ACCA SBL Syllabus A. Leadership - Bribery and Corruption - Notes ^{4 / 4}

Bribery

• = "the offering, giving, receiving or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty."

Bribing another person

You are guilty of this if you:

1. Offer

2. Promise or

3. Give an advantage

   ... to someone who you want to act improperly.

Being bribed

• The recipient is also guilty.

If  a person in your business bribes another personal to give your business an advantage - the business is guilty then too.

How the business can avoid conviction

Must demonstrate that it had adequate procedures (see later) in place designed to prevent bribery.

Practical steps to take

• Small and medium-sized enterprises will inevitably have fewer resources to counter bribery than larger companies.

• Director-level and senior management support.

• Make sure that all senior managers and directors understand that they could be personally liable.

• It is important that senior management lead the anti-bribery culture of the business, especially if it wants to take advantage of the “adequate procedures” defence to the offence of failing to prevent bribery.

Risk assessment

1. Make sure the risks that the business may be exposed to, are understood.

   For example, certain industry sectors (such as construction, energy, oil and gas, defence and aerospace, mining and financial services) and countries present a greater risk as employees are more likely to engage in bribery in these areas.

2. Review how potential customers are entertained, especially those from government agencies or state-owned enterprises or charitable organisations. 

   Routine or inexpensive corporate hospitality is unlikely to be a problem, but have clear guidelines in place that everybody understands.

3. If the business operates in foreign jurisdictions, always check local laws.

4. Think about the types of transactions that the business engages in; who the transactions are with and how they are undertaken.

High- risk transactions include:

• procurement and supply chain management;

• involvement with regulatory relationships (for example, licences or permits); and

• charitable and political contributions.

Dealing with third parties

• Review all relationships with any partners, suppliers and customers. 

  For example, if an agent or distributor uses a bribe to win a contract for the business, the business could be liable.

• Ensure background checks are carried out on any agents or distributors before engaging them.

Policies and procedures

• Review any existing policies and procedures that the business has on preventing bribery and corruption and decide whether they need to be updated.

• If the business operates in a high-risk industry sector or country, consider introducing a compulsory training programme for all staff.

Corruption

• = "the abuse of entrusted power for private gain".