Friday, November 12, 2010

Do You Use Bribes to Secure Business?

Your answer to the question in the title is probably 'no'.

But from April next year it might not be so clear, especially if you or your company provide any form of corporate hospitality as part of an export business. Your firm will also be responsible for the behaviour of people acting on your behalf, which means you need to be doubly careful.

The purpose the of Bribery Act 2010, which takes effect from April 2011, is to clear up the current mess of legislation under which people and firms are currently prosecuted for bribery. It's also an attempt to clean up what the government calls an "increasingly sophisticated, cross-border use of bribery in the modern world."

Businesses of all sizes are concerned about the impact of this legislation. David Frost, director-general of the British Chambers of Commerce warned that the new law could have a major impact on small businesses. He's reported in the Telegraph.co.uk as saying: "Where small businesses are exporting and are using an agent or third party, how will they ensure that everything is above board?"

The Federation of Small Businesses wants 'specific' guidance for firms with less than five staff. And the Confederation of British Industry (CBI) wants the government to clarify the rules on corporate hospitality.

Firms and individuals will need to take care that they are not breaking the new rules. The Serious Fraud Office has set up a special unit to deal with bribery and the new law will result in a new focus.

So even if your answer at the start of this article was 'no', and you don't think there's even a risk that bribery is going on, it would be wise to have a stated policy of zero-tolerance. And if you're working with people where you believe there's a real risk of bribes changing hands it might a good time to find alternative ways of doing business.