Overview

Corrupt practices in the form of bribes and kickbacks (part of an income paid to a person having influence over the size and/or payment of the income by some illegal arrangement) are common phenomena in the world of international business. Such practices result in market distortions and increase the financial costs of doing business, thus undermining business performance. Businesses engaging in corrupt practices also expose themselves to reputational risks that seriously undermine their attractiveness as a business partner.

Realising the harmful effects of corruption, both in economic and social terms, regional and international organisations, such as the Organisation for Economic Cooperation and Development (OECD) and the United Nations (UN), among others, have adopted anti-corruption conventions both in the business and wider context. Chapter 21 examines the conventions drafted by the OECD and the UN with a view to seeing how far these conventions can play a role in reducing corruption and considers the mechanisms that the private sector can adopt to improve their business integrity. A brief account is also provided of the United Kingdom (UK) Bribery Act 2010 and, in particular, focuses on its novel provision in section 7 aimed at promoting integrity in the business sector.

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