The Bribery Act 2010 - what does it mean for your Business?
Posted by Julie Alchin on 2nd February 2012
There has been much publicity about the Bribery Act 2010 (“Act”) which came into force on 1 July 2011.
The Act introduced the following offences:
- offering, promising or giving of a bribe;
- requesting, agreeing to receive or accepting of a bribe;
- bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business; and
- failing to prevent bribery on behalf of a commercial organisation.
Royal Mail recently warned its staff about accepting Christmas gifts valued at more than £30 for fear of falling “foul of the Bribery Act”.
The Ministry of Justice guidance makes it clear that “no one wants to stop firms getting to know their clients by taking them to events like Wimbledon or the Grand Prix”. This is reassuring as the vast majority of businesses invest a lot of time and money in developing and maintaining relationships with their clients whether it is at the golf course, over dinner or some other event.
Although it appears as though “reasonable and proportionate” hospitality is not meant to be caught by the Act, it does apply to any benefit which is given to a decision maker with the intention of influencing that decision maker.
One of the examples given by the Ministry of Justice is where someone performs services for the business, such as an employee or agent and pays a bribe specifically to get business, keep business, or gain a business advantage for your organisation.
You may recall the news story in November about a clerk who took bribes while working at a London court. He became the first person convicted under the Bribery Act and was jailed for six years.
It is a defence for a business to prove that despite a particular case of bribery, it nevertheless had adequate procedures in place to prevent persons associated with it from bribing.
As the Ministry of Justice Guidance states, “the procedures [implemented by a business] should be proportionate to the risks faced by an organisation” and what counts as adequate will depend on the bribery risks faced by your business together with the nature, size and complexity of your business.
For example, a small or medium sized business which operates primarily in the UK will face a minimal bribery risk and will require relatively minimal procedures to mitigate those risks. However a large organisation or one operating overseas where the risks may be higher might need to do more.
There are simple practical steps your business can take to assess and mitigate the risks of bribery.
