Understanding and Managing Bribery

Bribery and preventing it are a core part of identifying and managing conflicts of interests. Unlike many other types of interests, or activities that can conflict with professional standards, bribery is recognised as a form of corruption

The Bribery Act 2010 is a key piece of legislation in the UK that combats bribery both domestically and internationally. It outlines various offences related to offering, promising, giving, or requesting an advantage to influence someone improperly in the performance of their duties. Bribery is closely linked to fraud, and the management of gifts, sponsorship and hospitality.

Here’s a breakdown of different types of bribery with examples to illustrate the Act’s reach:

Active Bribery (Offering or Giving Bribes):

This involves a person (the “briber”) offering, promising, or giving a financial or other advantage to another person (the “bribe recipient”). This is with the intention of inducing them to perform a relevant function in a way that gives and advantage to the briber.

• Example: A company executive offers a luxury vacation to a government official. In exchange they expedite a permit for a new construction project. (This falls under Section 1 of the Bribery Act)

Passive Bribery (Accepting or Requesting Bribes):

This involves the recipient soliciting, agreeing to receive, or accepting an advantage as a reward for performing a relevant function improperly.

• Example: A procurement manager in a public agency hints to potential vendors that their bids would be looked upon more favourably if they include “consulting fees” for the manager. (This falls under Section 2 of the Bribery Act)

Bribery of Foreign Public Officials:

The Act also prohibits offering bribes to foreign public officials to gain a business advantage in another country.

• Example: A pharmaceutical company offers bribes to doctors in a foreign country to prescribe their brand-name drugs over cheaper generic alternatives. (This falls under Section 6 of the Bribery Act)

It is rare for a UK act to apply to behaviour in other countries. However, over the years “facilitation payments” have been treated as a normal business expenditure in some parts of the world. The UK Government was keen to address businesses being caught up in corrupt practices.

Failing to Prevent Bribery:

The Act holds organisations liable for failing to prevent bribery by a person associated with them (e.g., employee, agent, subsidiary). This means companies must have adequate procedures in place to prevent and detect bribery.

• Example: A construction company turns a blind eye to employees offering bribes to local officials to overlook safety violations at a building site. The company could be held liable under Section 7 of the Bribery Act for failing to prevent bribery.

Additional Considerations:

Bribes can come in various forms, including money, gifts, hospitality (luxury travel, meals), or promises of future benefits (jobs, contracts). The Act doesn’t specify a minimum value for a bribe; any advantage offered to influence someone improperly can be considered a bribe, and therefore an offence under the Act.

However, the Act requires proof of intent to act improperly. Someone offering a gift to a business associate wouldn’t necessarily constitute bribery. The key is that there’s no expectation of influencing their business decisions.

What to Do?

In order to protect your organisation and colleagues from breaching the Act you will need to:

• ensure your conflicts of interests policies and procedures cover bribes and bribery. If your organisation is in industries such as health or social care, finance (e.g. accounting), law or procurement it might be sensible to have a stand alone anti-bribery policy

• make sure colleagues understand what bribery is, and the standards of conduct they are expected to show

• give people a mechanism to report the offer of a bribe, or if they suspect bribery is taking place

• act speedily if you suspect bribery is or may be taking place

These procedures are especially important if you remember your duty to prevent bribery where reasonably possible.

By understanding these different types of bribery and the reach of the Act, organisations and individuals can operate with greater transparency and avoid the legal and reputational risks associated with bribery.

Further Reading and References

Click on each line to find out more:

• Different Types of Fraud
• Mistakes with Conflicts of Interests
• Conflicts of Interests and Whistleblowing
• Bribery Act 2o1o

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