Dilemma 13:  Working in a new country - Answer

There are some countries, and some sectors in some countries, where it is either impossible or very difficult to undertake work without becoming involved in corruption.  For example, it may be extremely unlikely for a contract award to be given, or a visa or customs clearance to be granted, without a bribe needing to be paid.  Even if your company is confident that its own employees will not pay a bribe, how confident is it that the company’s agent, joint venture partners and sub-contractors will not pay a bribe which could implicate the company?  For example:

• A joint venture partner may pay a bribe to the client so that the whole joint venture (in which the company is a partner) wins the contract. 
  
  

• A major sub-contractor of the company may pay a bribe to the client so that the company wins a contract from the client, with the result that the sub-contractor wins a sub-contract from the company
  
  

• The agent may pay bribes in order to get the company’s equipment through customs.

In each of the above cases, the bribe may be deemed to have been paid on behalf of the company, resulting in the company and its responsible employees incurring criminal liability. 

Therefore, before working in any country, the company’s management needs to be satisfied, after making reasonable and proportionate enquiries and giving the issue reasonable and proportionate consideration, whether the risk of bribery posed by the country and sector appears to be sufficiently low that it is reasonable to allow the business relationship, transaction or project to proceed or continue. 

If, after making these enquiries, the company’s management believes there is so much corruption in the government of that country, or in the management of that sector, that it would be highly likely that bribes would need to be paid (either by the company, or by its agents, JV partners or sub-contractors) to receive contracts, visas, payments, exchange control approvals etc., then the company should avoid that territory or sector.

If, after making these enquiries, you believe that the risk of bribery posed by the country and sector appears to be sufficiently low that it is reasonable to allow the business relationship, transaction or project to proceed or continue, then you can proceed, but you need to implement anti-corruption procedures in relation to appointing and managing the agent, joint venture partners and sub-contractors.  (These are outlined in Dilemmas 6, 8 and 14).