Pictured above: Christopher Hallam, senior associate at
Robinsons Solicitors
The new Bribery Act came into force on 1 July 2011, yet a recent
survey* found that three quarters of small businesses do not
understand how it will affect their businesses.
Christopher Hallam, senior associate at Robinsons Solicitors, in
Friar Gate, is warning local business leaders that they need to
tighten their compliance procedures or face falling foul of the new
law.
The Bribery Act - described as the one of the most rigorous
anti-corruption laws in the world - aims to stamp out corruption,
making it illegal to bribe someone, accept a bribe, bribe a foreign
public official and, for businesses, the new offence of failing to
prevent bribery. A bribe is something offered to induce or reward
business advantage.
The Act applies to companies and businesses operating not only
in the United Kingdom but UK businesses operating overseas and
overseas operations operating in the UK as well. Companies
are liable for the actions of employees whether in the UK or
elsewhere.
Mr Hallam explained that in order to mitigate risk of
prosecution, local businesses should ensure they have adequate
procedures in place to safeguard against corruption. He said: "For
some businesses, this may mean drawing up new procedures, whilst
for other firms it will simply mean amending or updating their
existing procedures to encompass the new law."
Businesses will need to have policies on gifts, hospitality and
promotional spend financial and commercial controls and whistle
blowing as well as recruitment and employee guidelines on
anti-bribery measures together with information about how these
measures will be enforced.
They should also review contracts with customers, suppliers,
wholesalers, retailers, consultants, agents, distributors and
franchisees. And they should review joint venture agreements,
commission agreements and agreements with sub-contractors with a
view to incorporating anti-bribery and anti-corruption laws.
The penalties for failing to comply with the new Act include a
maximum 10 years prison term for individuals and unlimited fines
for companies. Directors may be liable for disqualification and
companies could be barred from seeking public contracts.
"The introduction of the Act was delayed while the Government
drew up guidelines to clarify the situation regarding hospitality,
promotional and other business expenditure," said Mr Hallam.
"So long as the corporate hospitality is designed as a PR
exercise, you shouldn't fall foul of the law - providing it is both
reasonable and proportionate and not designed to lever financial or
business advantage.
"Quite simply, organisations should adopt a risk-based approach
with regards to reviewing and updating their procedures in order to
comply with the new law. These should then be communicated to
employees, so they know exactly what to do if they are ever
approached to make or accept a bribe."
Robinsons Solicitors is one of the best known law firms
operating in the East Midlands with a clear focus upon providing
high levels of client care. Robinsons offers a comprehensive range
of legal services spanning across both the commercial and private
client sectors.
With offices in Derby and Ilkeston, the firm is managed by a
team of eight Principals, who are supported by over 50 members of
staff - each of whom share the same vision of providing the highest
level of professionalism and client care.
* Sage UK Omnibus survey of 1,050 SMEs from its customer
base.