Bribery and corruption - risks for your business and directors

Summary

Bribery and corruption are serious criminal offences in England that undermine fair competition and erode public trust. The Bribery Act 2010 is the key legislation, outlining various offences and potential consequences for individuals and organisations. With over 20 specialist criminal lawyers including experts such as George Kampanela, renowned and experienced in corporate criminal offences, we can help your directors ensure that you mitigate the very real risks of bribery and corruption and, if offences may have been committed we are experienced in representing clients in criminal defence. The Bribery Act defines bribery as offering, promising, giving, or asking for an advantage (financial or otherwise) to influence someone improperly in performing a relevant function or activity. This can occur in domestic or foreign settings. * Bribing Another Person - offering or giving an advantage to influence their actions in any capacity, be it private or public. * Accepting a Bribe - agreeing to receive an advantage in exchange for improper performance of a function. * Bribery of Foreign Public Officials - offering or giving an advantage to a foreign public official to obtain a business.

Key information

• •Bribing Another Person - offering or giving an advantage to influence their actions in any capacity, be it private or public.
• •Accepting a Bribe - agreeing to receive an advantage in exchange for improper performance of a function.
• •Bribery of Foreign Public Officials - offering or giving an advantage to a foreign public official to obtain a business advantage in violation of their local laws.
• •Individuals - maximum 10 years imprisonment and/or an unlimited fine.
• •Organisations - unlimited fines, debarment from public contracts, and reputational damage.
• •Breach of Duty - directors owe a duty to act in the best interests of the company. Engaging in bribery or corruption can be seen as a breach of this duty, potentially leading to lawsuits from the company itself or its shareholders.
• •Negligence - if a director fails to take reasonable steps to prevent bribery or corruption within the company due to a lack of oversight, they could be held personally liable for any resulting losses.
• •Consent, Connivance, and Neglect - the "controlling mind" principle applies. If a director knowingly consents to or actively encourages bribery, or turns a blind eye to corrupt practices due to neglect, they can face criminal prosecution alongside the company.
• •Failure to Prevent Bribery - the Bribery Act 2010 specifically holds companies liable for bribery committed by associated persons (including employees and subsidiaries) "under their procedures." This "failure to prevent" offence can extend to directors if they haven't implemented adequate anti-bribery and corruption policies or failed to monitor their effectiveness.
• •In a real-world scenario, if a director authorises a bribe to secure a lucrative contract, they could be personally liable for the bribe amount and any resulting losses to the company. They might also face criminal prosecution.
• •If a director fails to implement a whistleblowing hotline or ignores red flags raised by employees regarding potential bribery, they could be held liable for negligence in the event of a subsequent bribery scandal.
• •Lack of intent - demonstrating the absence of any intention to influence someone improperly.

Practical guidance

• •Source: [Bribery and corruption - risks for your business and directors](https://www.taylor-rose.co.uk/posts/bribery-and-corruption-risks-for-your-business-and-directors)

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