Guidelines for Preventing Bribery and Facilitation Payments in Business
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RJC Certification -
(COP 9) Bribery and Facilitation
Payments
Training Module – March 2014
Key terms
Bribery
: offering or giving, demanding or accepting of any undue advantage,
to or from a government official, politician or private sector employee.
Facilitation payments:
paid to receive preferential treatment for something
that the payment receiver is otherwise still required to do.
Provision Summary – Bribery and Facilitation Payments
(COP 9)
9.1 Establish policy/ies that:
Prohibit Bribery in all practices and transactions by the Member and by
agents acting on behalf of the Member
Protect employees from penalty for identifying concerns
Set criteria for acceptance of gifts to or from third parties
9.2 Systems in place to manage Bribery risk:
•
Identify and monitor high risk parts of the business
•
Training relevant employees
•
Recording of relevant gifts
•
Investigation of incidences of suspected Bribery
•
Sanctions for any Bribery
Provision Summary – Bribery and Facilitation Payments
(COP 9)
9.3 Where Facilitation Payments are permitted by Applicable Law:
•
Undertake to eliminate, or reduce Facilitation Payments over time
•
Limit the nature and scope of Facilitation Payments
•
Implement controls to monitor and account for Facilitation Payments
Implementation Suggestions
•
Ensure you are aware of the Applicable Law!
•
Appoint a senior manager
•
Establish a written policy
•
Reference the policy in appropriate contracts
•
Establish written procedures for monitoring high risk parts of the
business
•
Inform employees about relevant risks
•
Ensure criteria for giving and accepting gifts and for any Facilitation
Payments are clear and practical
•
Establish a gift register
•
Inform those who receive any facilitation payments about the
Member’s policy/ies that limit their nature and scope
Example 1
Minor Non-Conformance
Finding:
The facility’s procedures do not include communicating the company’s RJC Policy
on Gifts & Gratuity with their contractors and suppliers.
Recommendation:
Member’s Policy on Gifts & Gratuity be communicated to all
contractors and suppliers. During the assessment, the change in the procedure has
already been updated into the procedures of the facility. Management has already
drafted the communication that will be sent out to their contractors and suppliers asking
them to confirm with their understanding of the policy.
Example 2
Minor Non-Conformance
Finding:
The Member has a global policy and procedure that is based on the
provisions of the RJC Code of Practices and addresses the issues of bribery.
Nevertheless, the review of the policy revealed the following gaps:
•
The policy does not cover facilitation payments and employees do not have a good
understanding of the difference between bribery and facilitation payments.
• The employee Code of Conduct only prohibits employees from receiving bribes and
does not address employees offering bribes.
• Some employees have not received formal training on global company policies
and procedures, including those related to bribery.
Recommended Steps for Improvement
It is recommended for the Member to revise the global policy and procedure to
address the gaps identified.
Furthermore, it is recommended the company hold annual trainings covering all
applicable policies and procedures for all employees.
Example 3
Major Non-Conformance
Finding:
During the audit, it was found that the risk of bribery was not identified, assessed
and documented and not communicated to relevant employees.
There is no system in place to prevent risks (e.g. double check/approval of orders with
Production Manager) and no available system to record facilitation payment, bribery
attempt and sanction applied.
Recommendation:
Member has to identify, assess and document a Bribery policy.
Training to relevant employees and communication to all workers about company
commitments should be scheduled and ensure that is understood by personnel and
others that conduct transactions on their behalf. Company should implement a system to
record facilitation payment, bribery attempt and sanction applied.
Pre-audit Checklist
Anti-bribery policy/ies in place covering
all
required content
Policy communicated to employees and agents
Documentation showing that systems are in place (eg., risk assessment,
gift register)
If facilitation payments are made, documentation of:
•
actions to reduce or eliminate,
•
controls to monitor and account for all payments
Questions?
For a
live webinar
, please raise questions
using the question pane (A) or raise your
hand (B) on the GoToWebinar platform.
For a
recorded webinar
, please email:
info@responsiblejewellery.com
Thank you for your participation!
Hello and welcome etc.
Purpose of the webinar is to provide practical information and advice relating to the B &FP provision of the RJC Code of Practices.
It provides a starting point for RJC Members interested in preparing for their self assessments and/or their certification audits,
as well as those interested in understanding H&S issues more generally.
This provision is one of the more frequent causes of minor non-conformances for RJC members seeking certification so it warrants some attention.
Establishing clear policies to prohibit bribery, managing bribery risks, and reducing facilitation payments are crucial in business operations. Implementation suggestions include staying informed on applicable laws, appointing senior managers, and establishing gift acceptance criteria. Monitoring high-risk areas, maintaining gift registers, informing employees about risks, and limiting the nature of facilitation payments are key steps to ensure compliance.
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Presentation Transcript
RJC Certification - (COP 9) Bribery and Facilitation Payments Training Module March 2014
Key terms Bribery: offering or giving, demanding or accepting of any undue advantage, to or from a government official, politician or private sector employee. Facilitation payments: paid to receive preferential treatment for something that the payment receiver is otherwise still required to do. www.responsiblejewellery.com
Provision Summary Bribery and Facilitation Payments (COP 9) 9.1 Establish policy/ies that: Prohibit Bribery in all practices and transactions by the Member and by agents acting on behalf of the Member Protect employees from penalty for identifying concerns Set criteria for acceptance of gifts to or from third parties 9.2 Systems in place to manage Bribery risk: Identify and monitor high risk parts of the business Training relevant employees Recording of relevant gifts Investigation of incidences of suspected Bribery Sanctions for any Bribery www.responsiblejewellery.com
Provision Summary Bribery and Facilitation Payments (COP 9) 9.3 Where Facilitation Payments are permitted by Applicable Law: Undertake to eliminate, or reduce Facilitation Payments over time Limit the nature and scope of Facilitation Payments Implement controls to monitor and account for Facilitation Payments www.responsiblejewellery.com
Implementation Suggestions Ensure you are aware of the Applicable Law! Appoint a senior manager Establish a written policy Reference the policy in appropriate contracts Establish written procedures for monitoring high risk parts of the business Inform employees about relevant risks Ensure criteria for giving and accepting gifts and for any Facilitation Payments are clear and practical Establish a gift register Inform those who receive any facilitation payments about the Member s policy/ies that limit their nature and scope www.responsiblejewellery.com
Example 1 Minor Non-Conformance Finding: The facility s procedures do not include communicating the company s RJC Policy on Gifts & Gratuity with their contractors and suppliers. Recommendation: Member s Policy on Gifts & Gratuity be communicated to all contractors and suppliers. During the assessment, the change in the procedure has already been updated into the procedures of the facility. Management has already drafted the communication that will be sent out to their contractors and suppliers asking them to confirm with their understanding of the policy. www.responsiblejewellery.com
Example 2 Minor Non-Conformance Finding: The Member has a global policy and procedure that is based on the provisions of the RJC Code of Practices and addresses the issues of bribery. Nevertheless, the review of the policy revealed the following gaps: The policy does not cover facilitation payments and employees do not have a good understanding of the difference between bribery and facilitation payments. The employee Code of Conduct only prohibits employees from receiving bribes and does not address employees offering bribes. Some employees have not received formal training on global company policies and procedures, including those related to bribery. Recommended Steps for Improvement It is recommended for the Member to revise the global policy and procedure to address the gaps identified. Furthermore, it is recommended the company hold annual trainings covering all applicable policies and procedures for all employees. www.responsiblejewellery.com
Example 3 Major Non-Conformance Finding: During the audit, it was found that the risk of bribery was not identified, assessed and documented and not communicated to relevant employees. There is no system in place to prevent risks (e.g. double check/approval of orders with Production Manager) and no available system to record facilitation payment, bribery attempt and sanction applied. Recommendation: Member has to identify, assess and document a Bribery policy. Training to relevant employees and communication to all workers about company commitments should be scheduled and ensure that is understood by personnel and others that conduct transactions on their behalf. Company should implement a system to record facilitation payment, bribery attempt and sanction applied. www.responsiblejewellery.com
Pre-audit Checklist Anti-bribery policy/ies in place covering all required content Policy communicated to employees and agents Documentation showing that systems are in place (eg., risk assessment, gift register) If facilitation payments are made, documentation of: actions to reduce or eliminate, controls to monitor and account for all payments www.responsiblejewellery.com
Questions? For a live webinar, please raise questions using the question pane (A) or raise your hand (B) on the GoToWebinar platform. For a recorded webinar, please email: info@responsiblejewellery.com Thank you for your participation! www.responsiblejewellery.com
