Corporate Liability
The MACC Act was amended on June 1, 2020, to incorporate corporate liability for bribery and corruption under Section 17A.
The MACC Section 17(A) Act is enforced to fulfill international responsibilities under Article 26 of the UNCAC, which deals with legal liability. The MACC Act currently focuses mainly on pursuing people involved in corruption. Section 17A was enacted to make it possible for organizations engaged in corruption activities to be prosecuted. Unless appropriate safeguards can be established, those associated with the organizations will be deemed to have committed the same crime.
The Key Characteristics of Section 17A
Section 17A of the MACC Act makes it criminal for a corporation to participate in corruption-related conduct that benefits the corporation. A commercial firm commits a crime whenever a person linked with it corruptly distributes, offers, or promises any gratification to any individual to win or maintain business or a business advantage for the commercial organization, according to Section 17A.
With the adoption of Section 17A next year, the following will be possible:
- The organizations/companies for which these persons work will be held liable if they fail to prevent corrupt behavior.
- The corrupt behaviors of ordinary workers will impact their organizations/companies.
Concerns about bribery and corruption should be highlighted as part of your company’s social duty, and they might be included in your basic risk assessment. Nonetheless, the amount of data collected must be proportional to the threat level. Bribery is more prevalent in the construction sector, especially among large firms and across the supply chain. There is a lot of law around anti-bribery and corruption risk assessments, and understanding it may help you create your review to cover all of the bases.
Establishing an Anti-Bribery and Corruption Risk Assessment Strategy
Companies should make it clear that they will not accept bribes or corruption. By adopting an anti-bribery and corruption plan, businesses may demonstrate their commitment to fighting crime and corruption both internally and worldwide. This not only establishes a standard for what is and is not acceptable for project staff, but it also displays the construction company’s commitment to uphold the law and contribute to the industry’s fight against bribery and corruption.
According to the Anti Bribery Risk Assessment Template, firms may benefit from choosing a senior counter-corruption champion to promote anti-bribery and corruption themes in the workplace. Your whole team should be cautious of the strategy and their tasks; having a point of contact who is particularly informed about the company’s anti-bribery and corruption risk assessment may aid in providing guidance and enforcing the rules.
Bribery is defined as “the giving, promising, agreeing to acquire, or delivery of monetary or other incentives to encourage or reward unlawful functions or activities, and the requestor acceptance of such a benefit,” according to the Bribery and Corruption Assessment Template.
How to Assess the Bribery Threat
According to the Bribery Act of 2010, the following are some of the most commonly observed dangers:
- Danger to the country
- Sectoral Risks
- Transactional Risk
- There’s a chance you’ll miss out on a lucrative business opportunity.
- Business Partnership Risks
You will obtain a detailed understanding of these areas if you base your anti-bribery and corruption risk assessment on this act. While some are unique to specific sectors than others, most of them will apply to construction firms.
