Contingency Corner: Bribery and Corruption Risk
Bribery and Corruption Risk
Why exposure extends beyond direct conduct
Many anti-bribery laws, including the US Foreign Corrupt Practices Act and the UK Bribery Act, hold organizations liable for the conduct of agents and intermediaries acting on their behalf, not just direct employees.
Key prevention steps
- Adopt and enforce a clear anti-bribery and corruption policy
- Train employees and partners on what qualifies as a bribe or improper payment
- Scrutinize facilitation payments, gifts, and hospitality carefully
- Vet third parties and agents who interact with government officials
- Keep thorough records of transactions and decisions
Sustaining compliance over time
- Establish a confidential channel for reporting concerns
- Conduct periodic anti-bribery training refreshers, not just onboarding sessions
- Audit high-risk transactions and relationships regularly
- Review third-party relationships whenever local regulations shift
Frequently asked questions
Can a company be liable for bribery it didn’t directly commit? Yes. Liability frequently extends to the conduct of third-party agents, distributors, and partners acting on an organization’s behalf.
What counts as a facilitation payment? Small payments made to expedite routine government action, such as customs clearance. Many jurisdictions and corporate policies prohibit these even where locally common.
Interested in strengthening your organization’s security and contingency posture? Contact our team.