From 1st July 2011 the delayed introduction of the Bribery Act finally came into force, making it illegal to bribe suppliers, employees and providers in order to make gains for the business.
The definition of bribery suggests that it is: The act of taking or receiving something with the intention of influencing the recipient in some way favourable to the party providing the bribe.
So does this mean treating clients to a day out at Wimbledon or a day at the races will lead you to cross the legal line?
The guidelines produced by the Ministry of Justice aim to assist in clarifying the position however there appears still to be some confusion over where hospitality and gifts are no longer gestures of thanks but acts of bribery.
Key phrases such as ‘lavish’ and ‘proportionate’ need to be tested and defined in case law to enable a true picture of the boundaries.
What action should you take to assist in being compliant?
Where there is very little risk of bribery being committed then the Act does not require the business to have detailed policies and procedures, simple reminders and reviews will suffice.
If in doubt, or where there may be a risk of bribery taking place, the guidance recommends adopting the Six Principles.
- Proportionality -The action you take should be proportionate to the risks you face and to the size of your business. You might need to do more to prevent bribery if your organisation is large, or if you are operating in an overseas market where bribery is known to be commonplace, compared to what you might do if your organisation is small, or is operating in markets where bribery is not prevalent.
- Top Level Commitment - Those at the top of an organisation should show that they have been active in making sure that staff and the key people who do business to business understand that there is zero tolerance towards bribery.
- Risk Assessment - What markets does the business operate in? Are they subjected to high levels of bribery?
- Due Diligence - Before engaging in business, undertake simple steps to enquire about the company and their stance on bribery.
- Communication - All staff need to be aware of the organisation’s policies and procedures, and additional training to raise awareness would be an advantage to most.
- Monitoring and Review - The risks faced by businesses frequently change and this should be addressed with regular policy reviews.
The guidance notes make it very clear that business will not fall foul of this Act if they can demonstrate they have ‘adequate procedures’ in place to prevent bribery - following the Six Principles will assist in creating such adequate procedures, your Insight consultant can advise you on updating your policy and also provide you with information on awareness training.