Businesses ‘shunning’ Bribery Act

THERE has been a poor response and little acknowledgement of tough new corporate bribery laws introduced last year. a survey suggests.

According to business advisers Ernst & Young, nearly three quarters, 74%, of 1,000 middle managers had even heard of the Bribery Act.

Less than half (47%) of those that had heard of the Act, believed they had received adequate training to ensure compliance with the Act.

More than 20% of those surveyed said they were aware of unethical activity at their company.

The Bribery Act was introduced to provide businesses with a clear legal framework to combat bribery, domestically and internationally. Breaching the law could earn directors a 10-years in prison and an unlimited fine.

Despite the new law more than half of UK executives (54%) would not rule out unethical activities to survive the recession, E&Y’s 2012 Global Fraud Survey said.

Findings revealed that those who would provide personal gifts to secure business almost doubled in two years. A few even said they would give cash payments to win or retain business during the downturn.

Victoria Spencer, North West fraud investigations leader at Ernst & Young, said:  “It is alarming to see that the overwhelming majority of those at managerial level are still unaware of the Bribery Act, given that it is applicable to all UK businesses and came into force a year ago.

“The lack of reported cases may have lulled organisations into a false sense of security. Either they are underestimating bribery risk, do not feel sufficiently educated to give their staff adequate guidance, or they are failing to see the urgency in ensuring that their organisations are Bribery Act compliant.”