KEEPING BRIBERY AT BAY
Combined with an understanding of the FCPA anti-bribery
provisions, the BPI can help organizations stamp out the
risk of illegal payments and ensure business is conducted
in accordance with U.S. legal requirements.
Business-sector Ratings” on page 63).
The survey questions used to develop
this listing focused on business transactions related to government contracts,
public tenders, government licenses, and
regulations enforcement. Sector ratings
are based on the same 0-to- 10 scale as
the BPI country ratings.
The survey identified public works
contracts and construction, the arms and
defense industry, and the oil and gas
industry as the three business sectors
most associated with bribery. By contrast, agriculture, light manufacturing,
and fishery had the lowest perceived
incidence of bribes, each of which scored
an index rating of 5. 9. Auditors working
at diversified corporations may want
to consider the varying levels of perceived bribery across business sectors
and plan and execute their compliance
MITIGATING THE RISK
The BPI can be used as a first step in
assessing the risk of bribery in the general operating environment of a firm’s
international activities and foreign subsidiaries. However, the index is not a
substitute for an established, effective
system of internal controls, as required
by the FCPA, or periodic evaluations and
examinations by the internal auditors
to ensure FCPA compliance. Combined
with an understanding of the FCPA
anti-bribery provisions, the BPI can help
organizations stamp out the risk of
illegal payments and ensure business
is conducted in accordance with U.S.
To comment on this article, e-mail the
authors at firstname.lastname@example.org.
Anti-bribery Web Resources
U.S. Foreign Corrupt Practices
Organisation for Economic
Co-operation and Development
U.S. Sentencing Commission
U.S. Department of State:
United Nations (UN)
Provides the actual statute and amendments, as well relevant information and
Web sites, including a layperson’s guide
to the FCPA.
The complete OECD Convention on
Combating Bribery of Foreign Public
Officials in International Business
Transactions can be found, as well as
updates on implementation.
Provides information on Transparency
International, the 2002 and 1999 Bribe
Payers Indexes, the Global Corruption
Report 2003, and the 2003 Corruption
Contains the Federal Sentencing
Guidelines related to bribery.
Provides a listing of organizations
covered under the International
Organizations Immunities Act. Under the
1998 FCPA amendment, bribery is unlawful in these countries.
Provides full text of the UN General
Assembly’s “Declaration Against
Corruption and Bribery in International
Commercial Transactions,” which calls for
criminalizing foreign bribery.
FEBRUARY 2004 INTERNAL AUDITOR