Ignorance of bribery laws putting businesses at risk

British businesses are putting themselves at risk through ignorance of the Bribery Act suggest Ernst & Young.

Half of firms surveyed by the company were aware of the existence of the Act, and lack of knowledge was particularly stark in the manufacturing and automotive sectors.

Nearly three quarters of firms in the North were unaware of the Bribery Act, and Ernst & Young say these companies could fall foul of legislation that requires proper processes for selection of their supply chain.

The survey collected evidence from 50 procurement managers; 25 from companies with a turnover of £5m-£50m and 25 from companies with revenues in excess of £50m.

The larger firms are ahead in terms of awareness, while their mid-market contemporaries lagged behind with 64% unaware of the Act.

John Smart, Partner at Ernst & Young said: “The Bribery Act has been with us for more than a year, and it’s a concern that so many firms still don’t know what it is and what it means for them. We shouldn’t need to wait for a company to be fined under the Act before we are spurred into taking the appropriate precautions to manage bribery risk.

“The midmarket and the manufacturers really need to get to grips with their bribery risks without delay. If the UK is to export itself back to growth, then this carries with it a whole raft of new risks, including bribery. A robust review of the supply chain should be a key focus for businesses, as proper processes for vetting suppliers is required under the legislation.

“Based on our findings, it seems that firms are either underestimating bribery risk, don’t feel sufficiently educated to give their staff adequate guidance, or are failing to see the urgency in ensuring that their organisations and their suppliers are Bribery Act compliant.

“In any case, these results should serve as a stark warning to firms that they should ramp up their compliance procedures to ensure that clear anti-bribery policies are in place right across the business and the supply chain, and that relevant staff receive sufficient training.”

This was posted in Bdaily's Members' News section by Tom Keighley .