Appendix A
Anti-Bribery Policy

1.1 Purpose

The purpose of this document is to define the Organisation Policy on anti-bribery. The policy is based on the Bribery Act 2010 (‘Act’), which came into force on 1 July 2011, replacing and enhancing fragmented and complex existing laws which date from 1889, 1906 and 1916.

The United Kingdom signed an international treaty in 1998 to combat bribery and corruption and the new Act is intended to ensure that the United Kingdom is compliant with its obligations under that treaty.

The Act applies to offences committed on or after 1 July 2011 and the earlier statutes continue to apply to offences committed before 1 July 2011.

1.2 Scope

1.2.1 To Whom the Policy Applies

This Policy applies to all Members of the Organisation, including subsidiary companies, which means all employees and independent members of Council and its Committees, in particular:

  • Members of the Organisation who pay or accept a bribe could be personally prosecuted.
  • Senior managers are at risk of prosecution if they ‘turn a blind eye’ to bribes which are paid or accepted by the staff they supervise.

The Policy also applies to students where they are acting on behalf of the Organisation. Either in a paid or in a voluntary role.

It should be noted that ‘Commercial organisations’ can be prosecuted and, in addition to companies and partnerships, this expression is wide enough to include universities, schools and charities.

The Act does not only apply to individuals and commercial organisations in the United Kingdom but also to those who have a ‘close connection’ (business presence) with the United Kingdom.

1.2.2 Definitions

1.2.2.1 What is a Bribery and Corruption?

1.2.2.2 Giving a Bribe or Active Bribery

Bribery refers to the offering or receiving an unearned reward to influence someone’s behaviour. One example of bribery is a ‘Kickback’ – unearned reward following favourable treatment. Corruption is any unlawful or improper behaviour that seeks to gain an advantage through illegitimate means. Both are illegal.

  • An offence is committed where an individual or the Organisation gives, promises or offers any financial or other advantage which is intended to induce or reward the improper performance of a public function or business activity or is made in knowledge or belief that acceptance of that financial or other advantage will itself amount to improper performance.
  • It does not matter whether the financial or other advantage is given, promised or offered directly or through a third party.
  • The financial or other advantage does not actually have to be given – the offer is sufficient to commit the offence.
  • Reasonable and proportionate corporate hospitality should not be caught by the Act. However, entertaining which is disproportionate, lavish or beyond what would be reasonably necessary to ‘cement good relations’ may be evidence of intent to induce or reward improper performance.
  • An offence is committed where an individual or the Organisation requests, accepts or agrees to receive a financial or other advantage which is intended to induce or reward the improper performance of a public function or business activity.
  • It does not matter whether the financial or other advantage is requested, accepted or agreed directly or through a third party.
  • The financial or other advantage does not actually have to be received – requesting or agreeing to accept it is sufficient to commit the offence.
  • Reasonable and proportionate corporate hospitality should not be caught by the Act. However, entertaining which is disproportionate, lavish or beyond what would be reasonably necessary to ‘cement good relations’ may be evidence of intent to induce or reward improper performance.
  • It does not matter who pays the bribe, e.g., if a director pays a bribe to ensure that his company is awarded a contract, that is still caught by the Act.
  • An offence is committed where an individual or the Organisation gives, promises or offers any financial or other advantage to a foreign official which is intended to:
    1. influence that foreign official in the performance of his/her official functions; and
    2. secure business or an advantage for the Organisation.
  • It is only a bribe if the financial or other advantage is not required or permitted under local laws.
  • A belief that local practice permits the payment is not a defence.
  • There is no exception for facilitation payments (small bribes paid to facilitate routine Government action).
  • The offence is committed where the Organisation fails to prevent any employee or other ‘associated person’ (see below) from committing active bribery or bribery of a foreign official on the Organisation’s behalf.
  • The bribe is caught even if it takes place outside the UK.
  • The bribe must be intended to induce or reward the improper performance of a public function or business activity.
  • The bribe must also be intended to secure business or other advantage for the Organisation.
  • Knowledge of the bribe by the Organisation is irrelevant.
  • The Organisation is automatically liable for the bribery unless it can show it had ‘adequate procedures’ (see below) to prevent the bribery.
  • If the Organisation is a member of a company (e.g., joint venture or spin out) the Organisation is only liable for the corporate offence in respect of bribes paid by that company if that company is providing services to the Organisation and the bribes are paid for the benefit of the Organisation rather than the company itself.
  • Someone who is providing the Organisation with Services so includes employees, agents, consultants, contractors and external partner organisations.
  • The Act does not define ‘adequate procedures’. Government guidance makes clear that each organisation needs to decide a proportionate response based on its activities and areas of risk (see Related Documentation).

1.3 Policy Statements

1.3.1 Position Statement and Commitment

Bribery is a criminal offence, is morally wrong and exposes the Members of the Organisation to the risk of prosecution, fines and imprisonment as well as endangering the Organisation’s reputation.

The Organisation is committed to maintaining the highest ethical standards and to carrying on its activities fairly, honestly, openly and in compliance with all applicable laws.

Bribery will not be tolerated by the Organisation and all Members of the Organisation and Associates (which means [but not exclusively] agents, consultants, contractors, service providers, external partner organisations, suppliers, subsidiaries and joint venture partners) are required to uphold the highest standards of integrity in their dealings with or on behalf of the Organisation and to comply with all applicable laws of the countries in which they are working.

1.3.2 The Main Risk Areas for the Organisation

The main risk areas that have been identified for the Organisation are:

Purchases of goods and services by the Organisation, particularly the award of tenders and contracts

(e.g., building projects).

Tenders and bids for research contracts which are made by the Organisation.

The giving/receiving of gifts and hospitality.

The admission/recruitment of students (particularly from overseas).

Collaborations, joint ventures, partnerships, affiliations (academic and commercial) (particularly with organisations based overseas).

Fundraising by the Organisation (typically where the donation of funds or sponsorship is conditional on the Organisation taking/not taking some action).

Student assessments/examinations.

Subsidiaries and spin-out companies.

Members of staff should not accept any gifts, rewards or hospitality (or have them given to members of their families) from any organisation or individual with whom they have contact in the course of their work that would cause them to reach a position whereby they might be, or might be deemed by others to have been, influenced in making a business decision as a consequence of accepting such hospitality. The frequency and scale of hospitality accepted should not be significantly greater than the Organisation would be likely to provide in return.

If any Members of the Organisation identify any bribery risk which they consider has not been addressed or adequately addressed by any actual or planned anti-bribery measures, then they should report this to the Director of Finance, either directly or through their line manager.

1.3.3 Anti-Bribery Measures

The Executive Committee is the principal body which approves the Organisation’s anti-bribery measures, but these will also be reported to and endorsed by Council and, where applicable, Senate on an ongoing basis.

To promote a strong anti-bribery culture, the Organisation’s existing policies and procedures in the main areas of risk have been reviewed and, where necessary, enhanced. The key policies and procedures for the prevention of bribery are listed in the Related Documentation section and include appropriate record keeping, internal controls as well as monitoring.

Appropriate anti-bribery measures have been embedded in all relevant operational policies and procedures across the Organisation. All relevant standard contracts and documents have also been updated to include anti-bribery provisions. It is particularly important for Members of the Organisation to:

  1. Get to know every organisation which the Organisation is intending to work with – whether the organisation will be a collaborative partner, supplier, contractor, consultant or something else – and check that it has an embedded anti-bribery culture and has adopted similarly robust anti-bribery policies and procedures.
  2. Use the up-to-date and applicable standard contract or document which incorporates anti-bribery provisions and do not amend any of those anti-bribery provisions without obtaining legal advice from the Organisation Solicitor.
  3. Register gifts above £25 and hospitality above £100 (these limits apply to both single gifts and to the cumulative total of three gifts or more received within a rolling period of 12 months from the same source). All gifts and hospitality should be recorded by VCET members and Deans of Schools.

A training programme and communications strategy has been implemented to raise awareness of the Act and this Policy (see Related Documentation) and all new staff have to complete an online training session on the Bribery Act as part of their induction.

1.3.4 Offences under the Act

Three offences (see Definitions section above) apply to all Members of the Organisation:

  • Giving a bribe (active bribery)
  • Receiving a bribe (passive bribery)
  • Bribing a foreign official

A further offence the ‘corporate offence’ (see Definitions) applies only to the Organisation.

Further guidance on the anti-bribery offences is included in the Appendices.

1.3.5 Reporting Bribery

All Members of the Organisation have a responsibility to help detect, prevent and report not only bribery but all other suspicious activity or wrongdoing.

All concerns or suspicions of bribery, fraud or corruption must be reported immediately so that the matter can be investigated, and appropriate action taken in accordance with the Counter Fraud Policy and Response Plan (see Related Documentation). In the first instance any concerns about bribery must be reported to the Director of Finance. If the issue relates to the Director of Finance, the matter must be reported immediately to the Chief Operating Officer.

1.4 Policy Enforcement

Any breach of this Policy will be regarded as a serious matter and is likely to result in disciplinary action or removal from office. Managers may also be subject to disciplinary sanctions for supervisory failures. The Organisation will also determine whether a breach of this Policy is such as to be referred to the Police.

The Organisation will avoid doing business with agents, consultants, contractors and suppliers who commit bribery and may end contracts with them.

Range of Possible Penalties (Criminal and Internal Sanctions)

For individuals:

  1. A criminal record with a sentence of imprisonment of up to 10 years and unlimited fines.
  2. Employees dismissal or other disciplinary sanctions.
  3. Employees removal from office.
  4. Damage to reputation.

For the Organisation:

  1. A criminal record with unlimited fines and a potential ban from bidding for future research and other public contracts.
  2. Damage to reputation and loss of public trust and confidence.
  3. Adverse impact on donors, recruitment of Members of the Organisation.
  4. Regulatory and funding issues.
  5. Disruption to business activities.

1.5 Related Documentation

1.5.1 Related Policies

The following documents can be found on the Organisation Policy and Procedure pages:

  • Financial Regulations (Financial Regulations and Accounts Section)
  • Counter Fraud Policy and Response Plan (Financial Regulations and Accounts section) Human resources Section

     –Welcoming New Colleagues

     –Disciplinary Policy

     –Whistle-Blowing Policy

  • Gift Acceptance and Ethical Fundraising policy (under Financial Management)
  • Register of Interests, Gifts and Hospitality Policy (Declaration of management of Conflicts of Interest) (under Core and Organisational Governance)
  • Code of Conduct for employees and executive

1.6 Training

Anti-bribery E-Learning toolkit within new staff induction section of Organisation website.

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