This article outlines how bribery and corruption can affect organisations according to the law, and how organisations can implement measures to protect their reputation and conduct against these acts.
Bribery and corruption is a prevalent topic in South Africa. It is highly problematic in many developing and first world countries as well. These practices have severe negative consequences in society.
Bribery, Corruption, and related activities are known to:
- Discourage investment and growth; and
- undermine the rule of law and democracy; and
- undermine the efficiency and quality of government; and
- be conducive to an increase in the prevalence of organized crime.
Every responsible citizen should, as a matter of principle reject these activities and their consequences and apply every measure at its disposal to combat them.
Bribery and Corruption in Organisations
Involvement in any of these activities, or even the perception, that an organization condones them, will have dire consequences for its corporate reputation.
In addition to the above, legislation outright criminalises corrupt activities, and may expose an organisation and its functionaries to criminal prosecution. This legislation includes the provisions of the:
- The Financial Intelligence Centre Act
- The Public Finance Management Act
- The Prevention of Organised Crime Act, 1988 (POCA)
- The Prevention and Combating of Corrupt Activities Act, 2004 (PCCAA)
According to law, what constitutes Bribery and Corruption?
The Prevention and Combating of Corrupt Activities Act provides that:
- Any person who, directly or indirectly accepts or offers any gratification from another person to act or to influence such other person to act in an illegal, dishonest unauthorized, incomplete or biased fashion in carrying out any duty or in the performance of any power or function or legal obligation, is guilty of a criminal offence. (Summarised)
- Persons dealing with property that formed part of any gratification, who attempts, conspires and incites such activities will also be guilty of an offence.
- Any person who holds a position of authority, which includes a person who is responsible for the overall management of a business, and who knows or ought reasonably to have known of such offences, must report such activities to the South African Police services, failing which he/she will also be guilty of an offence.
The number of activities that would constitute corrupt activities, in terms of the said act, are limitless and subsequently impossible to catalogue.
How can organisations attempt to protect themselves against these acts?
A proper understanding of the concept of corrupt activities is imperative for each and every person and the implementation of a properly framed policy may stand between the functionary and a prison sentence.
It is recommended that every business have a well-framed and properly worded policy that governs the actions around acts of corruption and bribery. This will ensure that the organisation and its constituents are well-prepared in the event that these acts occur, and that the organisation takes a clear stand against these actions to protect its reputation and the well-being of its stakeholders.
