Gifts, Hospitality and Bribery policy. Paul Tomlinson, Director of Resources. Nicola Rice, Jill Stubbs, Laura Quirke. Register of amendments

Transcription

1 Name of Policy Authorising group Gifts, Hospitality and Bribery policy CMT Effective date October 2012 Latest Review Date October 2014 Version number 1.0 Policy Author/owner Staff Reference group Paul Tomlinson, Director of Resources Nicola Rice, Jill Stubbs, Laura Quirke Register of amendments Date

2 Gifts, Hospitality and Bribery Policy 1.0 Introduction 1.1 References to the Company in this policy mean Londonwide Local Medical Committees Limited and its subsidiary Londonwide Enterprise Limited. 1.2 The 2010 Bribery Act sets a clear position around the unacceptability of bribery in public and corporate life. It also sets out a framework for organisations to protect themselves from bribery and accusations of bribing others. 1.3 The risk of bribery within the company and the sector that it works within is considered to be low however that does not negate the seriousness with which the company views this issue and therefore wants to ensure that it has effective practices to address this issue. 1.4 Whilst the company recognises the seriousness of bribery as an issue, the development of this policy is a reaction to legislation and audit recommendation. There have been no recorded incidences of bribery within the organsaition. It is important that staff recognise that this policy has been written in this context and is not a response to any incident within the company. 1.5 Business is often driven by effective interpersonal relationships that are underpinned by developed trust. There will be occasions where hospitality is shown or received to build effective relationships. An organisation may also wish to show gratitude or respect to the company or an individual for the way that they have supported the relationship by giving a small gift that is not linked to any (expectation of) different or inappropriate treatment. The giving and receiving of hospitality and gifts is acceptable and this policy will enable staff to differentiate between acceptable gift/hospitality and unacceptable bribes. It will provide tools and processes to help assess the situation if the boundaries appear blurred. 1.6 This policy will cover the following areas: Set out the company s position on bribery Define bribery, gifts and hospitality and differentiate between them Set out a process of due diligence to avoid bribery Set out a risk assessment process to avoid bribery situations Establish a reporting process to manage high risk situations and inappropriate behaviour by colleagues or trading partners. 1.7 This policy applies to all staff, LMC Members, and all or any contractors working on behalf of the company. 2.0 Equality Impact assessment 2.1 The language and intent of the policy have been reviewed carefully to ensure that in supporting the policy principles there is no detriment to any group or individuals for any reason including anyone with a protected characteristic as described in the 2010 Equality Act. The Company welcomes feedback on its policies as it seeks to continuously improve. Please notify the Director of Resources if you have any suggestions on how to improve the inclusivity of this policy or if you believe there are any areas of detriment that can be redressed. 3.0 Core Principles 2

3 Bribery blights lives. Its immediate victims include firms that lose out unfairly. The wider victims are government and society, undermined by a weakened rule of law and damaged social and economic development. At stake is the principle of free and fair competition, which stands diminished by each bribe offered or accepted. Kenneth Clarke, Secretary of State for Justice - the Bribery Act 2010 Guidance. 3.1 The payment or soliciting of bribes is completely unacceptable to the board of directors and senior management of the company. For absolute clarity, there are no circumstances where it is acceptable for an individual supposedly acting for the company to make a payment that could be described as a bribe or to seek a personal bribe. 3.2 The payment or receipt of a bribe or soliciting a bribe will be treated as a disciplinary issue and potentially viewed as gross misconduct which could lead to dismissal. If appropriate, acts of bribery will be reported to the police. 3.3 Giving and receiving gifts and hospitality is acceptable according to the circumstances. Larger gifts or more generous hospitality must be declared and logged to ensure transparency. 3.4 Should there be circumstances where individuals: Believe they are being asked to pay a bribe or are being bribed Are aware of others engaging in bribery Believe others are engaging in bribery Are concerned that gifts or hospitality may be construed as a bribe or may compromise their position subsequently then this must be reported to the Director of Resources or another permanent member of the Company Management Team (CMT). The circumstances will be investigated or the risk assessed accordingly. 4.0 Definitions 4.1 Bribery can be defined as payment that is designed to bring about or reward improper performance of duties that breaches the expectation that a person or organisation will act in good faith. Bribery can be where a payment causes improper performance of duties, or where the person making the payment knows or intends that this will lead to improper performance of duties. 4.2 Improper performance of duties could be defined as circumstances where processes are changed, rules are breached, business principles are compromised, information is inappropriately disclosed or competitors are sabotaged. This list is not exhaustive. 4.3 Bribery can take a number of forms, including: Active Bribery where payments are made to secure unfair advantage Passive Bribery where payments are accepted to secure unfair advantage Facilitative payments where an individual seeks payment for handling a process that is a normal expectation of their role. Such payments could be demanded for handling a transaction or could be for advantage such as speedier processing. 3

4 4.4 Hospitality or gifts are differentiated from bribes as there is no expectation that they will lead to any improper performance of duties, special or preferential treatment or the expectation of reciprocal favours. 4.5 Hospitality may include the following situations: A meal or buffet as part of a business meeting Food or drink as part of a social activity aimed at developing working relationships Invitation to a sports or arts event as an opportunity to network and build interpersonal relationships as part of effective working. 4.6 Gifts may include (but not exclusively) the following situations: A low value gift as thanks for good work, advice or support A gift at significant times to show appreciation of the working relationship e.g. biscuits for the office to share at Christmas, flowers or vouchers to show appreciation or mark life events. 4.7 Bribery may not always involve payment or gift giving, it could involve an exchange of favours where a conflict of interest exists to secure unfair (political) advantage within the business of Londonwide LMCs. This is equally unacceptable. 5.0 Register of gifts and hospitality 5.1 For transparency and to protect individuals from accusation, gifts and hospitality valued above 100 must be declared to the company using the form shown in appendix 1. If individuals are unclear about the value of the gift or hospitality but believe it to be of significance or potentially compromising then it should be declared. 5.2 Gifts and hospitality under 100 do not automatically need to be declared. Examples might include working lunch at an LMC meeting, boxes of chocolates, bottles of wine or spirit. Individuals should declare gifts or hospitality if they are concerned that hidden expectations may be attached to it. 5.3 Larger gifts or hospitality must be declared. If the individual has concerns that there may be hidden expectations attached to it, they should complete a bribery risk assessment (appendix 2) with a member of CMT and discuss the implications of accepting the gift or hospitality. Larger items might include: residential or overseas trips not linked to business activity, tickets for high prestige sports or arts events, cases of wine or spirit or high value vintage bottles, cash or vouchers over Register of interests 6.1 To help identify situations where individuals may be compromised, a register of interests is maintained. This enables individuals to be transparent about external connections and therefore manage any risk around conflicted priorities. 6.2 All LMC members are asked to complete a Register of interest form on election and to renew this each year. 6.3 All Londonwide LMC staff will complete a register of interest declaration each financial year. The form is shown in appendix 3. 7 Provision of hospitality and gifts by Londonwide LMCs & LEL 4

5 7.1 The company regularly provides hospitality as part of normal working e.g. buffet for a meeting held over lunchtime, hot meal at an evening meeting, catering at education events. 7.2 Small gifts to recognise long service or significant life events are also marked with gifts such as flowers or hospitality. Such expenditure and activity if less than 100 should not be viewed as of concern within the terms of this policy. 7.3 If in providing gifts or hospitality for an event, the organiser perceives that there may be some risk of perception of bribery then they must complete a risk assessment with a member of the CMT. This assessment will identify how the risks can be managed or, if the risks are too high, whether it is appropriate to proceed. 8 Reducing the risk: Procurement processes 8.1 To help reduce the risk of bribery, all expenditure/orders over 500 must be approved by an authorised signatory. All payments made by the organisation must be countersigned and approved by two authorised signatories. 8.2 Where expenditure on a contract is going to be over 5,000, a minimum of two quotes must be obtained and CMT will decide which option to choose. 8.3 Contracts over 20,000 (not relating to equipment or BMA premises) will be subject to a managed tendering and procurement process where CMT will be responsible for the final decision. This will reduce the possibility of an individual being able to get involved in bribery through the process. 9 Risk assessment 9.1 The 2010 Bribery Act identifies a number of areas where the risk of bribery is raised. For example, the country you are dealing with or the type of industry you are working in may be more open to bribery. The areas more applicable to Londonwide LMCs include: Transaction risk: certain types of transaction give rise to higher risks, for example, charitable or political contributions, licences and permits, and transactions relating to public procurement Business opportunity risk: such risks might arise in high value projects or with projects involving many contractors or intermediaries; or with projects which are not apparently undertaken at market prices, or which do not have a clear legitimate objective Business partnership risk: certain relationships may involve higher risk, for example, the use of intermediaries in transactions with foreign public officials; consortia or joint venture partners; and relationships with politically exposed persons where the proposed business relationship involves, or is linked to, a prominent public official. For the purposes of Londonwide LMCs and LMC committee business, such a relationship includes the management of elections to LMC committee posts, and the conducting of committee business. 9.2 Where bribery concerns are identified, a risk assessment should be conducted by the person identifying the risk and a member of the CMT using the process shown in appendix 2. 5

6 10 Due diligence 10.1 When working with an organisation where there is raised bribery risk, a due diligence process must be undertaken to mitigate the risks or to satisfy the company that the risk is low enough to proceed Depending on the level and nature of the risk, the due diligence process may include: An online check to see company s internet profile Seeking references from previous associates/customers Seeking assurance regarding business expertise, this may include a qualifications or professional body membership check. Site visit to check the face validity of the organisation and its systems Seeking advice from the company s lawyers Companies House check regarding the directors and financial position of the organisation Financial checks Media check for evidence of past trading profile, particularly noting adverse incidents The due diligence plan for each case should be discussed and agreed with the Director of Resources. The evidence produced will be reviewed by CMT which will determine whether it is appropriate to engage with the provider. 11 Communication 11.1 This policy will be communicated in the following ways: It will be launched at an all staff briefing so that everyone is aware of it. Staff will be informed at briefings about subsequent changes The policy will be available in the policy section on the shared drive for everyone to read. Policy review is part of everyone s induction and it is a part of every staff member s contract to read and comply with the company s employment policies The policy is developed in partnership with staff and has an employee reference group to assist colleagues with questions about its implementation and use It will be made available to LMC members and contractors. 12 Monitoring and Review 12.1 The policy is owned by CMT and will be rated within the policy control schedule that is reviewed at each meeting. The usual review cycle for a policy is every two years however should circumstances, legislation or practicalities change then it will be reviewed as necessary and changes tracked on the control sheet at the front of the policy Gifts and hospitality will be logged and reported to CMT. Bribery risk assessments will also be logged and reviewed by CMT to assess trends and identify changes required to procedure Bribery risk will remain on the CMT risk register and the level of risk will be kept under regular review and amended as necessary. 6

7 13 Further information and references The Bribery Act 2010 Guidance Ministry of Justice The Bribery Act Quick start guide - Ministry of Justice 7

8 Appendix 1: Declaration of Gifts and Hospitality Name of individual What has been offered? What was the reason given for the gift or hospitality? Who will benefit from it? Has the hospitality or gift been accepted? Can it be returned or subsequently declined? Approximate value Declaration: In relation to the gift or hospitality described above: Yes No Was it solicited? Were any undertakings given by you in relation to it? Were any undertakings requested in relation to it? Did it make you feel obligated to make a reciprocal gesture now or in the future? Have you or have you been asked to perform a service or task for the giver which is not part of your usual core work, and/or which might be considered improper by a third party? If you have answered yes to any of the above questions then a risk assessment must be completed. Signature Date Please pass completed copies of this form to the Director of Resources 8

9 Appendix 2: Bribery Risk assessment (active and passive) Name of person reporting and assessing the risk Name of co-assessor (member of CMT) Details of the contract or situation Possible risks Transaction risk What type of contract is being negotiated, how will payment be made? Risks identified (give details) Actions to be taken Business opportunity risk What is the size of the contract, are contractors or intermediaries involved, have market prices been compared, how clear are the business objectives? Business partnership risk Who is the agreement with, is there a consortium involved, what connections do other consortium members have and what allegiances or financial or political exposure do they have? Are there any conflicts of interest? Other risks 9

10 Overall agreed assessment of risk: Evaluation of evidence Risk Rating Consequence = Business and media disaster, company future jeopardised = Major financial, media & legal business interruption =Significant business & financial impact, adverse media = Some business impact requiring management time = Manageable business impact Likelihood 5= Almost certain to occur, greater than 90% probability Consequence 4= Strong probability % chance Likelihood 3= Reasonable probability, 50/50 chance 2= Small liklihood, 20-30% chance Total Risk score CxL 1= Very unlikely, less than 10% probability Level of risk Low Action Risks acceptable, proceed with transaction Tick Raised High Seek further information (due diligence) about the partner, register concerns with CMT and seek further guidance Discontinue work with partner, notify CMT and communicate risk to colleagues who might potentially have contact with the organisation or individual Assessors Name 1 2 Signature Date Please pass the completed form to the Director of Resources 10

11 Appendix 3: Londonwide LMC staff declaration of interests The purpose of the Register is for employees of Londonwide LMCs and Londonwide Enterprise Limited to provide information on any pecuniary interest, other interest (either direct or indirect) or other material benefit which he or she receives which might reasonably be thought by others to influence his or her actions, or to compromise their position. Name Directorships both paid and unpaid (Executive & Non- Executive) of public or private companies CCG Chair or membership Other remunerated work: Shareholdings in related companies or suppliers: Family interests in related organisations: Miscellaneous and unremunerated interests which may be considered to influence your work as company employee I confirm that I have declared any interests I may have in accordance with Londonwide LMCs Limited s policy on gifts, hospitality and bribery. I will declare any interest in any matter under discussion or procurement decision encountered in the course of my work and withdraw from that discussion or meeting if I feel unable to avoid a conflict of interest. If there are any changes in these interests, I will advise The Director of Resources, in writing, as soon as possible. Employee signature Date 11