1 April 2011

Following delays the government has finally published guidance on how SMEs can prove they have ‘adequate procedures’ for preventing bribery. When considering their procedures organisations should adopt 6 principles:

• Proportionality: Actions should be proportionate to the risks faced;

• Top Level Commitment: Senior management are responsible to ensure the business is acting ethically and without bribery and should establish a culture within the organisation in which bribery is never acceptable;

• Risk Assessment: Cover the market being operated in and the individuals being dealt with;

• Due Diligence: Ensure you know exactly who you deal with in the supply chain including agents, intermediaries and joint ventures;

• Communication:Ensure policies and procedures are communicated to employees and others who will perform services on your behalf.

• Monitoring and review:Institute mechanisms to ensure compliance with the policies and procedures. Failure to comply with the Act could lead to prosecution with penalties of up to 10 years imprisonment for individuals and an unlimited fine for companies.