Posted on June - 30 - 2011
Bribery Act implementation – urgent steps for business owners to take
With the implementation of the Bribery Act just round the corner, a leading business advisory firm has warned business owners of their legal obligations when the regulations go live, and have provided some useful steps to take to ensure compliance with the Act.
John Smart from Ernst & Young commented on the need for companies to be compliant with the new rules, which take effect from 1st July 2011:
“Companies need to understand the risks they may run if they do not make an active effort to demonstrate their willingness to abide by the Act. Whilst the Bribery Act was originally delayed, it is now just a day away and the clock is ticking. Our recent European Fraud Survey found that one in seven employees at large UK companies are prepared to offer cash payments to secure business and little more than half are aware of an anti-bribery policy at their firm, showing there is clearly very significant ground left to be covered”
Urgent steps to ensure compliance with the Bribery Act
1. Ensure your processes are right. Businesses should appoint an ethics officer and undertake a risk assessment to give that officer a clear picture to work from. It is important that you record incidents where ethical standards may have been breached, keep records and log any concerns;
2. Know exactly what is going on in your company, especially if you operate in countries where corruption is common. It could be a shrewd move to employ a risk assessment adviser to examine your overseas operations;
3. Train your employees – make sure they understand the Act by giving adequate support and guidance. Keep hold of any materials used, to show that you have taken training seriously. Again, this is particularly important given that in our recent survey, in which 74% of respondents said that they had not yet received any anti-bribery training.
4. Working out what you can and can’t offer to clients can be difficult – you are required to judge whether or not a gift or corporate entertainment counts as “appropriate”. What is lavish to one may be seen as stingy by another. For instance, it might be acceptable to take a top broker out for lunch, but not to fly him out to New York in First Class.
5. Demonstrate the zero tolerance message. As an initial step, discuss the issues at a board meeting and ensure the minutes reflect that you have added anti-bribery measures to your code of conduct.
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