Legal Ease

The Bribery Act 2010 will come into force on 1 July 2011. It is considered to be one of the strictest pieces of anti-corruption legislation worldwide. Essentially, bribery is defined as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so.

There are four main criminal offences under the Act:
* Bribing another person, including offering, promising or giving a bribe.
* Being bribed, including requesting, agreeing to receive or accepting a bribe.
* Bribing a foreign public official.
* The corporate offence of a failure by a commercial organisation to prevent persons associated with it from bribing another person on its behalf.

The first three offences are mainly committed by an individual e.g. employee. However, the last offence only applies to businesses and will be the biggest concern to employers, who could find themselves liable for failing to prevent bribery committed by those who provide them with services. However, employers will have a defence if they can prove they had “adequate procedures” in place to prevent bribery.

If a prosecution is successful under the Act, the penalties could be:
* Directors, Partners and Senior Managers could face up to 10 years imprisonment and/or an unlimited fine, if found guilty of one of the first three offences as detailed above.
* Additionally a Director may be given a Disqualification Order for up to 15 years (under the Company Directors Disqualification Act 1986).

Adequate procedures depend on the bribery risks you face and the nature, size and complexity of the business. As a business, considerations include:
1. Proportionality – how large and widespread is your business?
2. Commitment – top level commitment from the business leaders to create an anti-bribery culture in the company.
3. Risk Assessment - Who do you do business with? Where might bribery be common place?
4. Due Diligence - a company must know its clients, employees and agents. Carry out checks on who you are dealing with.
5. Communication - a company must ensure that its employees and agents know and understand the company’s anti-bribery policies. Explain to all people who may cause risk (whether internal or external) what you are attempting to avoid.
6. Monitoring and review - markets change and companies move into new markets. In either case, the assessment of risk must be continual.

Corporate Hospitality and other Business Expenditure
The guidance adopts a permissive tone on this topic. It states that “bona fide hospitality and promotional, or other business expenditure which seeks to improve the image of a commercial organisation, better to present products and services, or establish cordial relations, is recognised as an established and important part of doing business and it is not the intention of the act to criminalise such behaviour”. Therefore, it is still permitted to provide genuine hospitality (if reasonable and proportionate). Tickets to sporting events, lunches, paying for travel expenses is still acceptable.

Your business could be at risk if you do not review / update or introduce the relevant policies within your employment documentation.

IF YOU NEED ASSISTANCE WITH IMPLEMENTING A POLICY THEN PLEASE CONTACT US ON 0845 450 0898

Labels: Anti-Bribery Legislation, Bribery Act 2010