This is the third in my series of articles relating to the implication of the Act on businesses. You can view the preceding articles by clicking on Article I and Article 2
Small and medium-sized enterprises will inevitably have fewer resources to counter bribery than larger companies. However, you can take some straight-forward measures before the law comes into force to help prevent your business breaching the new legislation.
Director-level and senior management support
Make sure all senior managers and directors understand they could be personally liable under the Bribery Act 2010 for offences committed by the business. It is important that senior management lead the anti-bribery culture of your business, especially if it wants to take advantage of the "adequate procedures" defence to the offence of failing to prevent bribery.
Risk assessment
- Make sure you understand the risks your business may be exposed to. For example, certain industry sectors (such as construction, energy, oil and gas, defence and aerospace, mining and financial services) and countries present a greater risk, as employees are more likely to engage in bribery in these areas.
- Think about the types of transactions your business engages in, who the transactions are with and how you undertake the transaction. High-risk transactions include:
- procurement and supply chain management;
- involvement with regulatory relationships (for example, licences or permits); and
- charitable and political contributions.
- Review how your business entertains potential customers, especially those from government agencies, state-owned enterprises or charitable organisations. Routine or inexpensive corporate hospitality is unlikely to be a problem, but you should put clear guidelines in place.
- If your business operates in foreign jurisdictions, always check local laws.
Anti-corruption code of conduct
You should have a code of conduct setting out clear, practical and accessible policies and procedures that applies to your entire business.
Dealing with third parties
Your business will be liable if a person associated with it commits an offence on your behalf. You should review all your relationships with any partners, suppliers and customers. For example, if an agent or distributor uses a bribe to win a contract for your business, you could be liable. You must ensure that background checks are carried out on any agents or distributors before you engage them.
Policies and procedures
Review any existing policies and procedures your business has on preventing bribery and corruption and decide whether they need to be updated. If you do not have any policies or procedures in place, prepare them as a matter of urgency.
Effective implementation and monitoring
- You should consider introducing a compulsory training programme for all staff. If only a few of your employees operate in a high-risk area, make sure the training is targeted at them.
- Ensure anti-corruption policies and procedures are continually monitored for compliance and effectiveness, both internally and externally.
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