The issue of corporate bribery and corruption has been an international matter of concern for years, but the risks to businesses during a worldwide pandemic are heightened. The specialist commercial lawyers at Bahamas law firm ParrisWhittaker are highly experienced in advising commercial clients on identifying and mitigating the risks to which they are exposed.
Covid-19
The commercial world and the working methods of employees and workers have changed dramatically over the course of the year as we adapt to living alongside the novel coronavirus. For business owners and corporate directors, they carry a heavy regulatory burden as they have had to reassess the risks to their business in a highly fluid situation.
The risks were recognised early in the pandemic. In April, for instance, the OECD Working Group on Bribery made clear the global response must not be undermined by bribery (the working group is to examine the possible impact and consequences of the pandemic on foreign bribery).
A serious risk relates to bribery and corruption as workforces work from home; business priorities shift; and snap decisions about the use of new technology are made. An important further factor is that individuals are personally impacted by covid-19 in different ways, and they are more vulnerable to making wrong or risky decisions.
Companies must be acutely aware of these issues because they cannot expect a light touch response from the regulators or prosecuting authorities if there is evidence of corruption, or of bribery within their supply chains. Despite the pandemic, you remain obliged to demonstrate you have ‘adequate procedures’ in place to satisfy the requirements of the Bribery Act 2010.
Where bribery offences are alleged, the business could be hit with severe sanctions, not to mention the reputational damage.
What can you do?
The obvious place to start is to recognise the risks within your own business. This requires a thorough risk assessment which is followed by regular assessments to ensure any new risks are picked up and addressed.
Look at your supply chains as these can pose a significant risk. If there are new third parties or government actors in foreign jurisdictions, ensure you take the necessary precautions.
Don’t skip your due diligence responsibilities. If, for example, a new or third party is introduced into your supply chain or if you decide to outsource any processes or procedures, ensure you do your diligence.
Resist the temptation to exert undue pressure on individuals working for you. While the economic situation is tricky and your business may be under financial stress, putting significant pressure on employees and others to reach their targets makes them vulnerable to decisions and actions that may amount to bribery.
How can we help?
We advise and represent companies and large corporations on their corporate and regulatory obligations. Our specialist commercial lawyers are experienced in explaining the risks of bribery offences being committed within the company, helping clients address those risks effectively.
If you have any concerns in relation to your responsibilities, particularly in the covid-19 environment, contact the expert lawyers at ParrisWhittaker for strategic advice and representation.
