unlimited fine.
• Businesses convicted of corruption could find themselves permanently debarred from tendering for public sector contracts.
  
  

More information

If you have any questions about the content of this article, then please feel free to contact me by email mailto:martinh@cleggssolicitors.com?subject=Brand%20Management or call me on 0759 522 5330

Martin Hall