The Bribery Act will come into force on 1st July this year, and employers should be taking steps to ensure that they are ready to comply with the legislation.
Bribery is often thought to be the domain of crooked big businesses dealing overseas, but the new legislation is clear – it will be a criminal offence for an individual or a commercial organisation to offer or receive a bribe in order to ‘oil the wheels’ of business, and this relates to all businesses and their employees, large or small.
There are five steps that can be taken to minimise the risk of falling foul of the new rules. These include: implementing policies to cover whistle-blowing procedures; systems to cover financial and commercial controls, such as billing and payments; policies to cover business rules on gifts, hospitality and how the business runs its promotional budget; recruitment and discipline procedures that include anti-bribery measures; and detailed guidance on how anti-bribery measures will work in practice.
It is also advisable to carry out occasional risk assessments, assess the honesty of intermediaries and contractors and communicate to staff, including providing training.
As a minimum requirement, employers should reassess their disciplinary, grievance and whistle-blowing policies, their company handbooks and any ethics or conduct codes. Where policies may be open to abuse, such as for charitable donations, work placements, corporate hospitality and sponsorship, regular reviews and amendments are advised.
Employers may also choose to take another look at their contracts of employment, especially for members of staff whose work may lead them to temptation. This could allow for termination of contract (following an appropriate disciplinary procedure) should a breach arise.
Thought should also be given to training and, for senior staff, should cover: what constitutes bribery; the areas of risk; any potential corporate and individual liability; policies and procedures, and the roles employees play in those(including reporting of any suspected cases of bribery); and the part employees can play to ensure that bribery does not take place.
Such training should also be extended to new recruits to ensure that they are fully aware of policies and procedures.
So-called ‘associated persons’ should also be assessed, as they too may be liable for any instances of bribery. Recruitment companies, commercial agents, joint venture partners, consultants and sub-contractors all fall within this category.
Planning and implementation of procedures and policies are key to protecting a business and the individuals who work within it and for it from the vagaries of the Bribery Act. Effort made now could mitigate the risk of a custodial sentence later on.
