Supply Chain News / Risk & Compliance

Many Logistics Groups at Risk from Bribery Law

August 6, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

Half of the world’s biggest logistics companies are putting themselves and customers at risk of prosecution under new UK bribery laws by failing to publish a complete draft of anti-corruption policies, according to Rose Jacobs of Investors Chronicle.

Research by GoodCorporation, a business ethics consultancy, has found that only two in three big logistics groups have publicly outlined their approach to fighting bribery and half have no statement on illegal “facilitation payments” used to speed deliveries through customs.

It warned that a significant number of logistics companies appear to have insufficient procedures in place to prevent corruption, which puts themselves and their clients at risk. A third have no published anti-corruption policy or statement and more than half make no statement at all regarding facilitation payments.

Guidance from the Ministry of Justice says: “Top level management commitment to bribery prevention is likely to include communication of the organization’s anti-corruption stance.”

The new bribery law makes it easier for prosecutors to bring charges, and demands that businesses be accountable for the activities of all third parties and intermediaries working on their behalf.

Directors of businesses that cannot demonstrate that they have “adequate procedures” to stamp out corruption, in their own organization and throughout their supply chain, may be liable to unlimited fines and up to ten years in jail.

Michael Littlechild of GoodCorporation said; “Logistics is one of the most exposed sectors to corrupt activities, with companies in this field often working in some of the world’s most ethically challenging environments.

“This is also of concern for global businesses, as most of them will use logistics companies for part of their operation. By failing to demonstrate clearly that proper measures are being taken to eradicate corruption, logistics companies are putting themselves and their clients, at risk.”

The impact of this is already apparent. In the United States, every prosecution in 2011 under the US Foreign Corrupt Practices Act was related to the corrupt activities of third parties.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

KC SmartPort Momentum

Kansas City SmartPort Momentum 2013 focused on 3PLs, the issues facing the industry, and the role or logistics in economic development

Podcasts

 

Calculating a true landed cost for global sourcing directly correlates with the profitability of purchased goods. However, few companies can command real-time visibility in to all the costs involved for cross border movements. In this podcast, World Trade 100 and Amber Road highlight how a comprehensive global trade platform that converges both logistics and compliance costs can deliver true landed cost visibility.

 

Speaker: Hung Lee, Senior Product Manager, Amber Road

More Podcasts

World Trade 100 Magazine

april cover wt100 2014

2014 April

Check out the April 2014 edition of World Trade WT100, featuring articles on fueling changes for trucking plus much more!

Table Of Contents Subscribe

Supply Chain Disruptions

Which are the most common causes of disruptions in your supply chain?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members

STAY CONNECTED