Associated Persons

A commercial organisation could be liable if a person ‘associated’ with it bribes another person intending to obtain or retain business (or a business advantage) for the organisation.

A person associated with a commercial organisation is someone who ‘performs services’ for (or on behalf of) the organisation, whether an individual or an incorporated (or unincorporated) body.

The capacity in which a person performs services (for or on behalf of the organisation) does not matter, so employees (who are presumed to be performing services for their employer), agents and subsidiaries are included.

The concept of a person who ‘performs services for or on behalf of’ the organisation is a broad-brush, applicable to a whole range of persons connected to an organisation who might be capable of committing bribery on the organisation’s behalf.

Whether or not a person is 'performing services' for an organisation, is to be determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship between that person and the commercial organisation.

See also:

The Bribery Act 2010
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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