1st July 2011 marks an important day in the drive to improve standards of business conduct in the private and public sectors in the UK. On 1st July the Bribery Act 2010 comes into full force and with it a set of tough requirements and some frankly scarey potential penalties. With the Bribery Act in mind, can eLearning be a useful tool in improving business conduct?
In short, the Act puts a requirement on all organisations which operate in the UK to behave properly with particular regard to that tacky and shady world of bribery and corruption. In doing so it seeks to improve and strengthen good business practice and make the UK a better environment for trade and a fairer one for all public sector activities.
This blog carries excerpts of recent conversations between Tim Buff the CEO of CM Group and James Vine, the leading barrister who specialises in the Bribery Act, discussing why the Bribery Act is important to all UK based organisations and how best to communicate the appropriate details of the Act to their staff:
Tim Buff: “There have been some very high profile bribery cases hitting the news in recent years – is that why we have this legislation?”
James Vine: “Partly – yes. There’s been considerable embarrassment about some major UK companies doing things they shouldn’t to gain business in overseas markets. But there has also been a long standing awareness of a problem across different parts of society, anything from Planning Approval processes to contract allocation to private sector business deals. So as the Authorities examined this area, the scope of the Act grew and now encompasses every organisation, large and small. The OECD has also been exerting pressure on the Government for some years to introduce effective anti-bribery legislation.”
James Vine is a leading barrister and one of the UK's foremost specialists on the Bribery Act 2010. He has been working closely with CM Group to produce eLearning courseware covering the Bribery Act
Tim Buff: “So you’re saying all organisations need to understand this and think it through?”
James Vine: “Absolutely! All organisations – whatever they do and however they operate, they are covered by this legislation. The Government is really trying to use the opportunity to improve standards across the board.”
Tim Buff: “Can you summarise what the Act is all about?”
James Vine: “The Bribery Act creates a corporate offence whereby companies are held liable for the actions of their employees as well as their agents and intermediaries worldwide. That means a company can be culpable even if none of its employees knew about bribes being paid out on its behalf by an associated person. The company’s only defence is to show that it had ‘adequate’ anti-corruption procedures in place to prevent bribery. So individuals who make or take bribes can be liable, and the employers who have failed to prevent them from doing so are also potentially liable.”
Tim Buff: “So how do you know if you might have a problem?”
James Vine: “Think about risk. If you are a small to medium sized business, you may think that this legislation is overbearing for an organisation of your size. But consider the risk factors in your own particular operation – How do you conduct business? Is there a suspected problem of bribes in your industry? Perhaps you’re involved with overseas partners, suppliers, customers or agents? And remember you could be responsible for the actions of other ‘associated persons’ that you are in contact with on a regular basis”.
Tim Buff:
“And what is a bribe in this context?”
James Vine: “Well, it ranges from the obvious wad of unmarked cash in a brown envelope to more subtle ways of giving something of value, like over generous hospitality or entertaining, lavish gifts, invoices being agreed in excess of the standard contract terms or perhaps certain significant commission payments.“
Tim Buff: “OK, so it sounds like a real attempt to improve the business and social environment we operate in. Do you think it will work?”
James Vine: “I hope so, but that remains to be seen. It certainly is a serious piece of legislation with severe penalties for transgressors”.
Tim Buff: “Are these the fines and possible prison terms you’ve mentioned?”
James Vine: “Yes. Some have said the potential penalties are draconian, but I think they will be applied reasonably. Much depends upon the steps that organisations take to make their people aware of the new rules and implement some straightforward procedures., As long as they do that, then I don’t think people should be too worried.”
Tim Buff: ”The aim seems to be a positive one, encouraging people to comply with best practice rather than simply waving a big stick to force them to toe the line. What can businesses do to make sure they know how to respond to the new legislation?”
James Vine: “Firstly make sure your key managers know what is in the Act – it isn’t that complicated and completing the eLearning course that I have been working on with CM Group will give them a thorough working understanding of the subject. Then have a think about what procedures you need to implement, and finally roll out the essential training to your staff and if necessary also to those in your supply and customer chains. Again eLearning is ideal for this and is an incredibly fast and effective way to train people in the requirements of the Act.”
Tim Buff: “It sounds like you are a convert to eLearning”.
James Vine: “Definitely – it is a fast, reliable and very cost effective way of reaching large numbers of people and the course I’ve developed with CM Group is ideal for rolling out to large numbers of staff and associates wherever they are. I’m particularly impressed by the delivery infrastructure CM have made available as an additional option to serve their customers, it’s low cost, easy to turn on and use, and tracks each individual’s completion of the course, so it’s ideal for those organisations which want to maintain an audit trail of their training. I hadn’t realised the flexibility and reach of eLearning before.”
Tim Buff: “Business ethics and corporate standards of responsibility are areas where we’ve done a lot of work in the past. It seems a very logical progression to enact legislation to support good practices to make sure everyone is on the same playing field and no one is getting some unfair advantage through illegal backhanders. Training is always a important part of making sure you hit your aims”.
James Vine: “I understand that you have a unique tailoring capability if clients want it?”
Tim Buff: “That’s right, we’re one of the largest producers of bespoke eLearning in the UK, and we export a lot of what we do so if needed, our training is available in multiple languages all over the world. The Bribery Act training is available in standard form, but if clients want to use that as a starting point and add their own branding and messaging to the courses and perhaps their own procedures, then we can easily accommodate that.”
“It’s also worth bearing in mind that we have a range of support services available if clients want to go further than the standard offering and need help looking at specific aspects of their own circumstances”.
James Vine: “As a final question, you’re a businessman do you think this new Act will make UK plc less competitive?”
Tim Buff: “We’d probably all agree that successful long term profitability and stability is founded on providing good quality products and services and acting with integrity and responsibility to build trust. Challenges arise when you are faced with short term pressures and conflicting demands. I think this Act will actually help people face up to those pressures and understand what is the right thing to do in a given situation. By underpinning the ethical foundation with a solid legal framework this should help us have a better environment at home and build that vital trust overseas. So overall I’d prefer to see the Bribery Act as a positive opportunity rather than a threat.”
