The new principles of the UK Anti-bribery Act pose a relatively new threat facing companies in the upcoming years. Companies covered by the new act can now face criminal charges if they neglect to put preventative measures in place. The landscape for global anti-bribery is shifting and companies covered by the UK Bribery Act are being held up to a higher standard than ever before.
The Six Principles for the UK Bribery Act Include:
Risk Assessment
Top level commitment
Due diligence
Clear, Practical and Accessible Policies and Procedures
Effective implementation
Monitoring and review
Globally, costs related to corruption total over $2.5 trillion annually, with over $1 trillion paid in bribes each year. Bribery, extortion, and other corrupt practices add up to 10% of the total cost of doing business globally and up to 25% of the cost of procurement contracts in developing countries.
The cost of failing to have adequate procedures in place can be high, yet in a complex regulatory environment there is often too much exposure with few resources to close the gap. The challenge is compounded for large organizations and global companies with multiple sites and a diverse workforce. However, the UK Anti-bribery Act encourages companies to have proper, preventative procedures in place that, in fact, may serve as a proper defense in case of prosecution.
To learn more download Kaplan EduNeering’s most recent White Paper: The Global Cost of Corruption – A New Anti-Corruption Landscape.
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