An Anti-Bribery and Corruption Policy or a Conflict of Interest (COI) Policy is not a legal requirement for most organisations. However, it is a crucial document for various reasons. A stated policy ensures compliance with legislation and international regulations and can help avoid legal consequences and penalties.
Certain organisations including charities are obliged to have a COI policy in order to ensure that the risk of bribery or corruption does not arise or can be dealt with swiftly if it does arise.
For other organisations, the policy acts as risk mitigation. It ensures that all people within the organisation are aware of the required standards, and that they act within the values of the business. A crossing of lines in respect of gifts to decision-makers or contracts with related parties can cause financial loss to the business, legal actions, regulatory investigations, reputational risk, and operational disruption.
As well as establishing clear guidance for internal auditing and monitoring, the policy promotes operational integrity and an ethical culture. It demonstrates corporate social responsibility by contributing to the broader struggle against corruption and promoting social justice. A greater use of such policies has a financial benefit by preventing the hidden costs of corruption such as poor use of resources and inflated contract prices.
Having a strong policy aligns with best practice in corporate governance globally and facilitates international trade and partnership. The policy smooths the way to access to markets that require strict adherence to anti-bribery and corruption laws.
Having a COI policy in place demonstrates a commitment to ethical business practices and good corporate governance. It builds trust in the brand and protects business reputation as well as providing confidence to potential investors, suppliers, partners and clients. Employee morale can be enhanced by fostering a fair and transparent workplace.
The above is intended for information purposes only. It is not legal advice. If you would like to discuss developing a COI policy for your business or any aspect of compliance, please contact Fitzsimons Redmond LLP on 01-6763257 or by email at law@fitzsimonsredmond.ie.
By Lisa Quinn O’Flaherty
Partner at Fitzsimons Redmond LLP
