When bribery and corruption run rampant within governments, they greatly erode our social fabric—negatively impacting such things as the provision of services such as schools, roads and hospitals, standards of living and global climate change efforts. They are estimated to cost the global economy upwards of one trillion dollars per year. That's why, back in 1999, Canada—along with many other countries around the world—signed the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
Over the last four years, many countries have been working together to build upon those original 1999 commitments and create stronger anti-corruption and anti-bribery regulations—a step that has resulted in phenomenal progress worldwide. While this is definitely something to celebrate, there is still a lot of work to be done. While many large public corporations have taken the necessary steps, many private businesses in the middle market have not turned their attention to this issue, yet.
If you're a private business owner that conducts business outside of Canada, it's time to implement anti-corruption and anti-bribery policies in your organization—if you haven't already. Since revising the Foreign Corruption of Public Officials Act (FCPOA) in 2013, Canadian regulators have taken an aggressive approach to enforcement of the law. Companies are required to have an effective anti-corruption compliance program and to be making demonstrable efforts to combat bribery and corruption.
Getting started doesn't have to cost you big bucks either. Here are some affordable steps you can take to get the ball rolling.
Step 1: Conduct a risk assessment
The scope and details of the anti-corruption risk assessment you conduct depends on your company, industry and country, but essentially it should seek to uncover where, when and how your company deals with foreign officials overseas.
For example, whether you're interacting with foreign officials to acquire permits or simply to pay your taxes, look carefully into these exchanges and determine whether your interactions are documented and transparent. If there are situations where your company has been paying for things in cash, in private or where third-party agents are involved, you may want to explore these further.
Step 2: Explore high risk areas
Certain activities are recognized as high risk, for example, if you give gifts to foreign officials, pay for their travel, donate to foreign charities or political parties, or hire third-party agents to handle your company's government relations, you should ensure compliance with the new rules surrounding these activities.
For one thing, acceptable gifts to foreign officials should be limited to inexpensive items that are not intended to influence an official's behaviour in any way—and these items should be given in a transparent manner . Some charities could be fronts controlled by foreign governments—so if you're making a donation, take steps to ensure they are legitimate. Also, the use of third-party agents to deal with foreign governments on your behalf has proven to be the most risky approach there is. Turning a blind eye to their actions will not protect you from prosecution. It's up to you to ensure you're retaining agents with legitimate expertise and no history of shady dealings.
Step 3: Build an affordable compliance program
There are plenty of affordable measures you can take to get in line with anti-corruption and anti-bribery legislation across the world—and most of them stem from setting the tone from the top. By taking the time to implement anti-corruption and anti-bribery policies and procedures within your company, establish a cost-effective whistleblower hotline (to allow employees to anonymously report violations of these policies), de-incentivize people from committing corrupt acts (e.g. eliminate sales targets) and incentivize people to behave ethically, you're well on your way to meeting today's requirements.
Regardless of your business's size, you have a part to play in eliminating bribery and corruption across the world. If you're wondering where to start, check out the UN Guide to Anti-Corruption Policies, a Resource Guide to the US Foreign Corrupt Policies Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
