Legal Aspects of Business: Bribery and Corruption

This document discusses the legal aspects of bribery and corruption in business, focusing on the UK Bribery Act. It explores the definition of bribery, penalties for committing bribery, and the impact of bribery on the economy. The document also provides suggestions on how companies can prevent allegations of bribery and corruption.

Legal aspects of business

Contents
INTRODUCTION:......................................................................................................................................3
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................6

INTRODUCTION
Bribery is an illegal act which comes under corruption and is defined by the black’s law
dictionary as asking, giving, receiving of anything of value to attract the actions of an official or
some other person in charge of public or legal duty. A bribe is an unethical or illegal or wrong
gift of effort to influence the withdrawers conduct. It might be the money, goods, rights in
actions, property, objects of values or a promise to influence the action of a person in an official
or public capacity. The bribery act 2010 is an illegal act of parliament of UK that emphasizes on
the criminal law which are related to bribery. In 2009 this act was introduced in parliament I in
queen’s speech after few reports and bills, this act was approved by the royal assent on 8 april
2010 following the cross party support. This is an act which is established in order to make
provisions about the offences related to bribery and for the related purposes. It was introduced by
jack straw. The penalties for pursuing a crime within this act are maximum of 10 years of
imprisonment in addition with an unlimited fine. It has been considered as the toughest anti-
corruption legislation in the world.( Alldridge,2012)
1. The hospitality provided by G ltd for guests at Cheltenham festival event might make it
criminally liable for bribery as these companies are hosting extravagant events along with
their competitors to avoid losing the business to them. The government can take actions
to fight against corruption like bribery as the laws enforced should be effective enough to
make sure that the corrupt are punished. The appeals for successful enforcements are
supported by a strong legal framework, branches of law enforcement and effective court
system. The administrates making efforts in improving the financial management and
making the auditing agencies stronger in many countries have had a greater impact than
the public sector and in reducing the corruption. These events are highly expensive,
excessive and over the top. It also promotes goods and services using corporate
entertainment and these companies have hired a private box hospitality suite at 2020
cheltenham festival in order to meet and greet UK customers. In this meet and greet a
four course meal was also served as well as the afternoon tea. It also allows the guests to
access to a free private bar and could place their bets with this grand meet and greet it
increases the risk for bribery. It is an illegal act which can take place in the event and

make the individuals incur the criminal liability for corruption . For example a person
who is directly into committing a corruption offence may be liable for the offence that is
an individual who personally pays or receive a bribe. They are directly involved in this
while there are some individuals out there in the event in which some of them are
indirectly involved which also makes them liable for a criminal offence. For example an
individual may be liable if that person used an other person or organization to commit the
corrupt act on his\her behalf.( Trautman, and Altenbaumer-Price 2013)
2. The plan to expand the corporate entertainment programs might give room to the
allegations of bribery. The main causes of rising of corruption can be, since there is
never only one factor responsible for the development and occurrence of it, it may arise
from various factors which are interrelated but can differ from one another. Among the
most common factors for the development of this act can be the political and economic
environment, professional ethics and legislation and factors like customs, habits and
traditions. The bribery can also affect the economy of the country it increases the wealth
inequality and supports the corrupt regimes. As an unethical practice bribery should be
prosecuted even in countries where it is an acceptable act. The government of few
countries which fails to prosecute the bribery cases will be responsible for the
consequences. If once the company gets aware of the allegations or the suspicious act like
the corruption or bribery, it should investigate the suspicious and the alleged act. If the
criminal offence is proved to be credible, the G ltd. Company must take required actions
in order to respond. The steps which involves the investigation in an alleged act which
has been noticed followed by trigger events. These events is an occurrence which causes
another event to occur. In anti-corruption programs, it is an event that is the main basis
for an allegation, like for bribery and corruption. These events covers under it the
negative audit reports, reports from a whistle blower hotline etc. these events sometimes
do not occur suddenly but instead takes place over a time such as increased in submitted
expenses during the bid submissions. Other trigger events can be multiple mode of
payments to the same person on the same day. The company need to be concerned about
the seriousness of the allegation. They need to figure out if the allegation is serious
enough that it needs to be escalated to an audit committee, or the company has time to
review the allegation (Yeoh, 2012).

3. To avoid the future allegations of bribery the I believe that company should take proper
steps. The company is required to assess the credibility and seriousness of the allegation,
so that the actions taken by the company is proper and is equal to the allegations at the
same time. For example if I work as the manager at G ltd the seriousness of the allegation
is overemphasized, the company’s response to the allegations should also be wide
enough. This can also raise the amount of money I needed and the time the company
spends in the investigation of that allegation. Once I have the allegation is proved to be
credible, the first and foremost step the company should take is to launch an
investigation. The company should also ensure that the evidence is reviewed and
preserved, I have interviews with the prime employees, give a report to the stakeholders
and also develop a forensic accounting review which can reduce the risk of allegations
furthermore. The corruption affects the entire country whether rich or poor, thus I thinks
that it leads to instability, inequality and poverty destructing the national wealth as well.
Despite of the enforcement for me about the bribery act of UK in 2011 which was
considered as one of the toughest bribery laws all over the world, bribery still proved to
remain at a significant risk for the UK organisations. A quarter of businesses have
undergone to the criminal offence of bribery and corruption in the three years to 2018.
CONCLUSION
The government can take several prime steps to reduce bribery by creating an anti-corruption
policy in the national capital which will have a significant account. Government can also make a
change in laws and institutions that identifies how public services are delivered. The foreign
clients can also take a step forward in order to support these changes made by the government by
mentioning the conditions for the delivery of services that they fund. The public disclosure of
misdeeds will make the officials at least risk in engaging in the corrupt practices that is the
repealing laws which restrict the freedom of press to cover the corruption in public service
delivery, replace face to face interaction with computers which neglects the necessary conditions
for the bribery, reduced discretion by adapting the automatized procedures will snatch the
opportunity from the public employees to alter the outcomes and will remove the opportunity to
derive bribe from the users.

REFERENCES
Books and journals:
Alldridge, P., 2012. The UK Bribery Act: the caffeinated younger sibling of the FCPA. Ohio St.
LJ, 73, p.1181.
Jordan, J., 2011. The adequate procedures defense under the UK Bribery Act: A British idea for
the foreign corrupt practices act. Stan. JL Bus. & Fin., 17, p.25.
Yeoh, P., 2012. The UK Bribery Act 2010: contents and implications. Journal of Financial
Crime.
Trautman, L.J. and Altenbaumer-Price, K., 2013. Lawyers, guns, and money: the bribery
problem and the UK Bribery Act. Int'l Law., 47, p.481.