Anti-bribery policy

What it means

An anti-bribery policy is an internal policy that prohibits bribes and sets rules for gifts, hospitality, sponsorship, conflicts of interest and checks on business partners. It is part of a compliance programme and tells employees clearly what is allowed and what is not.

A company that has such a policy and genuinely applies it is better placed to show it did everything necessary to prevent a crime. That matters under corporate criminal liability, where investigators examine whether the company had effective controls.

Bribery is not limited to public officials. It also happens in the private sector, for example a kickback to a customer's buyer for awarding a contract. The policy therefore covers dealings with the state as well as with private partners and intermediaries.

How it works in practice

A typical policy sets value limits for gifts and hospitality, requires them to be recorded and approved above a certain amount, bans cash payments to intermediaries without a contract and lays down rules for sponsorship and charity. The rules must be specific and easy to understand.

Before working with sales agents, consultants or partners in high-risk countries, due diligence is carried out: who the beneficial owner is, what references they have and whether the fee matches the market value of the service. The process resembles KYC at banks.

The policy also needs a channel for reporting suspicions. Linking it to whistleblowing rules ensures employees can raise concerns without fear of retaliation, and management hears about a problem before it becomes a scandal.

What to watch out for

A policy that exists only on paper offers no protection. Investigations look at whether staff were trained, rules followed, gifts recorded and breaches acted upon. A formal document without practice can even count against the company.

Hidden forms of bribery, such as inflated consultancy contracts, gifts to family members or jobs for relatives, are hard to detect. Accounting is therefore an important safeguard: unusual payments without a clear purpose should raise questions.