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BUSINESS BRIEFING Managing bribery risk with BS 10500 4 July 2013 Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 Welcome Howard Kerr, Chief Executive, BSI Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 The City of London Police and Economic Crime BSI Launch Commissioner Adrian Leppard 4th July 2013 How bad is corruption? • Most recent national Gallup survey – Transparency International o Perception that UK corruption has increased o 92.7% would like to report it, but only 30.1% would know where to report it o Most did not trust anybody to fight corruption or did not know who to trust • Unclear picture – unsure where to report, prosecuted for other offences • Enabler for other crimes – inc. linked to organised crime • Whilst not many Bribery Act prosecutions yet – deterrent effect? • Consider impact on business and developing countries! The City of London Police (CoLP) • CoLP has the national policing role for investigating bribery and corruption by UK entities in overseas territories that receive development aid • Overseas Anti-Corruption Unit – est. in 2006 (over 150 cases in over 50 countries and restrained over £4m of assets) • Founder member of the International Foreign Bribery Taskforce - UK, Australia, USA and Canada law enforcement • Leading the establishment of a similar taskforce across Europe • A member of the working group that developed the BS 10500 Anti-Bribery Management System standard and is part of the project team developing it into a proposed international (ISO) standard. Why CoLP/BSI? • Implementation helps companies ensure their anti-bribery practices are robust through third party certification and reduces instances of bribery & corruption internationally. • City of London Police worked with BSI to develop BS 10500 Anti-Bribery Management System training. • Training benefits from City of London Police’s experience of and approach to investigating bribery & corruption and BSI’s expertise in business management systems. • BS10500 is one of the factors City of London Police takes into account when using its investigative discretion to assess a company’s efforts to implement adequate procedures against bribery. Benefits to business • Meets growing demand for sufficient anti-bribery measures • Demonstrates legal compliance with the correct procedures • Monitors/manages risk across an organisation and its supply chain • Potentially reduces insurance premiums and prepared for legal action • Provides a potential pre-qualification requirement for tender applications. City of London Police Fraud Academy • City of London Police has significant experience of developing and delivering training through its Economic Crime & Fraud Training Academy. • It draws upon operational policing experience to train organisations in the prevention, detection and investigation of bribery & corruption. •Fraud training curriculum: - Public Sector – Police/Agencies - Private Sector – Fraud investigators - National / International • Develop a Centre of Excellence - Knowledge sharing/best practice Future Opportunities • Public and industry confidence • Better use of existing resources • Effective partnership with industry • Improve industry/public awareness • International cooperation Investigating bribery Oliver Shaw, Detective Chief Superintendent, City of London Police Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 Bribery: A Legal Perspective and Understanding the Implications Monty Raphael QC, Special Counsel, Peters & Peters Solicitors Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 Do Anti-Bribery Management Systems Work? Neill Stansbury, Co-founder and Director, Global Infrastructure Anti-Corruption Centre (GIACC) Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 Developing an International Anti-Bribery Standard Neill Stansbury, Co-founder and Director, Global Infrastructure Anti-Corruption Centre (GIACC) Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 BS 10500 Case Study Steve Walker, Collinson Hall Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 Collinson Hall BS 10500 - Pilot Steven Walker Owner and Managing Director of Collinson Hall Established in St Albans in 1989 Annual Turnover circa £1.3m Total staff of 24 (14 full time – 10% regular part time) Fellow of National Association of Estate Agents (NAEA) Member of the Association of Residential Letting Agents (ARLA) • Member of the Property Ombudsman Scheme • Market position : Leading Independent General Practice Agent. Heavily dependent on recommendation and reputation • • • • • • 17/07/2015 16 Business Sectors • Residential and Commercial Property Management • Residential Sales • Residential Lettings • Commercial Sales • Professional Services – Valuations, Rent Reviews etc • Development Advice 17/07/2015 17 BS 10500 • Why did Collinson Hall get involved in the pilot? o Culturally aligned approach. It is how we want people to see us. o Aware of potential negative perception of staff with family connections to contractors. • Had in any event introduced new systems to address this. o In the process of a general review of staff policies and Company handbook to address precisely the issues raised within BS10500. 17/07/2015 18 • As we operate in the services sector almost all of our staff interact with third parties. Leverage 17/07/2015 19 • What do we do to redress the balance ? Employee 3rd Parties Employee Leverage 17/07/2015 20 Collinson Hall approach to BS 10500 • By Departments o Assessed all potential risks and scenarios with departmental managers o Audit our current policies and systems to assess each potential risk to identify weaknesses in our system o Add new checks and procedures for risks not adequately covered • Information disseminated to all staff o Staff meetings o Via staff contracts o Company Handbook 17/07/2015 21 Collinson Hall anti-bribery approach • Step 1 - Identify the vulnerable areas Employee 3rd Parties 17/07/2015 22 Audit of potential bribery scenarios Some examples (not exhaustive) • Offer of payment from a developer to gain advantage when bidding on a development opportunity • Offer of payment from a “contractor” to have the advantage when bidding in a competitive tender situation • Promise of a “re-sale” from a builder – whereas the better buyer is an owner occupier. 17/07/2015 23 Collinson Hall anti-bribery approach • Step 1 • Communicate the Culture • Define the company anti-bribery policy o Incorporate in the Company Handbook, staff contracts, induction process • Improve internal systems and procedures o Peer review o Dual authority o Clear gifts policy 17/07/2015 24 Collinson Hall anti-bribery approach • Step 2 – Provide additional on-going guidance o Legitimate networking vs bribery o Industry “standards” i.e. Property developer offering resale of new homes o Transparency o Communication o Teamwork 17/07/2015 25 17/07/2015 26 Consideration for small companies o Less resources in terms of a dedicated HR department But…. • Culturally we have had no resistance – There is a short line from the head of the company to all members of staff. • Ease of communication • Greater ability for implementing change 17/07/2015 27 In Conclusion • BS10500 would be useful as a further tool to o Focus formally and systematically on an issue that might otherwise be overlooked or avoided o Provide re-assurance to staff, associates, clients and potential clients o Use as a marketing tool to differentiate the Company from competitors o Assist in regulating the sector and raise the expectations of the public o Act as a deterrent for all parties; staff, associates, contractors, public 17/07/2015 28 In Conclusion • Inexpensive and straightforward to operate the Company in accordance with BS 10500 • Would hope that the industry would embrace the Standard in a drive to improve the perception of the sector • Would hope that there are real financial incentives through Professional Indemnity discounts in recognition of the improved controls • Clear benefits to the Company, its staff and to its clients 17/07/2015 29 BSI Anti-Bribery Solution Richard Keown, Global Director, BSI Training Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0 A simple guide to your BS 10500 journey with BSI Getting started Find out what anti-bribery means and why BS 10500 is important to your organization Implementing the solution Discover the best way to implement a BS 10500 management system in your organization Gaining certification Get independent assessment and gain certification for your BS 10500 management system Copyright © 2012 BSI. All rights reserved. Making excellence a habit Make sure your BS 10500 management system keeps delivering the best for your organization 31 A simple guide to your BS 10500 journey with BSI Getting started Case Studies Information Webinars BS 10500 Standard Training Courses Implementing the solution Self Assessment Checklist GAP Analysis Training Courses ACP Consultants Entropy Software Gaining certification Entropy Software BSI Assessment Copyright © 2012 BSI. All rights reserved. Making excellence a habit Entropy Software Continuing Assessments 32 BSI training and BS 10500 • BSI training helps organizations to better manage their antibribery risk by: Speeding up the implementation of their BS 10500 management system “Doing it right first time” Effectively evaluating the performance of their BS 10500 management system “Identifying weaknesses” Successfully improving their BS 10500 management system “Increasing robustness” Copyright © 2012 BSI. All rights reserved. 33 BSI’s training philosophy • BSI adopts an accelerated learning approach to training • Accelerated learning focuses on creating knowledge rather than consuming it. It: • Is proven to speed up learning and improve knowledge retention • Relies on student collaboration and class participation • Emphasises practical activities and positive feedback • Results in engaging classes where students “learn by doing” • Has a bigger impact on job performance than traditional “lecture” style learning Copyright © 2012 BSI. All rights reserved. 34 The BS 10500 training portfolio • Developed in association with the City of London Police Economic Crime & Fraud Training Academy • The portfolio is the most comprehensive in the marketplace today Copyright © 2012 BSI. All rights reserved. 35 BS 10500 training courses Requirements of BS 10500 Covering the key requirements and context of BS 10500 and the benefits of an Anti-bribery Management System Implementing BS 10500 Learn how to implement an effective Anti-bribery Management System with practical exercises, group activities and class discussions Understanding Bribery and Effective Due Diligence Training Course* Learn about the nature and impact of bribery, its harm, the risk it poses to organizations and the methods used to identify risk through an effective assessment Internal Auditor BS 10500 Learn the knowledge and skills required to undertake an internal audit against the requirements of an Anti-bribery Management System Lead Auditor BS 10500 Learn the knowledge and skills required to lead a system assessment of an Anti-bribery Management System; emphasizing your ability to conduct 2nd party assessments of suppliers and subcontractor Copyright © 2012 BSI. All rights reserved. 36 BS 10500 certification with BSI Certification offers many advantages, including: • Reduces the risk of being found guilty of a criminal offence (individually and as an organization) • Increases customer confidence in dealing with an organization • Improve the confidence in relationships with partners • Sends a clear signal to employees and suppliers that the organization will not engage in corrupt activities • Reduces the costs associated with bribery • Anti-bribery procedures might become a requirement in many Invitation To Tender processes in future Copyright © 2012 BSI. All rights reserved. 37 Why BSI? • Relevant: we’re the business standards company that can help your organization improve by • improving performance, managing risk more effectively and enabling sustainable growth • Global Network: helping you grow internationally and manage compliance throughout your supply chain • Over 100 years experience: the world’s first National Standards Body and a founding member of ISO • Complete: offering end-to-end solutions from Standards writing to training, assessment and ongoing support services • Industry thought leaders: we continue to shape the world’s most widely adopted standards, so you can stay ahead • Connected: lobbying and assisting governments to help promote the role of standards alongside regulation • Committed: helping communities develop standards to self regulate and harmonize • Trusted: a Royal Charter Company that invests in creating new standards and improving clients’ experiences of working with BSI • Our credo ‘Making Excellence a Habit’ is our commitment to excellence in client service and innovation Copyright © 2012 BSI. All rights reserved. 38 Q&A session Copyright © 2013 BSI. All rights reserved. IOSH 2013. Rev 0