Bribery: even more red tape from Westminster?

A parish in Norfolk has recently looked rather foolish by asking people to stop giving Christmas presents to Council employees.   The Ministry of Justice has attempted to calm down the good folk of Sprowston by suggesting that a supermarket voucher isn’t quite the end of civilisation as we know it.  But, and it’s a big “but”, bribery and corruption isn’t only about arms deals and multi-national companies. 

SMEs – like our law firm, like your own business – can become embroiled in corruption and bribery just as easily and just as criminally.  The latest Bribery Act could soon be costing people their businesses and their freedom.

As you might imagine some straight-forward things are prohibited:  if you take a bribe, or offer/make a bribe, you’re committing a crime.  That applies whether it happens here or abroad.  It can be about a contract with a private company or with a public organisation.  The individual(s) concerned could go to jail for ten years.  They, and their business, can also be fined vast sums of money.  

• ACTION POINT ONE:  DON’T BRIBE ANYONE! 
• ACTION POINT TWO:  DON’T BE BRIBED!                                                                

You may think that this doesn’t apply to your business.  It does.  And that’s because lots of things that we think may be perfectly normal could be regarded as bribery.  Let’s imagine I decide to take six of my favourite clients to the rugby: nice lunch, lots of wine, couple of taxis there, good seats, few more drinkies, taxis home.  Cost to me £900.  Is that bribery?  

Is it:

• A financial advantage to the client?  YES
• Intended to persuade these clients to deal with me?  YES

On the face of it, this could be bribery.  It isn’t as long as I’m only thanking them for past loyalty and the scale of the hospitality etc isn’t unreasonable.  If I’m doing this to try to secure future business (which plainly I would be) then we get into difficult waters.  Again it has to be reasonable in scale.  But if, by doing this, I’m trying to gain an improper advantage (getting onto a tender list, or being chosen over other more suitable suppliers, or whatever) we start to move into murkier waters still.

If instead I don’t take them at all, but give a client those seven tickets, and pay for all of the hospitality etc, is that still reasonable?  What if it was 12 seats in the directors’ box at Hampden?  Four tickets to the Ryder Cup and a helicopter there and back?  At the other end of the scale, a hamper at Christmas?  A bottle of whisky?  A lift? At some point this becomes unreasonable even though it’s public and above board.

That though isn’t the worst bit:  every business must have in place adequate safeguards to prevent bribery.  If there are no safeguards, and someone takes or makes a bribe, the business is just as guilty as the individuals concerned.  And then comes the time and money wasted in court.  And the fines for vast sums of money.  If you don’t have any safeguards in place, speak to a business lawyer urgently.

• ACTION POINT THREE:  HAVE SAFEGUARDS AGAINST BRIBERY!                   

Giving something – anything – can be seen as a bribe.  Be aware that you’re doing it.  Be mindful of the scale of what you’re doing.  And have systems in place so that what you give, or what you receive, happens against a background of rules to safeguard your business.  And take some advice before the police start knocking at your door.

• ACTION POINT FOUR:  DISCUSS WHAT YOU DO WITH A BUSINESS LAWYER NOW!

Contact Alan D Stalker to discuss any issues this raises about your business.