When the Corporate Liability provision – Section 17A of MACC Act (Amendment) 2018 – comes into force on 1 June 2020, companies shoulder the burden of proof that they have put in place adequate procedures to mitigate the risk of corruption and bribery in their organisation. These are designed to protect both the business and their directors and senior management from personal liability in the event of a corruption investigation by the enforcement authorities. The guidelines, whilst not being prescriptive, nevertheless forward compelling arguments that an anti-corruption program designed and developed by compliance professionals both meet the spirit and the intent of adequate procedures.
This 5 part series on T.R.U.S.T, the acronym for the adequate procedures guidelines, will discuss each element of the procedures that work best when encapsulated within an organisation wide anti-corruption program.
Top Level Commitment
The Board of Directors and C-Suite/Senior Management are the de facto Top Management of the business. To them then falls the responsibility to walk the talk insofar as ethics and integrity is concerned. This means complying with the applicable regulatory framework on anti-corruption prevalent at the time and keeping abreast of such legal developments. They are similarly responsible for identifying and effectively managing key corruption risks within the company. Hence they set the Tone at the Top – the stance that the commercial organisation takes on corruption and bribery. And, to provide sufficient confidence to various stakeholders, this stance must be along the lines that the business has a zero tolerance for corruption.
Culture of Integrity
This zero tolerance thrives in a culture of integrity. If business in the past was conducted in a way that is not presently acceptable, then promoting such a culture of integrity starts from a deliberate paradigm shift. A conscious effort to overhaul the manner in which business was done in days gone by to a new, ethically transparent way. It means looking at the current codes, workflows, policies and procedures with sufficient intent to re-work existing programs to incorporate elevated internal controls. Establishing an anti-corruption program that addresses critical corruption risks is a vital component.
Practical Implementation
Employees and suppliers, being important internal and external stakeholders, must be educated on this culture of integrity. Communicating, cascading and instilling this message within rank and file comes from the top down who must also demonstrate the willingness to listen to, and investigate, genuine reports of incidents of a corrupt nature. And, where allegations have been proven, Top Management must be seen to take the necessary disciplinary actions against perpetrators.
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RC Compliance Consultancy is a boutique compliance consultancy firm based in Kuala Lumpur, Malaysia specialising in business integrity and anti-corruption compliance programs and frameworks that comply with the adequate procedures of Corporate Liability provision (Section 17A MACC Amendment Act 2018) and in line with ISO 37001:2016 Anti-Bribery Management System.
For a confidential discussion on anti-corruption and anti-bribery compliance, reach out via: ask@rc-compliance.com
