Corporate Governance and Corporate Social Responsibility

This report covers the UK Bribery Act 2010, including its scope, the 'failure to prevent' approach, associated persons, and likely penalties for conviction for bribery. It also discusses corporate governance and corporate social responsibility.

Corporate Governance
and Corporate Social
Responsibility

INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Outline the scope and application of the UK Bribery Act 2010 (UKBA).................................3
Explain the ‘failure to prevent’ approach under s 7 of the UKBA and what defences, if any,
apply............................................................................................................................................4
What is an ‘associated person’ pursuant to the UKBA?...........................................................4
What are the likely penalties on conviction for bribery?..........................................................5
If the above scenario was referred to you for advice, what would be your assessment of the
circumstances and, consequently, your advice?........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Corporate Social responsibility is known as a social responsibility of the corporate area
which scrutinize the reliability or sustainability of an organisation by delivering the social,
economic and environmental benefits. It is defined as a responsibility of an organisation for
imbibing the impacts of its decisions on society through translucent and moral behaviour, which
is beyond its legal obligations. Corporate Social Responsibility “(CSR)” is a mandatory duty
under corporate law. The UK Companies Act 2006, requires the head or director of company to
consider the interest of employees, consumers, suppliers, environment and the community while
trailing the interests of shareholders1.
The UK Bribery Act 2010 was passed by the parliament in order to penalise the officials
of foreign bribing and representatives of business. This act covers UK citizens, residents and
organizations which originate from UK or administers business in the country.
This report will cover the UK Bribery Act 2010, with reference to associated persons and its
recommendations.
TASK
Outline the scope and application of the UK Bribery Act 2010 (UKBA).
The bribery in UK has seen the significant change in prosecution after the coming up of the
bribery Act of 2010. It is a result of the long attempt which has brought major reforms in the law
in respect of corruption and bribery. This legislation has replaced the pre-existing law, that is, the
common law of the bribery as well as statutory offence in public bodies corrupt practices Act of
the year 18892. This law has the main scope which has introduced two kinds of general offences
which includes promising, offering and giving of the bribe and also requesting or may be
agreeing for accepting or receiving the bribe. The second offence is the bribing of the foreign
1 Horder, J., 2019. On Her Majesty's Commercial Service: Bribery, Public Officials and the UK Intelligence
Services. The Modern Law Review, 74(6), pp.911-931.
2 Hatchard J, 'Combating The Bribery Of Foreign Public Officials: The Impact Of The UK Bribery Act 2010'
(2020) 4 The Law and Development Review.

public official as well as corporate offence of the failing to avoid or prevent the bribery. This
legislation has the wide scope and the potential application of this legislation is to every business
which conduct their part of the business in UK. The application of this legislation is on both the
companies which are UK based as well as foreign based who has their operations in UK even
though the offence is being taken place in any third country or may be unrelated to the operations
of UK. This piece of law has created the new offences of the significant scope and has the extra
territorial reach. Its scope is wide because it criminalizes both the passive as well as active
bribery, that is, being brief as well as bribing itself.
Explain the ‘failure to prevent’ approach under s 7 of the UKBA and what defences, if any,
apply
There is provided some important areas and the ways in which all the corporate criminal
offences in relation to failing to prevent in section 7 from Bribery Act 2010 is been given. It
involves all such offences and the issues in relation to the attaching all such culpability through
which the offences which are drawn and committed will be undertaken. There is been given that
all such areas in which the corporate criminal liability of section 7 in the Bribery act 2010 will be
drawn3. This majorly incorporates all such areas and the ways in which the intention from the
retaining with all the certain advantages and the business issues. This undergoes all such areas in
which the bribery undermines and provide the economic progress and the ways with which all
the robust offences and the issues in relation to the enhanced sentencing power will be covered
their in. as according to section 7 there is been seen that in order to manage the appropriate
balance and also the recognition with no bribery regime is addressed. All such defence will cover
the commercial organisation and the procedures through which issues are prevented.
What is an ‘associated person’ pursuant to the UKBA?
Under the UK Bribery Act 2010 (UKBA), an 'associated person is defined as a person who
conducts or performs services for or on the behalf of institution or organisation which may
include employees, subsidiaries and agents. He is a person who does the services for a
commercial organisation with the help of potential associated persons. An associated person
(AP) is an individual or an incorporated or unincorporated body who impetrate orders,customers
3 Lee J, 'Exclusivism, Inclusivism And Pluralism In The UK Bribery Act 2010' (2019) 12 Journal of
International Trade Law and Policy

or customer funds who administers or manages on the behalf of Future Commission Merchant
(FCM), Retail Foreign Exchange Dealer (RFED), Introducing Broker (IB), Commodity Trading
Advisor (CTA) or Commodity Pool Operator (CPO). A partner, officer, director, branch manager
of the member firm or any person inhabiting closer status of discharging out a similar function.
An agent can also be an associated person who acts in its capacity to perform services for the
association or organisation4.
The government of UK endorses to have anti-bribery policy for any institution,
organisation, business or company. If anyone commits the offence of bribery under the
authorisation of the company, then they can be held liable for it under the UK Bribery Act. Such
person includes any employee, agent, consultant, subsidiaries and joint venture partners. In order
to prevent bribery, the company must have ample procedures in order to save the person from
bribery. The penalties under this act are very grievous, critical and serious which includes
maximum penalty oi 10 years imprisonment/ unlimited fine for the individuals in respect of
corporate offence.
What are the likely penalties on conviction for bribery?
The UK Bribery Act 2010 is an Act intended to cover the criminal act relating to bribery
which came in force with effect from date 1 July 2011. It has brought major change in the UK
anti corruption law ,while replacing the previous law on bribery . This Act deals with the crimes
of bribery attempts to cover all the the major sectors within which transaction is being made
whether private or public , previously the offence concerning bribe were restricted to transaction
involving public officialdom and their agents5. It has an prospective effect therefore the act of
corruption or bribery done before commencement of this act shall not be liable for punishment .
The bribery Act has classified four separate offences;
 Offering bribe , promise to offer or giving bribe, called as general offence of bribe.
 Requesting ,receiving or accepting bribe
 bribing to foreign official in order to fulfil or obtain business interest .
4 Modlinger F, and Richter W, 'Der UK Bribery Act 2010' [2021] Risk, Fraud & Compliance.
5 Oh, Taek Rim, 'A Proposal For Corporate Criminal Liability In Domestic Bribery Law By Reference To
FCPA And UK Bribery Act' (2019) 62 Korean Lawyers Association Journal.

 Bribing to commercial organisation or by commercial organisation for advancement in
business.
PENALTIES ON CONVICTION FOR BRIBERY
Penalties for offence of bribe fall under section 11 of Bribery Act 2010.
the penalties mentioned under this act are of severe nature the extent of maximum punishment is
for the period of 10 years and/or an unlimited but not excessive fine for individuals .
If any organisation permitted bribery for any purpose , then the penalties which will be
imposed upon the organisation are;
An organisation under this Act faces huge unlimited fine which will be higher than the
fine imposed upon the individual.
The organisation will be directed to follow and implement effective prevention orders in
order to curb the offence of bribery with a view that may not happen in future. Thus an
individual or organisation if guilty of a an offence of bribe or corruption will be subject to
section 11 of the UK Bribery Act 20106
If the above scenario was referred to you for advice, what would be your assessment of the
circumstances and, consequently, your advice?
From this above scenario their can be undertaken that some of the major penalties can be
issued in order to manage and prevent all such crimes in the future aspects. And it underwent
with all the features and the management with which there is been seen that TCG is majorly been
involved in SWM and there is all the m] payments being made on the monthly instalments with
which all the due nature and the effective working can be aligned. This provides that although
they have to pay the lump sum amount they will have to maintain the payments on monthly
instalments. They can further cake a conversation and manage the working ore can eventually
manage the consultancy contract.
CONCLUSION
From this above report iota is summarised that corporate social responsibility id the
incorporated areas with which all the necessary areas and the ways with which the protection of
the compliance and the environment is addressed. Furthest UK bribery act 2010 incorporates to
6 Rose C, 'THE UK BRIBERY ACT 2010 AND ACCOMPANYING GUIDANCE: BELATED
IMPLEMENTATION OF THE OECD ANTI-BRIBERY CONVENTION' (2020) 61 International and
Comparative Law Quarterly

maintain all then law and order with the penalties to be imposed on the individuals for any issues
and function.

REFERENCES
Books and Journals
Hatchard J, 'Combating The Bribery Of Foreign Public Officials: The Impact Of The UK Bribery
Act 2010' (2020) 4 The Law and Development Review
Horder, J., 2019. On Her Majesty's Commercial Service: Bribery, Public Officials and the UK
Intelligence Services. The Modern Law Review, 74(6), pp.911-931.
Lee J, 'Exclusivism, Inclusivism And Pluralism In The UK Bribery Act 2010' (2019) 12 Journal
of International Trade Law and Policy
Modlinger F, and Richter W, 'Der UK Bribery Act 2010' [2021] Risk, Fraud & Compliance
Oh, Taek Rim, 'A Proposal For Corporate Criminal Liability In Domestic Bribery Law By
Reference To FCPA And UK Bribery Act' (2019) 62 Korean Lawyers Association Journal
Rose C, 'THE UK BRIBERY ACT 2010 AND ACCOMPANYING GUIDANCE: BELATED
IMPLEMENTATION OF THE OECD ANTI-BRIBERY CONVENTION' (2020) 61
International and Comparative Law Quarterly