A Critical Analysis of the Relationship Between Corporate Governance Standards and the Bribery and Corruption Framework under the Bribery Act 2010 In UK
Abstract
This research study presents a critical analysis of the relationship between corporate governance standards and the bribery and corruption framework that exists under the Bribery Act 2010 in the United Kingdom. By bribery, we generally refer to providing a financial or other advantage to an individual so as to encourage the individual to perform activities or functions improperly, or to provide a reward for already having carried out such behaviour. The Bribery Act 2010 was introduced in order to modernise and update the existing legal framework governing bribery offences, and to introduce a new criminal offence of failure of commercial organisations to prevent bribery under section 7 of the Bribery Act 2010. This research study provides a critical analysis of the concept of corporate governance and its interaction with the concept of corporate compliance. The study seeks to identify and critically assess the bribery and corruption framework that exists under the Bribery Act 2010. Similarly, it critically assesses practical enforcement of bribery offences through the use of deferred prosecution agreements, and provides a brief comparative assessment of the approach used in the United States. It also critically analyses the relationship that exists between corporate governance standards in practice, and the bribery and corruption framework presented within the Bribery Act. Overall, it was identified that firms could extensively benefit by establishing a bribery prevention dynamic, which embeds policies, procedures, and strategies in all aspects of the administration, management, and operations of businesses. It is identified that, in practice, this can be effectively implemented by adapting existing corporate governance practices within firms. However, in reality, it was found there still seems to be a clear dissonance between the strong substantive provisions of the Bribery Act 2010, and its comparatively weak implementation and enforcement in practice.