Bond Pearce

It comes as no surprise that research carried out by Ernst & Young has shown that the oil and gas sector will be greatly impacted by the UK's new anti-bribery legislation which is shortly to be implemented, so it is vital that companies fully understand what is and what is not permissible when carrying out business. This is particularly the case when a business operates in overseas markets, in countries which might generally be considered  as high risk commercial environments. 

I would agree with E&Y when they say that oil and gas companies will be more affected, not because they pursue practices that are intentionally corrupt but because companies in this sector work in parts of the world where corrupt practices are culturally engrained into every day business life. Consequently compromising situations are almost a daily event for some companies working in the front line where they may feel sorely tempted to 'do what needs to be done' simply in order to carry on perfectly legitimate business. Managers and senior executives will now need to ensure that their staff and persons associated with their business are given clear guidance on how to conduct business, and how to react when temptation presents itself.  The Serious Fraud Office, the principal prosecuting authority under the Act, has made it quite clear that they expect companies not to falter when instilling measures to ensure full compliance.  

However all is not doom and gloom. No one is suggesting that companies conducting business in high risk areas should simply pack up shop and move out and see business opportunities be snapped up by foreign competitors. It is a case of ensuring now more than ever before that the ground rules are clearly spelt out to business counter-parties and staff are provided with clear guidance on how to conduct themselves when seeking to win or retain business. There needs to be a clear understanding of what can be done, such as reasonable and proportionate hospitality to foster good business relations, offering genuine training courses, and where prescribed in law or regulation, the ability to contribute to legitimate social or cultural programmes. And for that which is outlawed - simply think of the reverse. The days of handing over cash as an inducement to win business are now consigned to history, ultimately to the benefit of every stakeholder, which must be a good thing.