Published on Wednesday, 15 June 2011 00:00
From 1 July 2011 another piece of legislation comes into force which may have an effect on businesses operating in both the UK and across the world. The Bribery Act has been introduced to provide guidance to businesses, increase the penalties for some existing offences, and to criminalise certain other actions.
A large number of businesses operating overseas have, for many years, as a norm paid government departments or individual’s sums of money to ensure applications are dealt with expediently. This practice now falls under the Bribery Act and, depending upon the particular circumstances, these actions may now be illegal.
From a small business perspective operating solely in the UK, the Bribery Act does impose duties on companies and business owners to guard against instances that could be construed as giving or receiving a bribe. Generally, the guidance suggests that a risk based approach be adopted, with policies and procedures being put into place to cover likely situations.
The Bribery Act 2010 Guidance specifies six guiding principles, and goes on to provide commentary on each to further clarify and explain. We have reproduced the six principles here as they are a useful summary.
Principle 1 : Proportionate procedures
A commercial organisation’s procedures to prevent bribery by persons associated with it are proportionate to the bribery risks it faces and to the nature, scale and complexity of the commercial organisation’s activities. They are also clear, practical, accessible, effectively implemented and enforced.
Principle 2 : Top-level commitment
The top-level management of a commercial organisation (be it a board of directors, the owners or any other equivalent body or person) are committed to preventing bribery by persons associated with it. They foster a culture within the organisation in which bribery is never acceptable.
Principle 3 : Risk Assessment
The commercial organisation assesses the nature and extent of its exposure to potential external and internal risks of bribery on its behalf by persons associated with it. The assessment is periodic, informed and documented.
Principle 4 : Due diligence
The commercial organisation applies due diligence procedures, taking a proportionate and risk based approach, in respect of persons who perform or will perform services for or on behalf of the organisation, in order to mitigate identified bribery risks.
Principle 5 : Communication (including training)
The commercial organisation seeks to ensure that its bribery prevention policies and procedures are embedded and understood throughout the organisation through internal and external communication, including training, that is proportionate to the risks it faces.
Principle 6 : Monitoring and review
The commercial organisation monitors and reviews procedures designed to prevent bribery by persons associated with it and makes improvements where necessary.
If you wish to read the full guidance document then it can be accessed here:
http://www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf
If you would like to discuss your particular circumstances then please contact us on (01635) 884270. Or email us at info@opusaccounting.co.uk
