Supply Chain News / Risk & Compliance

Many Logistics Groups at Risk from Bribery Law

August 6, 2012
/ Print / Reprints /
/ 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.



Image Galleries

Five Wearable Manufacturing Technologies of the Future

Video applications, Employee Monitoring, Field service, Plant monitoring, Improving employee safety.

For more manufacturing insights, visit



Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.


Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions


More Podcasts

World Trade 100 Magazine

wt100 cover december 2014

2014 December

Check out the December 2014 edition of World Trade WT100, featuring our cover story on Air Cargo, The Alliance Awards, plus much more!

Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive


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