Dr Ian Peters, chief executive, Chartered Institute of Internal Auditors
For most British companies the Bribery Act should be a useful excuse to check that their organisation has in place the kind of basic business ethics that investors increasingly expect of companies. But instead it has been turned into this year's red-tape scare story where protection can be found only behind an army of lawyers supported by battalions of check lists.
This scaremongering is bad news not just because it means that business will fork out fees for work they never needed to do. Senior management time will also be lost and there is the real risk that some businesses, as they get to grips with this legislation risk, will bequeath themselves an unnecessary legacy of box-ticking for years to come.
Fundamentally, the law is asking businesses to exercise their common sense to ensure staff understand when they shouldn't take payments and when they mustn't make payments. It also provides them with the means to check their judgement.
Most of this work can be done within the existing infrastructure of a business. In fact, the internal audit teams of larger companies may have been checking and reporting for years on the way their organisations deal with the risk of bribery, corruption and other forms of unethical conduct.
Corruption and bribery are symptoms of deeper organisational problems, a basic business risk and nothing to be complacent about. The Bribery Act, on the other hand, is not quite the horror show that the critics claim.
David Ashplant, partner, Lester Aldridge LLP
The Bribery Act carries harsh penalties for infringement, including imprisonment. But it also provides defences for those that take appropriate action. Businesses must be aware of the act, the risks it poses and how to mitigate those dangers.
An accusation of law-breaking would involve a huge waste of management resources, significant legal costs and damaging publicity, which may result in future bids being rejected. Time invested now to educate relevant staff and put in place correct procedures will hopefully avoid any such allegation ever being made. If not, at least it would allow a defence to be mounted.
A business can break the law if a person associated with it commits a "bribery offence". Although the act is often described as the toughest anti-corruption legislation in the world, it offers a defence to be made – as long as adequate procedures were in place to prevent the offence from being carried out. It will be up to the business to show the strength of its procedures.
The act presents particular challenges to exporters because the risk of bribery is much higher in some foreign markets. Companies need to do a risk assessment and react to any dangers they face. For some, that will involve rigorous training and an upgrade of procedures. For others, it may mean withdrawal from certain markets. But for those in a low-risk environment, little action may be needed. The Serious Fraud Office is likely to use this new weapon to counter allegations of not pursuing bribery claims seriously in the past.
