Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Trade Capacity Vietnam sequa, March 2017 Risks in Doing Business Overview Modules 1 - 3 1 Risks for individuals and organizations Involvement in corruption is dangerous for you and your organization: For you For your organisation sequa, March 2014 Criminal liability, possible fine or prison Criminal liability and possible fine sentence Civil liability and paying out of damages Civil liability and paying out of damages Loss of reputation Loss of reputation Loss of employment Loss of business Dismissal from membership of any professional association of which you are a member Financial loss where your organization has been the victim of corruption Debarment from projects What is Corruption 2 Criminal liability for corruption (1) sequa, March 2014 How does an individual incur criminal liability for corruption? • Those directly involved: An individual who is directly involved in committing a corruption offence may be liable for the offence • Those indirectly involved: An individual may be liable for a corruption offence where he is indirectly involved in committing the offence • Those in authority: A person in authority (e.g. chief executive, director, financial manager or commercial manager) may be liable for a corruption offence even where he was not directly involved in committing the offence, but where he either expressly authorised the offence or that type of offence, or knew of the offence and either consented to it or was wilfully blind to it • Aiding and abetting: An individual may also be liable for aiding and abetting where he has aided or assisted in the committing of the offence What is Corruption 3 Criminal liability for corruption (2) Intention To be criminally liable for a corruption offence, you will normally need the necessary criminal intention. sequa, March 2014 In the case of bribery, this will normally require that you knew of the corrupt circumstances, or that you were wilfully blind to the corrupt circumstances. You may be liable for fraud if you make an oral or written statement which you do not honestly believe to be true. What is Corruption 4 Criminal liability for corruption (3) sequa, March 2014 How does an organization incur criminal liability for corruption? • Through the corrupt acts of its officers or employees: if he/she was acting within the course of his/her employment • Through the corrupt acts of its agents: through the corrupt act of an individual or organisation which has been appointed to act on the company's behalf, and where the corrupt act is committed in the course of that appointment • Through the corrupt acts of its related companies or business partners: by a subsidiary or associated company, joint venture or consortium partner, sub-contractor or supplier, where that corrupt act could benefit the company's business What is Corruption 5 Criminal liability for corruption (4) “Turning a blind eye” sequa, March 2014 It occurs where a person in authority suspects that there is a risk of corruption in relation to a business transaction in which the company is involved, but deliberately avoids making inquiries and taking reasonable preventive action. It is, therefore, important for managers to make proper inquiries should they suspect corruption, or the risk of corruption, in relation to the company's affairs, and to take reasonable steps to prevent or stop the corruption. If they fail to do so, their inaction may make both them and their company liable. What is Corruption 6 Voluntary vs. coerced corruption Voluntary corrupt act: The act undertaken by the relevant party with the deliberate intention of gaining a competitive advantage or obtaining additional unjustified compensation Coerced corrupt act: sequa, March 2014 The act undertaken so as to “level the playing field” Some offences are committed in the mistaken belief that practices, such as the inflation of claims, or the wrongful withholding of payment, are normal business acts and do not constitute criminal offences What is Corruption 7