How companies can curb international bribery under OECD's new rules
Paris, 23 April, 1999 - Now that the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions is in force companies doing business abroad have to be sure they are complying with the new rules of the game.
How should a manager respond if a government official says his company can win a contract if it deposits US$50,000 in an offshore bank account? What are legitimate travel and entertainment expenses? When does a gift become a bribe? Where should companies draw the line for zealous sales agents who insist that fat commissions are the only way to secure a fat contract?
The answers to these and many other questions that will help companies to conform to the requirements of the Convention are to be found in "Fighting Bribery: A Corporate Practices Manual", now available from the International Chamber of Commerce.
The book helps managers who have to adjust to a new environment in which sales teams are committing a criminal offence if they try to bribe foreign public officials, no more immune from prosecution than if they resorted to bribery at home.
Written by business executives and lawyers, "Fighting Bribery" is a practical guide to staying out
of trouble - and helping to beat the scourge of bribery, with its distortion of trade and competition and squandering of resources on the undeserving. The book covers such thorny questions as the appropriateness of political contributions, how to develop watertight accounting and auditing procedures and how to stamp out money laundering.
It is packed with practical examples from existing company codes. "What if a supplier sends me a 10-pound box of prime steaks for Christmas?" The answer is: "No, return the steaks to the donor or send them for donation to a food bank. A polite thank you letter and explanation of company policy on accepting business courtesies might be appropriate."
The OECD Convention came into effect on February 15 after 34 countries had ratified. Signatory countries account for over 70% of world exports and more than 90% of foreign investment.
"Fighting bribery" can be ordered from the Business Bookstore.
Standing Committee on Extortion and Bribery