Compliance Illustrated: Anti Bribery
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- Elijah McLaughlin
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1 Compliance Illustrated: Anti Bribery 1. Have you ever been in a situation where you felt you must do something for someone a favor, a gift, a cash payment --in exchange for their agreeing to do business with you? 2. This kind of thing happens to a lot of us, especially when we do business in global settings, and it can be very troubling as we struggle to do what is right and still get business done. 1
2 3. Let s say you are bidding on a large multi-year project for a client outside the US. The main client contact assures you that he can arrange for you to win the contract, but only if you agree to hire his brother's company to work on the project. 4. Do you accept this offer and win this large project for the company, even though it feels unethical and is probably illegal; or do you refuse and risk losing the business and the relationship? It can feel like a no-win situation. 2
3 5. Luckily, by the end of this issue of Compliance Illustrated, you will come away with the tools you need to make the best decision. 6. You ll make the right choice for both yourself and the company, avoid potential legal and disciplinary action, and feel much better in the process. 3
4 7. The first step in avoiding bribery is being able to IDENTIFY it. Bribery means offering or giving something of value to someone in order to get or keep business. 8. This can be in the form of a gift, a cash payment, or a promise of employment or other favors such as the example about promising to give a relative business in exchange for being awarded the contract. 4
5 9. Nearly all countries now have laws designed to fight this corrupt practice. For example, in the U.S. and Europe there are laws that make it illegal for companies to offer or pay money or give gifts to a foreign government official in order to get business. 10. In the U.K. the law goes one step further to prohibit not only bribes to public officials but bribes in purely commercial settings as well. 5
6 11. We must also avoid giving so-called facilitation or grease payments those payments made to obtain or speed up routine government services like clearing customs or hooking up electricity. 12. Laws vary from country to country on their legality, but facilitation payments are against company policy and should not be given. Also, whenever we work with third party agents, we must ensure that we are following our company s third party due diligence policy. 6
7 13. Violating bribery laws carries huge consequences. Individuals go to prison and companies are fined hundreds of millions of dollars and suffer catastrophic damage to their reputation, whether the bribe was given by an employee or a third party agent. 14. Once you know how to identify a bribe or facilitating payment, the next step is avoiding giving them -- while legally and ethically conduct business. 7
8 15. For example, imagine that you are in the office of a foreign customs official who is holding up a major shipment of your product. The official tells you that there will be no problem clearing your shipment, but that it will go much faster if you give him a payment of 500 US dollars in cash. 16. While you cannot give him the cash, you can attempt to get him to reverse his position. Explain that your company s policy prohibits this payment. Ask to speak with his supervisor. 8
9 17. You may also explain that you will need to call our legal department for advice, or even call your embassy or consulate in the region. This kind of action is often enough to cause a corrupt official to back down. 18. Never give a bribe to anyone, unless you feel that your personal safety or that of others depends upon it. No matter what, you must REPORT any incident that involves a bribe or potential bribe to our compliance office. 9
10 19. In summary, avoiding bribery in our business transactions involves IDENTIFYING a corrupt situation, REFUSING to engage in bribery, and REPORTING all incidents to the compliance office. 20. Three simple steps to confidently making the best decision. In the situation involving hiring your contact s brother as a sub-contractor, it should be evident that accepting these terms would be agreeing to give a bribe, and therefore you must decline. 10
11 21. Even though we may lose business in the short-run, in the long-run refusing this offer will preserve our reputation for fair and honest business practices and will help us avoid violating company policy and the law. 22. Now. doesn t that make you feel better already? If you have any questions about global anti-bribery or other compliance issues, please contact our ethics or compliance office. We re here to help. 11
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