Bribery

Under the Bribery Act 2010, bribery refers to the offering, giving, receiving, or soliciting of any 'financial or other advantage' to induce or reward the improper performance of a public function or business activity.
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Definition: Bribery is the crime of offering, giving, receiving, or soliciting something of value as a way to influence the actions of an individual holding a public or legal duty. Under the Bribery Act 2010, this includes any ‘financial or other advantage’ intended to induce ‘improper’ performance of any public role or business activity. Such actions are considered ‘improper’ if they breach a reasonable expectation of good faith, impartiality, or proper conduct by someone in a trusted position.

Examples:

  1. Corporate Bribery:

    • A commercial company offers lavish gifts to a government official to secure a valuable contract. Under the Bribery Act 2010, this would constitute bribery because it influences the official to act improperly.

  2. Bribery in International Business:

    • A business executive offers payments to foreign public officials to facilitate expeditions of contracts or permits. Such acts are considered bribery under both domestic laws and international anti-corruption conventions.

  3. Accepting Bribes:

    • A procurement officer accepts a bribe from a supplier to favor them in a tender process. This action breaches the reasonable expectation of impartiality and is an example of accepting bribes.

Frequently Asked Questions:

  1. What constitutes ‘improper performance’ under the Bribery Act 2010?

    • Improper performance occurs when a function, duty, or activity is performed inadequately or dishonestly, based on reasonable expectations of impartiality, good faith, or trust.

  2. Who is considered an ‘associated person’?

    • An ‘associated person’ could be an employee, agent, subsidiary, or any other entity performing services on behalf of the organization.

  3. Can a commercial organization be guilty of bribery if they have no direct knowledge of it?

    • Yes, under the Act, organizations can be liable if they fail to prevent bribery by associated persons unless they can demonstrate ‘adequate procedures’ to prevent such acts.

  4. What are ‘adequate procedures’ to prevent bribery?

    • Adequate procedures might include conducting risk assessments, implementing anti-bribery policies, providing training and communication, conducting due diligence, and monitoring and reviewing practices regularly.

  5. What are the penalties for violating the Bribery Act 2010?

    • Individuals can face up to 10 years of imprisonment and/or an unlimited fine. Organizations can also receive unlimited fines.

Related Terms:

  • Corruption:

    • Generally refers to dishonesty or fraudulent conduct by those in power, typically involving bribery.

  • Kickback:

    • A form of negotiated bribery where a commission is paid to the bribe-taker in return for services rendered.

  • Facilitation Payment:

    • Small payments made to expedite routine governmental actions. These are generally viewed as bribes under the Bribery Act 2010.

Online References:

Suggested Books for Further Studies:

  1. “Bribery and Corruption: How to Be an Impeccable Custodian of Your Company’s Reputation” by Michael V. Pocalyko
  2. “Corruption and the Global Economy” edited by Kimberly Ann Elliott
  3. “Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization” by Andrew Crane and Dirk Matten

Accounting Basics: “Bribery” Fundamentals Quiz

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Thank you for diving deeply into the comprehensive examination of bribery within the framework of international and UK law. Your continued efforts to understand and manage legal compliance and corporate governance are highly commendable!

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