Employers cannot guarantee their operations are free from the risk of bribery and corruption. For UK firms with domestic and/or international operations the Bribery Act provides an added dimension of risk, particularly associated with employees, agents and intermediaries who operate with autonomy or low levels of senior management oversight.

When seeking to win new business, or to retain existing business, UK law includes:

• Criminal offences associated with offering, promising or giving bribes.
• Criminal offences associated with requesting, agreeing to receive or accepting bribes.
• A discrete offence of bribery of a foreign public official.
• A corporate offence for failing to maintain adequate procedures to prevent bribery by associated persons.

There is a defence to the corporate offence, when an employer is able to demonstrate that adequate procedures are in place to prevent bribery.

Reasonable and proportionate corporate hospitality will not amount to a bribe. But, no exception or excuse is available to persons involved in making illegal payments, or who provide excessive entertainment or lavish gifts, which could amount to a bribe.

See also:
Associated Persons
The Regulator
Law Enforcement
Risk in current operations
Risk in new ventures and acquisitions
Red-Flags
Adequate procedures

An effective Compliance Programme reduces corruption risk when designed to prevent and detect violations or breaches before they occur. Such programmes include:

• Tone from the top - High level Policy Statement or Code of Conduct endorsed by senior management.
• Guidance - Compliance Manual with written standards and guidelines for all employees, contractors, agents, etc,.
• Accountabilty - Designated senior manager responsible for oversight, monitoring and compliance arrangements.
• Education - Training and awareness for directors, management, employees and relevant contractors / agents.
• Alert mechanism - Confidential telephone hotline for reporting details of suspected breaches.
• Assurance - Independent reporting to Senior Management (i.e. The Board) and the Audit Committee (e.g. Results of Internal Audit reviews/compliance-based testing).

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