The Bribery Act
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The Bribery Act will come into force in April 2011, introducing new anti-corruption legislation that will affect all employers in the UK.
Prior to this Act, which received Royal Assent in April this year, the law was somewhat confusing in relation to this issue and considered inadequate to meet the UK’s international trade requirements.
Four possible offences have been defined under the new legislation:
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Bribing another person i.e. offering, promising or giving a reward to induce a person to perform a relevant function or activity improperly
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Being bribed, accepting or agreeing to accept or requesting a reward in return for performing a relevant function or activity improperly
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Bribing a foreign public official i.e. trying to influence a foreign public official with the intention of obtaining or retaining business in a situation where the public official was not permitted or required by law to be influenced
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Failure to prevent bribery; when an organisation fails to stop people who are operating on its behalf from being involved in bribery. This is also to be known as ‘corporate offence’.
The Act covers bribery which takes place in the UK and overseas, by employees and third parties employed by your organisation.
The part of the Act that will most concern businesses is the new corporate offence of failing to prevent bribery, which applies to “commercial organisations”. These include businesses and partnerships which are either incorporated in the UK or which conduct business, or part of a business, in the UK.
Formal government guidance on this legislation has not yet been produced but a consultation period on the guidance that is to be given will conclude this month.
However, we can expect that organisations will be able to develop the following standards to protect themselves:
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The directors should lead an anti-corruption culture within an organisation and put in place “adequate procedures” to prevent bribery
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Organisations should have a named senior person responsible for these procedures
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The potential for bribery should be risk assessed
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Contracts of employment should confirm the sanctions that will apply if corrupt activities are discoveredÂ
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A policy on the receipt of gifts and hospitality of all types should be included in an organisation’s employment documents
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Employers should be informed that any whistle blowing in relation to such matters will not receive any retaliatory behaviour from the employer or any of its officers
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Financial controls should be in place to minimise the possibility of corrupt activities.
Penalties for committing the corporate offence could include an unlimited fine and/or a prison sentence of up to ten years.
For more information visit http://www.justice.gov.uk/publications/bribery-act.htm.
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