TRACE welcomes the practical guidance provided by the OECD in its March 3rd release of a “Good Practice Guidance on Internal Controls, Ethics, and Compliance,” which now forms Annex II to the Working Group on Bribery’s Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions initially issued on November 29, 2009. The Good Practice Guidance was negotiated and agreed by the 38 member states comprising the Working Group and, as such, represents the first real attempt to conform anti-bribery compliance expectations across borders. Going forward, the Working Group’s monitoring mechanism will include monitoring countries’ progress in encouraging their respective private sectors to implement the document’s principles.
As emphasized in the OECD press release, the Good Practice Guidance calls on companies and organizations to: (i) adopt a clear and visible anti-bribery policy that is strongly supported by senior management; (ii) instill a sense of responsibility for compliance with the policy at all levels of the company, as well as independent compliance structures; (iii) keep up regular communication and training on foreign bribery for all employees, as well as with business partners; and (iv) encourage observance of anti-bribery compliance measures, and disciplinary procedures to address their violations. The document also recommends that companies implement compliance procedures specifically addressing due diligence on business partners, gifts, hospitality and travel, political contributions, charitable donations and sponsorships, facilitation payments, and solicitation and extortion.
The Good Practice Guidance also contains a section on “Actions by Business Organisations and Professional Associations.” The section discusses the important role business organizations and professional associations can play in supporting companies’ efforts to develop and implement effective compliance programs by (i) disseminating information on foreign bribery issues, including regarding relevant developments in international and regional forums, and access to relevant databases; (ii) making training, prevention, due diligence, and other compliance tools available; (iii) providing general advice on carrying out due diligence; and (iv) providing general advice and support on resisting extortion and solicitation. TRACE is proud to be an active member of the community of organizations supporting businesses in these crucial areas.
