Bribery and corruption can be very damaging to businesses. Sometimes, the harm done is so severe that organisations cannot recover.
It's vital measures are in place to mitigate the risks and preserve working relationships and reputations that take many years to build.
With 40 years' experience delivering HR services, Peninsula can offer a wide range of support for businesses of all sizes.
One of the areas we can assist with is bribery and corruption. Our guide answers key questions and offers essentail resources, including an anti-bribery and corruption policy template that you can download for free.
What is bribery and corruption?
Typically, bribery and corruption centres around financial crimes carried out by a person in a position of power and trust, usually with the aim to benefit themselves or an organisation.
Are bribery and corruption the same?
Bribery and corruption, whilst sharing a relationship, are slightly different. Collectively, they’re considered as illegal or unethical acts driven by an intent of influencing decisions or actions for personal or company gain.
What is bribery?
The definition of bribery is the giving or receiving of a reward in return for a dishonest or improper act. Bribery includes the following:
Bribing someone: Offering, promising or giving a reward to someone to convince them to do something.
Being bribed: Receiving, agreeing to receive, or requesting a reward in return for deliberately doing an improper function.
Bribing a foreign public official: Attempting to influence a foreign public official to win business or benefit from a scenario despite the law preventing the official to be swayed.
Failure to stop bribery: When businesses don’t prevent individuals operating on their behalf being privy to bribery.
What types of bribery are there?
The Bribery Act 2010 states that there are several types of bribery, including active bribery, passive bribery, facilitation payments, and commercial bribery.
What is active bribery?
Active bribery generally involves bribing another person. It happens when someone offers, promises, or provides an advantage to another person in order for them to perform a function or activity.
What is passive bribery?
Passive bribery is when an advantage in return for an improperly performed function or activity is accepted or agreed to be accepted.
What are facilitation payments?
Facilitation payments are usually small, unofficial payments made to accelerate a standard process. Irrespective of where the payment is made, be it in the UK or oversea, the Bribery Act 2010 renders it unlawful.
What is commercial bribery?
Exists in a business context and applies to a company’s functions, be it public or private, acts by employees, agents or third parties.
Is bribery illegal?
As per the Bribery Act 2010, bribery, could committed in the UK or overseas. Specifically, offences may be prosecuted in the following instances:
Bribery was committed by a British national or corporate or individual who is resident in the UK regardless of where the offence took place.
Any act or omission that forms part of the bribery is committed in the UK.
The Act also sets out stringent penalties. Individuals could face imprisonment, whilst businesses may be subject to fines.
What’s the maximum prison sentence for bribery?
Under the Bribery Act 2010, the maximum prison sentence a person could receive if guilty of bribery is ten years.
What’s the maximum fine for anyone convicted of bribery
There’s no cap. This means businesses embroiled in bribery cases could be subject to unlimited fines if convicted.
How do you define corruption?
Corruption covers bribery and other unethical or unlawful conduct concerning the abuse of power, position, or resources to obtain an unfair advantage. Here are examples:
Fraudulent practices
Abusing public funds
Nepotism or favouritism
Exploitation of authority
How to prevent bribery and corruption in your business
If a company is found to be guilty of bribery and corruption, the consequences are severe. As discussed, the maximum prison sentence for bribery is ten years, whilst a fine could be unlimited.
Compounding this, companies that break laws also break trust, and that’s often irreparable. There are means to mitigate bribery and corruption, for example:
Implement an anti-bribery and corruption policy
Develop a comprehensive anti-bribery policy outlining the company’s commitment to eliminating bribery and corruption.
Policies for anti-bribery and corruption must be accessible for all employees—especially for those whose responsibilities involve conducting services on behalf of the business.
Clearly state in contracts of employment that bribery and corruption is viewed as gross misconduct, and those entangled in cases may be dismissed.
Download your employment contract template for free and discover what a legally-watertight staff contract looks like.
Have steps for gifts and hospitality
In employee handbooks, outline what kinds of gift-giving and hospitality are permitted. Training should encompass management the offers of gifts and hospitality and how it might be classified as bribery.
Keeping a register of gifts and hospitality and their respective estimated values provides an additional layer of clarity and protection.
Provide anti-bribery and corruption training
Employees, particularly anyone in customer-facing roles, or those who deal with suppliers, should be adept in identifying and eradicating bribery risks.
When enrolling new starters, anti-bribery and corruption training should be included as part of their induction. Topics discussed should include but not be limited to the bribery meaning and types of bribery.
Final say: The impact of bribery and corruption for businesses
Whether businesses are handed an unlimited fine or a company representative receives a custodial sentence, a conviction of bribery symbolises mistrust.
Years of demanding work cultivating culture and a strong brand image can be undone with just one act of bribery and corruption.
However, as our guide explains, there are ways companies can ensure they avoid the consequences that come with these illegal acts.
Get an anti-bribery and corruption policy with Peninsula
Simply download your free anti-bribery and corruption policy template today and ensure your business isn’t associated with bribery and corruption.
Peninsula specialises in providing HR support for UK businesses. With over 40 years’ experience, we’ve helped thousands of companies achieve legal compliance.
Partnering with us provides comprehensive protection. You’ll get:
Access to 24/7 HR advice
Support with your HR documentation
Market-leading HR software
Should you have any questions, don’t hesitate to contact us.
