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fter false starts, wrangles and delays over issuing guidance, the new Bribery Act came into force in July 2011 leaving many businesses worried they might do something ‘wrong’ and fall foul of


this new piece of legislation. Will they be accused of accepting a bribe if they say


yes to a ticket to a rugby game from a client? Should they send out those bottles of wine to potential customers? According to the Institute of Directors there is no


lower limit on the size of firm which will be affected by the act. A spokesman said: “Small UK operators may be less


affected, but if you deal with high-value contracts, or trade overseas, you’d be wise to review how your sales are achieved. If you operate abroad, you could be liable for the


actions of everyone working for you: employees, agents and others acting on


your behalf.” Helen Tudball, Associate and Head of


The Business Quarter looks at how the new Bribery Act could affect you... are


Business Recovery and Insolvency at Harding Evans, said: “Businesses are now effectively on notice that they should assess the particular risks facing their operation and ensure that they have adequate prevention safeguards in place. “Businesses which fail to take the issue seriously could


face prosecution for failing to prevent bribery. Bribery does not always mean brown envelopes – it could mean an all expenses trip to Barbados. It is all about context. Beware the lavish Christmas gift – a judge may not accept that it came from Santa!” Jason Smith, managing partner of Darwin Gray,


said: “The generally creates four new offences: offering, promising or giving a bribe to another person; requesting, agreeing to receive or accepting a bribe from another person; bribing a foreign public official and failing to prevent bribery (the corporate offence). “All companies who do business in the UK, whether


incorporated here or not, should be aware of the issues but in particular those with an international aspect to the business; those who do business with large international companies or public authorities and those which work in a sector or country with high levels of corruption.” Jason said: “The new corporate offence has


prompted much comment and concern from commercial organisations. Section 7(1) of the act provides that a relevant commercial organisation is guilty of an offence if a person associated with the organisation bribes another person, intending to obtain or retain business or a business advantage for the organisation. “The offence can be committed in the UK or overseas


and is effectively a strict liability offence. “One of the other most controversial areas was the


issue of how much hospitality, promotional or other business expenditure could be done. Guidance stresses that genuine hospitality or similar business expenditure which is reasonably and proportionate will not be caught by the act.


22 THEbusiness QUARTER


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