On November 20, 2008 the Law Commission published a long-awaited report into reforming the law on corruption. So Bill Waite, CEO of consultancy Risk Advisory Group writes.
The arguments which support the need for change are well-rehearsed and have been increasingly influenced by international allegations of a lack of political will to prosecute bribery allegations of foreign nationals by the UK government.<br><br>The government has been stung by these allegations and has said that it will put forward a draft bill for the next Parliamentary Session. There is little doubt that there will be new law.<br><br>On the consultancy’s website he goes further into what the law may look like and what it means in terms of risk for multi-nationals doing business – as Waite puts it ‘Corporations do not commit crimes – their people do.’ <br><br>This may require screening, of staff, agents (for customs and visa handling, for intance) and joint venture partners.<br><br>"If employees have lied to get their jobs not only is competence an issue but so is integrity. Screening is particularly important when entry into new markets, or an acquisition, bring an influx of new employees into the organisation."<br><br>Waite goes on to tackle the fact that most of the global economy is in recession – hence the prospect of spending money on something not so obviously leading to a corporate profit is, he admits, a difficult sell. <br><br>"Moreover, as was evident in the financial services sector, introducing new rules to circumscribe how people generate revenue is not likely to be either popular or adhered to.<br><br>"The business proposition is and must be aimed at persuading the business that the compliance programme is designed to add value to the business and not simply to add costs.<br><br>"For screening this is readily explainable. The extra resource requirement – making sure you’re hiring the right person with the right qualifications and experience – has got to be much more cost-effective than getting the wrong person and then having to get rid of them. Similar arguments can be deployed with agents and vendors.<br><br>"Joint venture partners are more difficult. In that context it is important to undertake basic research first before becoming embroiled in time-consuming and expensive negotiations. Allowing business development teams to spend their time developing real rather than illusory and possibly highly damaging “opportunities” must be the argument here. To achieve that, early engagement in strategy by compliance is essential."<br><br>For the full article, which goes on to corporate culutre and monitoring, visit the consultancy’s website (link below).
About Waite
Bill Waite is a lawyer and has more than 20 years experience in white collar crime matters. For the last 15 years he has spent a time helping US, European multinationals and overseas Governments implement and execute anti corruption policies and procedures. He also has experience in investigating allegations of corruption.
