Why the new Bribery Act is good for business
Here’s why today’s most successful companies welcome its introduction.
Leading CEOs are taking the UK Bribery Act very seriously indeed. They are leaders who understand their responsibilities in protecting their companies’ reputation against lethal threats such as bribery and corruption.
Company behaviour is now a key driver of business strategy, and many are focusing on how they can best build and manage a strong culture inside and outside their organisations.
Culture in its simplest definition is ‘the way things really get done’ within an organisation, from how people write emails, to how leaders reward (or ignore) accomplishments. Culture can determine how a company relates to its stakeholders, and how and why decisions are made.
The Act is forcing overseas companies to change their behaviour.
Foreign companies with a link to the UK are now changing their own procedures to comply with the Act — this is helping UK businesses compete fairly with them.
Less corruption through agents and suppliers overseas.
The Act will push suppliers, agents and intermediaries in developing countries to install stronger anti-corruption controls.
Foreign governments are introducing new bribery laws too.
Even in developing nations, governments are setting out new initiatives to strengthen their own anti-bribery legislation to meet the new standards being set in the UK and elsewhere. In February 2011, China amended its Criminal Law to prohibit the payment of bribes to non-PRC government officials.
Promotes the right behaviour - an ethical corporate culture.
An effectively implemented compliance programme that’s designed in line with a company’s corporate culture will prove more sustainable and lead to improved overall business performance.
What does the Act cover?
The new UK Bribery Act 2010 prohibits bribery, or attempted bribery. Bribery includes business kickbacks, corrupt commissions, and other forms of illicit business payments to secure business or government contracts. It also prohibits payments made to obtain a business advantage, such as expediting goods through customs, attempting to receive a more favourable tax treatment and influencing legislation.
The Three Key Provisions of the Bribery Act:
One |
Two |
Three |
| A broad prohibition that outlaws giving and receiving a bribe, as well as offering or promising a bribe, and requesting or agreeing to receive a bribe. | A separate offence of bribery or attempted bribery of a foreign public official to obtain business or to obtain an advantage in the conduct of business. | A new strict liability offence if commercial organisations fail to prevent bribes being paid by those “associated with” them. |
Guidance and Training Why the Bribery Act is good
