Transcript Slide 1

BUSINESS BRIEFING
Managing bribery risk with BS 10500
4 July 2013
Copyright © 2013 BSI. All rights reserved.
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Welcome
Howard Kerr, Chief Executive, BSI
Copyright © 2013 BSI. All rights reserved.
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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
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Bribery: A Legal Perspective and
Understanding the Implications
Monty Raphael QC, Special Counsel,
Peters & Peters Solicitors
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Do Anti-Bribery Management Systems
Work?
Neill Stansbury, Co-founder and Director,
Global Infrastructure Anti-Corruption Centre (GIACC)
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Developing an International Anti-Bribery
Standard
Neill Stansbury, Co-founder and Director,
Global Infrastructure Anti-Corruption Centre (GIACC)
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BS 10500 Case Study
Steve Walker, Collinson Hall
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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
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Business Sectors
• Residential and Commercial Property Management
• Residential Sales
• Residential Lettings
• Commercial Sales
• Professional Services – Valuations, Rent Reviews etc
• Development Advice
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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.
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• As we operate in the services sector almost all of our
staff interact with third parties.
Leverage
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• What do we do to redress the balance ?
Employee
3rd
Parties
Employee
Leverage
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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
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Collinson Hall
anti-bribery approach
• Step 1 - Identify the vulnerable areas
Employee 3rd Parties
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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.
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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
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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
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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
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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
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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
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BSI Anti-Bribery Solution
Richard Keown, Global Director, BSI Training
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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
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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”
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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
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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
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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
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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
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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
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Q&A session
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