Jason Challender - Professional Ethics in Construction and Engineering

The purpose of this document is to define the Organisation Policy on anti-bribery. The policy is based on the Bribery Act 2010 (Act), which came into force on 1 July 2011, replacing and enhancing fragmented and complex existing laws which date from 1889, 1906 and 1916.

The United Kingdom signed an international treaty in 1998 to combat bribery and corruption and the new Act is intended to ensure that the United Kingdom is compliant with its obligations under that treaty.

The Act applies to offences committed on or after 1 July 2011 and the earlier statutes continue to apply to offences committed before 1 July 2011.

This Policy applies to all Members of the Organisation, including subsidiary companies,which means all employees and independent members of Council and its Committees, in particular:

• Members of the Organisation who pay or accept a bribe could be personally prosecuted.
• Senior managers are at risk of prosecution if they turn a blind eye to bribes which are paid or accepted by the staff they supervise.

The Policy also applies to students where they are acting on behalf of the Organisation. Either in a paid or in a voluntary role.

It should be noted that Commercial organisations can be prosecuted and, in addition to companies and partnerships, this expression is wide enough to include universities, schools and charities.

The Act does not only apply to individuals and commercial organisations in the United Kingdom but also to those who have a close connection (business presence) with the United Kingdom.

1.2.2.1 What is a Bribery and Corruption?

1.2.2.2 Giving a Bribe or Active Bribery

Briberyrefers to the offering or receiving an unearned reward to influence someones behaviour. One example of bribery is a Kickback unearned reward following favourable treatment. Corruptionis any unlawful or improper behaviour that seeks to gain an advantage through illegitimate means. Both are illegal.

• An offence is committed where an individual or the Organisation gives, promises or offers any financial or other advantage which is intended to induce or reward the improper performance of a public function or business activity or is made in knowledge or belief that acceptance of that financial or other advantage will itself amount to improper performance.
• It does not matter whether the financial or other advantage is given, promised or offered directly or through a third party.
• The financial or other advantage does not actually have to be given the offer is sufficient to commit the offence.
• Reasonable and proportionate corporate hospitality should not be caught by the Act. However, entertaining which is disproportionate, lavish or beyond what would be reasonably necessary to cement good relations may be evidence of intent to induce or reward improper performance.
• An offence is committed where an individual or the Organisation requests, accepts or agrees to receive a financial or other advantage which is intended to induce or reward the improper performance of a public function or business activity.
• It does not matter whether the financial or other advantage is requested, accepted or agreed directly or through a third party.
• The financial or other advantage does not actually have to be received requesting or agreeing to accept it is sufficient to commit the offence.
• Reasonable and proportionate corporate hospitality should not be caught by the Act. However, entertaining which is disproportionate, lavish or beyond what would be reasonably necessary to cement good relations may be evidence of intent to induce or reward improper performance.
• It does not matter who pays the bribe, e.g., if a director pays a bribe to ensure that his company is awarded a contract, that is still caught by the Act.
• An offence is committed where an individual or the Organisation gives, promises or offers any financial or other advantage to a foreign official which is intended to:
  1. influence that foreign official in the performance of his/her official functions; and
  2. secure business or an advantage for the Organisation.
• It is only a bribe if the financial or other advantage is not required or permitted under local laws.
• A belief that local practice permits the payment is not a defence.
• There is no exception for facilitation payments (small bribes paid to facilitate routine Government action).
• The offence is committed where the Organisation fails to prevent any employee or other associated person (see below) from committing active bribery or bribery of a foreign official on the Organisations behalf.
• The bribe is caught even if it takes place outside the UK.
• The bribe must be intended to induce or reward the improper performance of a public function or business activity.