Anti-bribery & corruption – 5 things to consider

Are you completely aware of how anti-bribery and corruption can impact you and your business? We’ve put together 5 areas that you may what to consider.

For more information or to talk further about anti-bribery and corruption call us on 01752 697 370

  1. Permits & Approvals

Sadly, those in the construction industry will have heard stories of public officials in all levels requiring bribes to be paid for construction permits, licenses, planning permissions and the like. High levels of regulation and the requirement for such permissions from government increases this risk factor.

……Have a think about your processes for getting a permit and how that could be viewed from an outside perspective

  1. Procurement

Procurement is one of the biggest areas of internal weakness to bribery and corruption risk for all businesses. The procurement process, if not effectively managed, creates windows of opportunity for illicit payments made both to your own employees (who may, for example, be bribed to use one supplier over another) or by your employees to others by mechanisms such as fake invoices and credit notes to cover their tracks. Aside from the corruption issue itself, such problems will affect the quality and value of the supplies procured, since the bribes will bias the selection of the best product for the job.

……Have a think about that big sporting event and hospitality provided by your biggest contractor

  1. Kickbacks to main and subcontractors

Passing kickbacks and secret commissions to main contractors and subcontractors may be considered normal practice in a region or country and not always illegal or anti-competitive. However, secret, undisclosed and unrecorded payments are all bribery and corruption risk areas for a business, as they are liable to distort the market and the price of goods and services.

……Have a think about that case of wine your favourite contractor send you at Christmas.

  1. Cost-cutting on building materials

There is always a risk in construction projects that sub-standard construction material will be used in order to cut cost on buildings. This is particularly the case where there is bribery and corruption, which diverts the funds otherwise available for sourcing materials to line pockets. This may then lead to a knock-on effect through the use of bribes to health and safety personnel in order to approve defective or poor quality materials.

……Have a think about your quality control processes

  1. Third-party intermediaries and unlawful subcontracting

Companies working in new markets are likely to be reliant initially on agents and introducers to get things done. Such companies may not have their normal ability to oversee the project and may have no direct contact with the end-user. This is a high-risk factor, as it creates opportunities for things to happen below the radar, such as unlawful subcontracting.

……Have a think about how your supply chain passes these expectations down the chain