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No Place for Bribery_Skillcast Training Presentation.pptx
- 1. No Place forBribery
- 2. 2 General DataProtection Regulation (GDPR) Learning Objectives What is bribery? Anti-bribery law Gifts and hospitality Third parties and foreign public officials Our company’s anti-bribery policy
- 3. 3 General DataProtection Regulation (GDPR) What is Bribery? “…the offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust...” - Transparency International
- 4. 4 General DataProtection Regulation (GDPR) The Law and Bribery • The UK Bribery Act 2010 • 4 offences • Extra-territorial reach In the US, bribery is prohibited under the Foreign and Corrupt Practices Act (FCPA)
- 5. 5 General DataProtection Regulation (GDPR) 4 Offences • Paying or offering to pay a bribe (active bribery) • Receiving a bribe, favour or other advantage (passive bribery) • Bribing a foreign public official • Failing to prevent bribery
- 6. 6 General DataProtection Regulation (GDPR) Penalties • Individuals found guilty of bribery can face up to 10 years' imprisonment and unlimited fines • Companies convicted of bribery or failing to have adequate controls to prevent it can face unlimited fines • Directors and senior officers of companies convicted of bribery or failing to prevent it can themselves be found guilty and punished accordingly
- 7. 7 General DataProtection Regulation (GDPR) When it goes wrong Rolls-Royce fined £671m for bribery Housing manager jailed for 3½ years for taking bribes from building contractors Goodyear fined $16m for failing to prevent bribery Petrobras faces $2.5bn fine for bribery Glaxo pays $20m to settle bribery charges
- 8. 8 General DataProtection Regulation (GDPR) You make the call: Is it a breach or not? I was offered tickets to the big game – I knew why but I didn’t refuse We met all the official’s travel costs, including those of her spouse In exchange for the contract, he sorted out a job for my son Breach No Breach Breach No Breach Breach No Breach
- 9. 9 General DataProtection Regulation (GDPR) Gifts and hospitality Acceptable: • Bona fide hospitality and promotional expenditure • To improve our company image, present products or services, establish cordial relations with clients Not acceptable: × Any gift, hospitality or expense that seeks to influence the recipient into performing their function improperly
- 10. 10 General DataProtection Regulation (GDPR) Key criteria • Is it legitimate? • Is it proportionate? • Is it transparent? Timing and context are key!
- 11. 11 General DataProtection Regulation (GDPR) You make the call: Is it True or False? Timing is everything – we must be extra careful if a contract is up for renewal It’s OK to offer routine hospitality to clients provided it’s nothing lavish If a supplier offers generous hospitality, it’s courteous to accept – it’s not illegal True False True False True False
- 12. 12 General DataProtection Regulation (GDPR) Opinion: What do you think? Gift-giving can be symbolic in some cultures. If we decline, we risk causing real offence. There’s no problem offering token gifts. And, where gifts are accepted for reasons of etiquette, they can be declared and given to charity.
- 13. 13 General DataProtection Regulation (GDPR) Donations and sponsorship • Good causes = corporate social responsibility • RISKY – must not be used as bribes • Follow our policy • Don’t sponsor activities involving foreign public officials
- 14. 14 General DataProtection Regulation (GDPR) Opinion: What do you think? A client asked us to sponsor her son’s sports team. Surely that’s allowed? We were asked to make a donation to a humanitarian charity run by a government official’s spouse. That’s ok, isn’t it?
- 15. 15 General DataProtection Regulation (GDPR) Third Parties So our agent’s invoices were higher than expected? How were we to know he was concealing bribes in this way? There has to be some trust - we can’t watch over agents 24/7 • Anti-bribery laws apply to agents, intermediaries, consultants and associates too • Ignorance is no excuse – we can’t outsource our responsibility • Implement adequate systems and controls
- 16. 16 General DataProtection Regulation (GDPR) Who is an associate? One of our employees A temporary employee or someone on a short-term contract A company that’s sold us goods, with no ongoing service An offshore subsidiary An industry body of which we’re a member A contractor engaged by a colleague NO YES YES YES NO YES
- 17. 17 General DataProtection Regulation (GDPR) Red flags and third parties Activities Credentials Payments Links Territory Co-operation
- 18. 18 General DataProtection Regulation (GDPR) You make the call: Is it True or False? “We can’t be held responsible for what our agents or intermediaries do miles away from the UK” What do you think? True False
- 19. 19 General DataProtection Regulation (GDPR) Bribery and foreign public officials Criminal offence: • Offering, promising or giving a financial or other advantage to a foreign public official or another person at their request • With the intent to influence them; and • Obtain or return business or an advantage in the conduct of business
- 20. 20 General DataProtection Regulation (GDPR) Foreign public officials According to the UK Bribery Act, a "foreign public official" is: • Any person who holds a legislative, administrative or judicial position in any country outside the UK • Any person who exercises a public function for or on behalf of a country outside the UK, or for any public agency or public enterprise of that country • Any official or agent of a public international organisation
- 21. 21 General DataProtection Regulation (GDPR) Who is a foreign public official? A judge in an Italian court A manager at a French state-owned entity A Hong Kong customs official A housing manager at a UK council An ambassador to the United Nations The Governor of the Bank of England NO YES YES YES NO YES
- 22. 22 General DataProtection Regulation (GDPR) Facilitation Payments “…small unofficial payments (usually less than £100) made to secure or speed up the performance of a routine function to which you’re entitled anyway…” – Not to be confused with a legitimate fast-track service
- 23. 23 General DataProtection Regulation (GDPR) Facilitation payments: exceptions 1. Where you are under duress and there is a real risk to ‘life, limb or liberty’ 2. Make the payment and report it to your manager or Ethics/Compliance/Legal
- 24. 24 General DataProtection Regulation (GDPR) OurAnti-Bribery Policy 1. Providing information and training – raising awareness 2. Implementing systems and controls 3. Insisting third parties and suppliers sign up to our anti-bribery code 4. Requiring everyone to read and implement our Anti-Bribery Policy
- 25. 25 General DataProtection Regulation (GDPR) Do Read our Company's Anti-Bribery Policy – make sure you understand our rules and know what to do Take particular care when offering or receiving gifts or hospitality – ensure they are declared in our Gifts Register Be vigilant and watch out for red flags Conduct due diligence on all intermediaries and third parties before engagement Report concerns or wrongdoing as soon as possible
- 26. 26 General DataProtection Regulation (GDPR) Don’t x Offer any gift or hospitality which may be seen as an attempt to gain undue influence x Offer any gifts or hospitality during a tender, contract renewal or to a foreign public official x Accept gifts or hospitality which exceed our thresholds x Use vouchers or discount coupons to circumvent the rules x Make donations or sponsor events which may be perceived as hidden bribes x Overlook red flags just to get the deal done
Editor's Notes
- #2 Welcome to this session on No place for bribery. Thank you for attending. This session should take us around 20 mins.
- #3 In this session we’ll look at: What is bribery? Anti-bribery law Gifts and hospitality Third parties and foreign public officials Our company’s anti-bribery policy
- #4 [Ask delegates] What is bribery? [Lead a discussion and flipchart suggestions, before clicking to reveal the answer] According to Transparency International, bribery is: “…the offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust...” Inducements can take the form of gifts, loans, fees, rewards or other advantages (taxes, services, donations, etc). So bribery is not only about money exchanged in brown envelopes or wired to secret accounts. A bribe can be anything of value to the person being bribed, such as a holiday for a purchasing manager disguised as a business trip.
- #5 The UK Bribery Act is one of the toughest anti-bribery laws in the world. It applies to all employees in public and private organisations. And, it also has extra-territorial reach – if a company is based in the UK, it can be prosecuted for bribery for offences committed anywhere in the world. In the US, bribery is also prohibited under the Foreign and Corrupt Practices Act (FCPA).
- #6 There are four offences under the UK Bribery Act: 1. Paying or offering to pay a bribe (active bribery) To offer, promise or give a financial or other advantage to induce someone to perform their function or activity 'improperly' 2. Receiving a bribe, favour or some other advantage (passive bribery) To request, agree to receive or accept a financial or other advantage for performing your function or activity 'improperly' 3. Bribing a foreign public official To offer, promise or give a financial or other advantage to induce a foreign public official to perform their function or activity 'improperly' 4. Failing to prevent bribery A failure to implement adequate procedures to prevent our employees and third parties associated with us from paying bribes on our behalf.
- #7 There are severe penalties for anyone found guilty of bribery and also for companies that fail to prevent bribery.
- #8 Even though the Act was introduced some time ago, companies still get it wrong. Here are some examples of cases that have made the headlines recently. [As an add-on, discuss other recent cases, if required.]
- #9 Look at this example and decide whether it is a breach or not. [Show each one in turn and allow time for reading before clicking Next.]
- #10 Bona fide hospitality and promotional expenditure to improve our company's image, present products and services, or establish cordial relations with clients is completely legitimate, provided it is reasonable and proportionate. However, any gift, hospitality or expense that seeks to influence the recipient into performing their function improperly would be considered a bribe.
- #11 Make sure that any gifts or hospitality (including meals and entertainment) meets our three criteria: It's legitimate - there's a legitimate business purpose It's proportionate - the gift or expense is reasonable and not unduly lavish It's transparent - it's declared in our Gifts and Hospitality Register and your manager is informed Look at the timing and context before offering or receiving gifts or hospitality - ie job vacancies, tendering process, contract negotiations, etc. You’ll also need to find out about any thresholds or limits. [Before delivering this session, find out about gift limits or thresholds in our company.] If you’re not sure, get advice from your manager or Compliance first.
- #12 Look at this example and decide whether it is True or False. [Show each one in turn and allow time for reading before clicking Next.]
- #13 [Hold a discussion with delegates, canvassing opinion before continuing.] [Before delivery, find out how our company handles this and include it here.]
- #14 As a part of our commitment to corporate social responsibility, we may sometimes make donations and sponsor activities and events. But, we must ensure that such donations and sponsorships are not used as, or perceived to be, bribes. Occasionally, you may be asked by a client, politician or official to support a good cause or sponsor something that they are involved with. Such situations present risks and must be managed according to our policies and procedures to ensure: All donations, sponsorships and contributions are strictly in line with our policies We never contribute to or sponsor organisations where a client or potential client is involved or we have a current bid or contract Further, we must never sponsor any activity in which a foreign public official has an interest.
- #15 [Hold a discussion with delegates, canvassing opinion before continuing.]
- #16 We must ensure that third parties (including agents, intermediaries, consultants or associates) acting on our behalf are not involved in bribery. Ignorance is no excuse! We can’t outsource our responsibility here. If anyone associated with our company pays bribes via intermediaries, we face prosecution. Our only defence is whether we can show that we had implemented adequate procedures to prevent bribery in the first place.
- #17 Who is classed as an associate? [Hold a discussion, if required, before clicking next.]
- #18 What are the red flags when working with third parties? What should you look for? 1. Activities Performs no service other than 'facilitating' the deal; operates as a sole proprietor or consultant rather than a business; has an unusual business structure or uses a virtual office 2. Credentials Has no track record in the industry in which it operates; has been subject to criminal proceedings or has a poor reputation; no evidence to back up claims; lacks the facilities or resources to perform the work 3. Payments Requests that payments are made to an offshore entity; charges excessive fees or commissions relative to market norms, requires advance or cash payments; requests payments to more than one account, insists on urgency and pressures you to make early payments 4. Links Associated with or recommended by a foreign public official; seems able to bypass legal or bureaucratic hurdles with no questions asked; claims to have connections that can win deals or get permits; makes large or regular political donations; insists on meetings without the presence of our representatives; a government official demands that we only deal with a particular person 5. Territory Operates in a country or territory with perceived high corruption (as indicated on the TI Corruption Perceptions Index) or in a sector where the support of public officials is imperative 6. Co-operation Refuses to warrant past compliance or sign up to ABAC policies, to confirm its identity openly or insists on confidentiality, or to answer due diligence enquiries or allow audit clauses in contracts
- #19 Take a look at this example and decide whether the statement is true or not. [Allow for thinking time before clicking next] This is False. Under the UK Bribery Act, companies are responsible for the actions of all employees, agents, contractors or third parties engaged by them. Companies must ensure that those appointed comply with anti-bribery laws wherever they operate.
- #20 Under the UK Bribery Act, there is a specific criminal offence of bribing foreign public officials. This occurs if a person offers, promises or gives a financial or other advantage: to a foreign public official or to another person at the foreign public official's request with the intent to influence the foreign public official, and obtain or retain business or an advantage in the conduct of business.
- #21 [Ask delegates] Who is a foreign public official? According to the UK Bribery Act, a "foreign public official" is: Any person who holds a legislative, administrative or judicial position of any kind, whether appointed or elected, in any country outside the UK Any person who exercises a public function (i) for or on behalf of a country outside the UK, or (ii) for any public agency or public enterprise of that country Any official or agent of a public international organisation, such as the UN, International Monetary Fund or the World Bank.
- #22 Who is a foreign public official? [Discuss and give examples before clicking next.]
- #23 In some countries, you may be asked by public officials for small unofficial payments to secure or speed up the performance of a routine function to which you're entitled anyway, eg the processing of a visa, the granting of a licence, unloading cargo, etc. These are called 'facilitation payments' or grease payments. Note: Facilitation payments should not be confused with bona fide payments made to take advantage of a legitimate fast-track process available from the government.
- #24 Such payments are regarded as bribes under the UK Bribery Act and, consequently, you are prohibited from making them, irrespective of delays, refusal of service or any other inconvenience caused. The only circumstance in which it is OK to make these unofficial payments is when you are under duress, ie where there is a real risk to 'life, limb or liberty'. If you or your companions are under immediate physical threat, put safety first, make the payment and report it immediately to your manager or our Ethics/Compliance/Legal team.
- #25 Our Anti-Bribery Policy sets out our rules, processes and procedures which are designed to combat bribery and corruption. We have a zero-tolerance approach to bribery and tackle it by: Providing information and training – raising awareness Implementing systems and controls to combat bribery – eg having a Gifts Register and setting thresholds Insisting third parties and suppliers sign up to our anti-bribery code Requiring everyone to read and implement our Anti-Bribery Policy [As an add-on, provide everyone with a copy of your Anti-Bribery Policy and explain the key points, highlighting key contacts.]
- #26 We can’t do this alone. Here's what you should do: Read our Company's Anti-Bribery Policy – make sure you understand our rules and know what to do Take particular care when offering or receiving gifts or hospitality – ensure all are declared in our Gifts Register Be vigilant and watch out for red flags Conduct due diligence on all intermediaries and third parties before engagement Report concerns or wrongdoing as soon as possible.
- #27 Don't: Offer any gift or hospitality which may be seen as an attempt to gain undue influence Offer any gifts or hospitality during a tender, contract renewal or to a foreign public official Accept gifts or hospitality which exceed our thresholds Use vouchers or discount coupons to circumvent the rules Make donations or sponsor events which may be perceived as hidden bribes Overlook red flags just to get the deal done