OECD Recommendations Support Global Anti-Corruption

Organisations today operate in an increasingly complex global marketplace, where procurement strategies must align not only with internal policies but with a diverse range of international regulations.

Across the world, procurement legislation governs how public entities acquire goods and services and works to ensure transparency, accountability and fairness in the use of public funds.

With approximately 195 countries, each with its own set of procurement laws and countless sub-national regulations, the landscape can be challenging to navigate.

The ethical dilemma in international business

While organisations might adhere strictly to their internal and national procurement strategies, challenges arise when they engage in global transactions. At times there’s a temptation to overlook ethics, believing that these actions might go unnoticed under different jurisdictions.

However, most countries have ratified international conventions and treaties to prevent and combat corrupt activities.

Global conventions against corruption

International efforts to curb corruption include several fundamental conventions and treaties:

• United Nations Convention against Corruption (UNCAC): This convention focuses on preventing and criminalising corruption, emphasising international cooperation and recovering assets linked to corrupt activities.
• African Union’s Convention on Preventing and Combating Corruption: A regional commitment to fight corruption across the African continent.
• Organisation for Economic Cooperation and Development (OECD) Convention: Aims to combat bribery of foreign public officials in international business transactions.

These agreements serve as a framework for nations to develop and enforce their own anti-corruption laws, creating a global standard for ethical business practices.

The OECD Recommendations: A framework for ethical business

In 2011, the OECD introduced its Recommendations on Combating Bribery, Bribe Solicitation and Extortion. These guidelines were a positive step in the global fight against corruption, obliging companies to implement several key measures:

• Prohibit the payment or solicitation of bribes.
• Develop and enforce anti-bribery policies and controls.
• Conduct regular risk assessments and due diligence.
• Educate employees and agents on anti-bribery practices.
• Publicise anti-bribery initiatives and avoid unlawful political contributions.

For  organisations, adhering to these recommendations isn’t just about compliance; it’s about integrating ethical practices into everyday operations, promoting good corporate governance and mitigating the risks associated with bribery.

The global fight against corruption

The global playing field of accountability for corruption has changed significantly, especially with legislation like the UK Bribery Act (UKBA), enacted in July 2014.

The act introduced the corporate offence of failing to prevent bribery, compelling organisations associated with the UK to implement robust anti-corruption measures, regardless of where the act of corruption occurs. Similarly, the Foreign Corrupt Practices Act (FCPA) in the United States has long served as a global benchmark for anti-bribery enforcement.

The Consequences of Non-Compliance

In today’s global anti-corruption compliance environment, ignoring the creation of an anti-bribery culture is a risk no organisation can afford.

For instance, the US Department of Justice takes a broad approach to jurisdiction and has warned that it will find jurisdiction regarding bribes paid to foreign officials if transactions are routed through US accounts or emails. It means that even  organisations operating outside the US may still fall under its regulatory reach.

The cost of corruption

The cost of corruption far exceeds that of preventing it. For organisations looking to thrive in a global market, adhering to international anti-corruption standards is not just a legal obligation but a business imperative.

Building a strong anti-bribery culture and ensuring robust compliance measures through procurement strategies can help protect  organisations from the far-reaching consequences of corruption.

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