Bribery Act Doesn't Affect Business

UK companies have said the Bribery Act has not affected their ability to do business, according to a report published on Friday.

Credit Rating company Ernst & Young said their survey found that the vast majority of UK companies say the Bribery Act has not significantly affected their ability to do business despite outcry during the Act's implementation in July.

Companies at the time claimed the legislation would damage the UK’s competitiveness abroad, but Friday's research reveals that just 6% of firms believed the anti-bribery law hampered their business dealings.

The survey by the firm’s Fraud Investigation & Disputes Services team, coinciding with the UN’s International Anti-Corruption Day polled 406 chief financial officers, controllers and finance managers at a range of FTSE, mid-size and private firms.

John Smart, Head of the Fraud Investigation & Dispute Services team said:

“The Bribery Act has caused organisations to examine how they carry out their business, particularly how they work with third parties for example agents, intermediaries, and distributors. Some businesses however have still not paid heed to the Bribery Act and they are at risk, particularly in their dealings abroad.

“The SFO has a large number of ongoing bribery and corruption investigations and is looking to take its first corporate scalp. Being cognisant of the risk, having detailed knowledge of those acting in your name, and making good decisions about the way you operate abroad goes a long way to protecting your business.”

Jonathan Middup, Head of Anti-Bribery and Corruption team team said the Act had not proved to be the costly barrier some feared it would become.

“The premise that UK businesses need to pay bribes to be competitive abroad is a false one. There is a cost of carrying out risk assessments, amending policies, and implementing training and due diligence procedures but for many well run businesses they have been able to bolt on the extra requirements to good compliance structures that already exist. "

(DW)