According to a recent study, only 52 per cent of businesses inspect their suppliers to check if they comply with the UK Bribery Act 2010. Bribery isn’t something to be taken lightly, so it does make you think why firms fail to vet their suppliers for this act.
The study was conducted the Fraud Investigation and Dispute Services team at Ernst & Young, and found that even if a supplier didn’t comply with the act, only two fifths of companies would stop doing business with the suppliers in question.
Speaking of the findings, a Partner at Ernst & Young, John Smart, said: “In cases where bribery and corruption are discovered, the consequences for companies under the law may be serious.
“It’s worrying to see that businesses are failing to make sure that their suppliers are complying with the UK Bribery Act, especially as the Act came into effect over a year and a half ago.”
With the recent horsemeat scandal, many firms may be more inclined to carry out checks on their suppliers to avoid having a bad egg in their supply chain.
John continued: “There has been much focus on supply chains and how much companies know about suppliers and agents acting on their behalf.”
Bribery is not the only issue that firms fail to check, as only 48 per cent complete a due diligence check on their suppliers. Smart wants businesses to be aware of the consequences of breaches in supply chains.
He concluded: “Many directors are still unaware that they can be held personally accountable for any failings in this area.
“This means that senior managers and directors risk significant prison terms and large fines for non-compliance in which they are personally involved, even if the breach is caused by the actions of a third-party supplier.”
Do you carry out checks on your suppliers? If you found them to be in breach of the UK Bribery Act would you continue to do business with them or would you find another supplier?
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