Prevention measures
Katherine Smithson reveals how sector bodies have come together to produce proactive guidance on tackling bribery risks head-on
Back in the November 2010 issue of Caritas, I wrote about some of the potential implications for charities of the soon to be implemented Bribery Act 2010, a comprehensive piece of anti-bribery legislation.1 At that time one of the big issues was how far reaching into the sector the new offence of ‘failure to prevent bribery’ for commercial organisations (section 7) would be.2 Just where exactly do we draw a line between commercial and charitable entities? In this instance, should we?
Section 7 position
Although the implementation of the Act was delayed until July, we did have guidance published by the Serious Fraud Office (SFO) and Director of Public Prosecutions (DPP) as well as the final set of guidance principles from Ministry of Justice (MoJ) aimed at supporting commercial organisations in implementing ‘adequate procedures’ that would help them to ‘prevent bribery’.3 We knew back in November that in order to be appropriately prepared for the legislation, the sector would have to group together to produce meaningful and relevant resources, using the knowledge and experience within those organisations affected.
Best practice
Regardless of the risk of prosecution, charities should be dedicated to tackling bribery and corruption as a matter of course. The negative impact of corruption is far reaching, undermining the work of INGOs worldwide. The Bribery Act 2010 should be understood as the relevant legal context, but it should not be the sole driver for anti-bribery policies.
There is a lot to be learned from those that are already working to prevent bribery in their own organisations. Some organisations are further along than others when it comes to understanding the level of bribery risk to which they are exposed and in finding ways to deal with this. What was needed was support developed for the sector, by the sector. Thanks to the initiative of Mango, Transparency International-UK, Bond and a working group of NGOs, this is now what we have.4
Over the past months CFDG has been part of this working group which has been developing anti-bribery and corruption principles and guidance for NGOs. Following a long process of drafting, comments, expert input and review, we now have the final document.5
In our view, this is something for the sector to be proud of. Rather than waiting to see what the impact of the Bribery Act will be on the way they function, charities are taking this opportunity to pro-actively take a stance, address the issues head-on and set an example.
At the heart of tackling bribery and corruption there needs to be collaboration. This collaborative effort by NGOs to produce a document of real practical value is a great start.
So what are our principles?
Unlike the MoJ guidance for commercial organisations, after much discussion we have placed top-level commitment where it belongs, at the top. Principle number one therefore, a policy of zero-tolerance at the top of the tree, acts as the driver for number two – the implementation of policies within an organisation to counter bribery. These should include:
- High-level commitment – reiterating that the board of trustees and senior management need to commit to anti-bribery, recognising the damaging impact of bribery and corruption both economically and on the fundamental values of an organisation.
- Risk assessment – a crucial process both as a start and as an ongoing process. Where is the organisation exposed to a risk of bribery? There are likely to be range of internal and external risk factors to consider, including geographical, procurement and reputation risks. The full document gives more information.
- Devise and implement robust anti-bribery procedures – these should be proportionate to the risks, size, resources and complexity of the organisation. Again the full document gives an outline of what these could include.
- Due-diligence assessment of partners, agents and contractors – who do you work with and what do they have in place to prevent bribery in their own organisation?
- Dissemination and communication – communicate and prepare (where necessary through training) those that will ultimately be affected in practice, your staff.
- Monitoring and evaluation – bribery and anti-bribery procedures should be incorporated into overall risk management and internal control processes.
- Collective action – share information internally and externally with other organisations, especially those working in similar areas, in order to collectively counter a ‘culture of bribery’.
This covers the basics. It is up to an individual organisation to apply these principles proportionately to their situation. The detailed guidance given in the individual sections of this publication however, is the most comprehensive and tailored information available to charities.
1. See ‘Zero tolerance’ on page 27 of issue 36
2. See also: www.charitiesdirect.com/caritas-magazine/oiling-the-wheels-810.html
3. www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf
4. The Bond anti-bribery NGO-working group was chaired by Mango and TI-UK. Other group members were CFDG, WaterAid, Oxfam, CAFOD, Christian Aid, Global Witness, Muslim Aid, Tearfund and WWF.
5. www.cfdg.org.uk/~/media/Files/ Resources/ CFDG%20Publications/NGO_Anti-bribery_Principles_and_Guidance_Final.ashx
Author: Katherine Smithson
Katherine Smithson is policy officer at Charity Finance Director’s Group and joined the CFDG team in April 2010, following two policy internships within the sector and an interim position as volunteer manager for the charity Body & Soul.
She has also in the past worked for Warwickshire Probation Service and the NHS.
Katharine is currently working part-time towards a master’s in public policy from King’s College London, which she is due to complete later this year.
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