Topic: Anti-Bribery and Corruption

July 27, 2011

Global Corruption Enforcement is Heating Up - And Employers are Taking Notice

Posted by Shanti Atkins

Managing bribery and corruption risk is taking center stage in corporate boardrooms, becoming one of the most critical compliance challenges for employers. The World Bank estimates more than $1 trillion is paid in bribes to foreign officials each year, and global corruption increases the cost of doing business by 10-30%. A corruption scandal can destroy an organization’s reputation and result in significant fines, penalties and jail time.

Employers are also facing increasing global corruption enforcement.  According to the US Department of Justice (DOJ), FCPA fines made up half of all DOJ criminal division penalties in FY 2010, totaling a record high $1B. The 2011 number is sure to be even larger as FCPA investigations are one of the highest priorities for the FBI. Adding fuel to the fire, the much talked about UK Bribery Act (UKBA) went into effect July 1, 2011. The act obviously impacts UK companies, but US companies with current or planned offices or sales activities in the UK also need to get themselves quickly up to speed on the new provisions.  

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