Anti-bribery management systems
Corruption in the modern world is no longer a local problem, it has turned into a transnational phenomenon that affects society and the economy of all countries, and also puts organizations at risk of criminal charges, fines, and the damage that bribery can cause to the reputation of enterprises is often underestimated.
The forms of manifestation of corruption relations usually include:
- bribery, corruption, obtaining illegal income (extortion, “rollbacks”);
theft and privatization of national resources and funds; - misappropriation (forgery, falsification, embezzlement; embezzlement of money, property fraudulently), abuse of public funds, embezzlement;
- nepotism, favoritism;
- promotion of personal interests, conspiracy (granting preferences to individuals, conflict of interests);
- accepting gifts to speed up problem solving;
- protection and patronage (perjury);
- abuse of power (intimidation or torture);
- manipulation of regulation (falsification, decision-making in favor of one group or person), etc.
Only in recent years, many declarations and conventions have been adopted in various regions of the world aimed at combating corruption as a global phenomenon. The adopted conventions consolidate the norms of international law binding on the countries ratifying these conventions.
- United Nations Convention Against Corruption (186 States Parties)
- Convention on criminal liability for corruption;
- UN Declaration on combating corruption and bribery in international commercial organizations;
- Resolution of the committee of Ministers of the Council of Europe «On the twenty principles of combating corruption»;
- and many others.
The introduction of anti-corruption conventions in the legislation of the participating states is an important component of combating corruption, since through this one of the main goals for which such conventions were aimed is achieved: the formation of an appropriate regulatory framework addressed to individuals and legal entities in the national legislation of the participating state. The actions of the latter are precisely the source of corruption.
The risks that corruption exposes organizations to can be controlled using the anti-corruption management system.
In October 2016, the International Organization for Standardization ISO published the international standard ISO 37001 «
The ISO 37001 standard can be applied by any organization regardless of the size and types of activities of the organization, the forms of corruption that it faces, as well as in any country, since it contributes to compliance of the organization’s activities with international best practices and relevant regulatory legal acts in the field of anti-corruption in all countries where the organization operates.
The complex of measures described in the standards of the anti-bribery management system, including ISO 37001, includes:
- development of anti-corruption policy,
- appointment of a person / group of persons responsible for the implementation, functioning and compliance of the Anti-Bribery Management System;
- analysis of corruption risks;
- training on anti-corruption activities,
- checking partners and projects;
- measures to draw attention to the facts of bribery and corruption;
- procedures for investigating bribery and disciplinary liability;
- internal audits;
- analysis and improvement of the management system of anti-corruption measures.
Benefits of implementing standards:
- inclusion of the best international anti-corruption experience in the standard, application by organizations of the same approaches to preventing and detecting bribery, regardless of the country in which they operate;
- demonstration to investors, top management, project owners, customers, employees, consumers and other interested parties that the organization has taken the necessary steps to counteract bribery on the part of the organization, its intermediaries or in relation to the organization;
- confidence in the effectiveness of control mechanisms in the organization (including financial control, control over procurement activities, control over the organization’s assets), which allow timely identification and minimization of risks of non-compliance with regulatory requirements for bribery;
- meeting the requirements of foreign legislation (FCPA, DOJ, SEC, SFO);
- increasing the level of expertise of projects and business partners;
- investigation and assessment of possible or existing corruption cases;
- increasing the level of transparency of business processes;
- reducing the risk of violation of legislation and the imposition of fines;
- raising the level of corporate culture and business ethics.