Why it is so important an organisation should be able to identify and mitigate the Anti-bribery risk within its businesses?
Below issues are some of the main reasons of ‘why’.
1. Legal Compliance: the Anti-bribery laws are in place in many jurisdictions worldwide and non-compliance can result in hefty fines, legal action, and reputational damage
2. Ethical Standards: Accepting or offering bribes undermines the ethical standards of an organisation and can lead to negative perceptions from stakeholders
3. Reputation: Bribery-related scandals can severely damage a company's reputation, which can ultimately lead to a loss of business, clients, and revenue
4. Employee Morale: A culture of bribery can create a toxic work environment, which can negatively impact employee morale and productivity
5. Fair Competition: Bribery distorts competition and can create an uneven playing field for businesses, making it harder for ethical companies to succeed
6. Financial Risk: The cost of bribery can be significant, from the actual bribe to the potential legal and reputational costs
7. Customer Perception: Customers may perceive a company that engages in bribery as untrustworthy and unethical, which can lead to loss of business
8. Shareholder Value: Bribery can cause a decline in shareholder value due to the negative impact on the company's financial performance and reputation
9. Regulatory Scrutiny: Organisations that fail to manage anti-bribery risk may face increased regulatory scrutiny and potential penalties
10. Corporate Social Responsibility: Managing anti-bribery risk is a key aspect of a company's corporate social responsibility efforts, demonstrating a commitment to ethical business practices
For BDO, we commit to assist our clients with our exceptional services to ensure clients’ sustainability and profit growth, and to comply to local laws and regulations. We are here to assist our clients to build the Anti-bribery foundation (policies and procedures, programs and trainings, etc), its management system, monitor and evaluation the effectiveness of current controls, identify the potential and most exposed areas to such risks, and put appropriate mitigations in places.
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