Quoting the Lord Chancellor, “corruption...is now recognised as a significant brake on sustainable economic development and poverty reduction”. “The United Kingdom is committed to play an important role in maintaining the momentum towards the establishment of the highest international standards and the promotion of bribery prevention good practice on both the demand and supply side of commercial bribery”. And so the Bribery Act 2010 and its associated guidance is heralded.
Scheduled to come into force in April 2011, the Act enshrines in statute four offences :
Who does this affect?
It affects individuals and businesses. It applies to both UK companies and foreign companies with operations in the UK, even if the offences take place outwith the UK and are unrelated to the UK businesses.
What should businesses do?
It is a defence for a business to prove that it had adequate procedures designed to prevent persons associated with it from bribing another person to obtain, or retain, business or an advantage in the conduct of its business.
There is currently a Consultation underway on the proposed guidance on commercial organisations preventing bribery. The proposed guidance is designed to be of general application and does not attempt to be prescriptive, recognising that what fits one size or type of operation will not be appropriate to another. It sets out six principles for bribery prevention which reflect UK and international good practice – whether procedures actually put in place are adequate will only be determined by the particular circumstances of the case and ultimately the Courts.
The six principles of bribery prevention are:
Practical Steps
Businesses will be require to:
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put in place clear guidelines stating that bribery is unacceptable and how allegations of bribery will be dealt with;
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consider the procedures which are in place to prevent bribery in light of the six principles mentioned above;
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review employment contracts and policies, specifically to address bribery as well as policies on gifts, hospitality and entertainment as well as whistleblowing procedures;
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provide training for management and employees to ensure that the guidelines are understood and policies given effect.
It is not intended that the Guidance to be issued in terms of the Act supersedes existing bribery prevention guidance published in particular industry or sectors already. Organisations must continue to comply with sector specific regulations and standards at all times in addition to the provisions of the Act.
If you require further information, contact Jeremy Glen at bto.
Posted: 4.11.10