Memorandum submitted by DMA and SBAC (BB
45)
RESPONSES TO
SUPPLEMENTARY QUESTIONS
TO THE
DMA AND SBAC
1. You stated that there would be a need for
guidance for companies on what constitutes "negligence"
and "adequate procedures" under the draft Bill (Qq 248-251).
Who should prepare this; what principles should it enshrine; and
what status should it hold? Please could you also supply any draft
guidance you have already prepared.
DMA and SBAC remain concerned at the uncertainty
for businesses that would be caused by passage of the Bill into
law without clear guidance as to what procedures are regarded
as "adequate" to prevent bribery. DMA and SBAC support
the call from the CBI and other representative organisations for
statutory guidance to be issued at the same time the Bill becomes
law and would like to work with the relevant authorities in shaping
that guidance to meet business needs.
DMA and SBAC believe that the statutory guidance
should take account of existing guidance that has been issued
where this has achieved a widespread acceptance in industry and
is consistent with the Bill. The UK aerospace and defence industry
has been involved in the preparation of the Common Industry Standards
(CIS) for European Aerospace and Defence issued by the Aerospace
and Defence Industries Association of Europe (ASD). DMA and SBAC
have together issued the guidance booklet "Tools to Grow
Your Business in a Changing Ethical Environment" which is
designed to help companies implement the CIS. Copies of both documents
have been provided to the Committee. DMA and SBAC have led outreach
activity to get these documents out to as wide a spread of industry
as possible via the Business Ethics Forum which we organize and
ad hoc events like the conference we held last year to launch
the guidance booklet, which was addressed by John Hutton, then
the Government's anti-corruption champion.
DMA and SBAC (the two organisations are due
to merge on 1 October 2009) are committed to providing guidance
to their members and to the industrial sectors they represent
(civil aeronautics, defence, security and space) more generally
on combating bribery. To this end they are planning to update
the guidance booklet mentioned above and issue a second edition
in the autumn of 2009. DMA and SBAC are in touch with officials
of DBIS/MoJ, MoD and UKTI and intend to take their comments into
account in the updating. They would welcome further contact with
the relevant authorities on the preparation of guidance in connection
with the Bill and would be happy to pilot the guidance with their
members if this would help.
DMA and SBAC has also agreed to take part in
an international effort to achieve voluntary principles for combating
bribery and corruption in the aerospace and defence sectors that
can be applied globally. Discussions are taking place between
ASD and US industry which it is hoped will lead to agreement on
the first elements of a set of principles by the end of 2009.
DMA and SBAC will consult with the relevant UK authorities on
the application of these principles.
2. Your raised concerns about the workability
of the "improper conduct" model (Q 265). What model
would you replace it with in the draft legislation? Can guidance
be used to make it workable?
DMA and SBAC, along with other witnesses, wishes
to avoid criminalization of activity that would be considered
legitimate promotional activity by a business or of unintended
breaches of guidelines. We are concerned to see the elimination
of deliberate attempts to distort competition. To this end, the
CBI has proposed a number of changes to the Bill which DMA and
SBAC support.
3. Are there any specific changes that should
be made to the draft Bill (besides any changes that you raised
in oral evidence)?
As mentioned in our oral evidence we have been
consulted by the CBI on their evidence to the Joint Committee
and DMA and SBAC support the changes they have proposed.
4. Is there any further information that you
wish to supply in connection with your appearance on 2 June?
DMA and SBAC would like to re-affirm their support,
expressed publicly on a number of occasions, for the early passage
of a Bill to modernize and consolidate the UK anti-bribery laws.
We believe that to be strongly in the interest of our members
because of the importance of reputational issues in international
business. At the same time it is important that the Bill is easy
to explain to companies and that it reinforces measures that can
be implemented by organisations of all sizes, including SMEs.
June 2009
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