ANTI-BRIBERY, GIFTS & HOSPITALITY POLICY

Definitions

• University includes all University of Derby Group companies and operations.
• Bribery can be defined as the offering, giving, requesting, demanding, receiving or soliciting of an advantage (or any item of value: money, goods, favours or other forms of recompense) that could be deemed to influence the actions of an official or other person in charge of a public or legal duty.
• Corruption can be defined as dishonest or fraudulent conduct, misuse of public office or power for private gain. This may or may not involve bribery.

1. Introduction and Scope 

The University is committed to the highest standards of integrity, probity and ethics in all its dealings - wherever they may take place and in whatever context.

Bribery is both illegal and unethical, and brings with it the potential for criminal liability and severe penalties - at both University and individual level. The legislation is extensive and, crucially, the University’s anti-bribery responsibilities do not end at the office door or campus gate. Those responsibilities potentially extend to any associated person, representative, agent, subsidiary, partnership or body engaged on University business, including those within and outside of the UK. University of Derby Approach The University has a zero tolerance approach to bribery and serious action will be taken against anyone found to be involved in bribery, up to and including dismissal under the University’s disciplinary processes.

For associated persons, breach of this policy may result in contractual, legal and/or other sanction(s).

Scope

This policy applies to all University staff and students. It also applies to agency and self- employed workers working for the University, and all other persons associated with and acting for the University, whether directly or indirectly.

This definition includes external members of University Committees, representatives, agents, subsidiaries, individuals appointed as directors of any company, consultants, contractors and partners.

To the fullest extent permissible by law, this policy shall apply in all jurisdictions in which the University operates. Bribery risks It should be stressed that, in common with other Higher Education Institutions (HEIs), the University faces a range of bribery risks throughout its activities, operations and geographies. These risks include, but are not limited to, bribery in relation to admissions, examinations, awards, procurement, construction and field trips. 

2. The Bribery Act 2010

The Act came into force in July 2011. It is a cleverly worded and comprehensive piece of legislation which has extensive scope and geographic reach. What is a bribe? Bribes can take many forms but typically they involve corrupt intent. A bribe could be

• The direct or indirect promise, offering or authorisation of anything of value
• The offer or receipt of money, kickback, loan fee, reward or gift
• The giving of aid, donations or voting designed to exert improper influence Bribes could be money, gifts, hospitality, entertainment, expenses, reciprocal favours, political or charitable donations, or any other direct or indirect consideration.

According to the Act, bribery is where someone requires, gives or promises financial (or other) advantage with the intention of inducing or rewarding improper performance. Improper performance is a key concept and generally means where an individual does not act in good faith, impartially and/or properly. The test of what is proper is based upon what a person in the UK would reasonably expect.

A typical example of improper performance could involve work being continually directed to a particular construction contractor at the expense of other qualified contractors as a result of bribery - work that has (invariably) been overpriced to allow for the bribery payments required. Under the Act, there are general forms of bribery where individuals are personally criminally liable:

• Offering, promising or giving of a bribe (either directly or indirectly) with the intent to induce a person to improperly perform a relevant function - known as active bribery.
• Requesting, agreeing to receive or accepting a bribe (either directly or indirectly) such that a relevant function is, or will be, improperly performed - known as passive bribery. There are two other related offences:
• Bribing a foreign public official in order to obtain or retain business or an advantage to the conduct of business.
• Corporate liability where a body, such as a University, fails to prevent bribery. It is important to note that (so-called) ‘facilitation payments’ - payments typically to government officials to facilitate special treatment, such as prioritisation in an approval process - are also bribes.

The University does not offer or make, and shall not demand or accept, facilitation payments of any kind. Advice should be sought if required in order to distinguish between properly payable fees and disguised requests for facilitation payments. Overseas reach The Bribery Act has extensive global reach and holds UK organisations liable for failing to implement adequate procedures sufficient to prevent such acts by those working for the University or on its behalf, no matter where in the world the act takes place. In addition, current US legislation (Foreign Corrupt Practices Act or FCPA) offers similar prohibitions and potential penalties, and is enforced robustly by the US authorities, supported by extensive inter-agency co-operation on an international basis.

3. University of Derby Policy

The University values its reputation for ethical behaviour and recognises that any involvement in bribery is illegal and will reflect adversely on its hard-earned image and reputation.

The University prohibits the offering, giving, soliciting or the acceptance of any bribe in whatever form to, or from, any person or company (public or private) by anyone associated with the University. The University expects any person or company (public or private) associated with the University to act with integrity and without any actions that may be considered an offence within the meaning of the Bribery Act 2010.

The University requires any potential breaches of this policy and bribery offers to be reported under the University’s reporting processes (see below). The prevention, detection and reporting of bribery is the responsibility of everyone associated with the University.

4. Prevention of Bribery and Corruption

The University takes the following steps to assist in the prevention of Bribery and Corruption Senior Management Commitment The Governing Council and Vice-Chancellor’s Executive are committed to carry out all academic and business functions fairly honestly and openly. They will ensure processes and practices are followed in a robust manner to ensure bribery and corruption are dealt with in line with the Bribery Act 2010.

Risk Management

Effective risk management is both central to this policy and an essential part of the University’s overall governance process. It facilitates identification of the specific risk areas where the University could face bribery and corruption risks and allows mitigating plans and actions and protections to be put in place. 

Risk Assessment

The University Senior Managers carry responsibility for risk assessment alongside appointed Risk Managers in Colleges and Departments who will carry out risk assessment in each area of activity, considering its activities, both internal and external, the countries where it does business, the sector in which it operates, the types of transactions it undertakes, the business partners it chooses.

Bribery risk assessment should be considered as part of overall risk assessment, with a higher profile in areas of high expenditures and contract letting. Areas of High Risk University high risk areas will change over time: continuing enhanced diligence areas include:

• Agents and intermediaries, particularly those who operate in jurisdictions where bribery is prevalent or endemic
• Joint Ventures and Consultancies: where the University could be held liable for bribery or corruption committed by third party with whom the University is associated
• Contracts particularly construction contracts where values are high
• All aspects or procurement of services and goods

Due Diligence

The University will conduct pre contract due diligence on all third parties who provide services on its behalf. This will particularly apply to Procurement and Financial processes with regard to selecting suppliers. Contract conditions will be updated to reflect Bribery Act considerations for suppliers who will be asked to declare support for our Anti-Bribery Policy.

Communication and Training

The policy will be published on the University website. All employees connected with buying or contracting will receive direction and training both from Procurement on their specific high value transactions and also from Finance generally: managers will be trained to assess and identify areas and employees at higher risk.

Monitor and Review

The University will review it policies and practices on a continuing basis to ensure risk assessment is perpetual with each transaction type considered separately. The University will be particularly diligent around new activity.  Formal declarations by the members of the Extended Vice-Chancellor’s Executive will be requested annually

5. Gifts and Hospitality

Gifts and Hospitality (and Entertainment) include the receipt or offer of gifts, meals, tokens of appreciation, invitations and tickets to events and functions in matters connected with our business. These are acceptable provided that they fall within reasonable bounds of value and occurrence, subject to the further provisos listed and described below

Gifts and Hospitality

• cannot be accepted from third parties taking part in a procurement process and seeking to do business with the University
• cannot be accepted if it involves an offer for something in return
• cannot be accepted if it involves cash or equivalent
• cannot be accepted if it involves sexual or other inappropriate activity

Employees need to consider when offered a Gift or a Hospitality:

• what is the intent in this offer?
• How would I justify it or explain it?
• Am I comfortable accepting it?
• How does it affect my independence?

Clearly, gifts and hospitality can amount to real or perceived bribery and caution should always be exercised. It is down to the employee to make this judgement but if there is any doubt about the propriety of hospitality, it should not be accepted or offered.

Acceptance of Gifts and Hospitality:

Employees accepting G&H should declare the receipt to the Procurement Department who will review (with payroll) for any taxable ‘benefit in kind’. Staff can find a copy of the Gifts and Hospitality Notification Form on the Procurement pages of the Intranet.

Staff must also notify their line manager.

The Clerk to the Governing Council holds the register for the (Extended) Executive and the Governing Council.

6. If you see Bribery and Corruption in the Workplace

All employees of the university have a responsibility to help detect, prevent and report instances of bribery and suspected bribery, this extends to all suspicious activity or wrongdoing. The University is committed to a safe, reliable and confidential way of reporting suspicious activity. If you are concerned, know or suspect that bribery is taking place, see your line manager in the first instance, or if this is not possible or advisable, contact the Financial Controller or Procurement.

7. Anti-Bribery Whistleblowing Policy

The Whistleblowing Policy is designed to allow staff, student and all members of the University to raise at high level concerns which they believe in good faith provides evidence of malpractice or impropriety. Individuals discovering or suspecting malpractice, impropriety or wrongdoing are able to disclose the information without fear of reprisal. A disclosure in good faith which is subsequently not confirmed, will not lead to action against the person making the disclosure.

Appendix 1

Examples of Risk Areas for the University of Derby

The following are examples of a range of UK and overseas activities which, depending on the circumstances, could lead to breaches of the Act by the employees or the University.

• Procurement - A company is desperate to win a major contract with the University and offers to make a car available on a long term loan to a staff member who can influence the award of the contract.
• Alumni / charitable donations - A wealthy alumnus arranges for his company to make a substantial donation to the University to ensure that his child is awarded a place.
• Overseas recruitment - An agency responsible for recruiting students pays a small bribe to an education department official to be allowed access to students in a highly rated school.
• Overseas development -The University seeks to expand into the Far East and the Director exchanges valuable gifts with local leaders on the basis that this is expected practice in the country.
• Field trip / research - A professor on a field trip with students pays a small sum to customs officials to avoid excessive delay in the import of field equipment.
• Research - A professor conducting research in a specialist area is asked to give an overly positive peer review in exchange for a similar review of their own work.
• Student or Student Parent offering Bribe – Bribe to employee to confer advantage.
• Use of third-party representatives It is important to identify risks when a third-party conducts activities on the University’s behalf.

Where risk regarding a third-party arrangement has been identified, employees must:

• evaluate the background, experience and reputation of the third-party;
• understand the services to be provided, and methods of compensation and payment;
• evaluate the rationale for engaging the third-party;
• take reasonable steps to monitor the transactions of third-parties appropriately; and
• ensure there is a written agreement in place which acknowledges the third-party understands and complies with this policy.

Appendix 2

The basic Dos and Don’ts that all University employees must adhere to.

Don'ts

• You must never pay, offer, request or accept a bribe in any circumstances.
• You must never provide business gifts, hospitality or entertainment to a foreign government official regardless of value without prior authorisation from the Deputy Chief Executive & Finance Director
• You must never make a facilitation payment.
• You may never give or accept a gift of cash, regardless of the value.
• You must never give or accept gifts or entertainment from or to a third party during a tender process or contract negotiations with that third party regardless of value,
• You should consider: Is this excessive; Is it hospitality or persuasion; A gift or a bribe; or Am I trying to influence someone to do something improperly or am I being influenced. If you are struggling to justify it, it is probably not okay.
• You may not attempt to split a gift in order to reduce its face value (e.g. a case of wine) in order to bring the value within the “nominal” exception.
• You must not repeatedly give or accept gifts to or from the same third party.
• Gifts offered to your relatives or friends by a third party must always be refused. Similarly, you should never offer a gift to the friends or relatives of any third party.
• You must not make a payment to a third party if you know or suspect that the person may use or offer all or a portion of the payment directly or indirectly as a bribe.
• You must not proceed if a third party that the University seeks to retain will not agree to terms requiring compliance with anti-corruption laws.
• If, upon checking references, you find that a third party has an unsavoury reputation or is not well known in the industry, you should not use that third party.
• You should not use a third party recommended by a foreign government official without doing thorough due diligence checks.
• You should not pay compensation or commission to a third party if it is unreasonably high compared to the market rate without a valid reason. 
• You must never seek to hide, conceal or mischaracterise a payment made to or by the University.
•  You must not make any political or charitable donations on behalf of the University without the prior approval of the Deputy Chief Executive & Finance Director

Do's:

• Do raise concerns with either the Financial Controller or the Clerk to the Governing Council if you are offered a bribe or if you have concerns that an employee is paying or accepting bribes.
• Do give or receive gifts and entertainment if and only if you can satisfy yourself that the purpose or the intention of the gift or entertainment is the legitimate promotion of business relations, networking or fact finding and not intended to influence a tender process.
• You must ensure that all payments, gifts and offers, made or received by the University, and offers of hospitality are accurately reported on the required report form and sent to the Head of Procurement or Nominee immediately,
• You must ensure that all financial transactions are authorised by appropriate management in accordance with internal control procedures.
• It is your responsibility to ensure that third parties engaged on behalf of the University are legitimate service providers. Before engaging any such party you are required to undertake appropriate due diligence checks to include a corruption risk assessment of factors including the country in which the business is to be conducted, the third party’s potential business partners and the nature of the proposed project or transaction.
• You should keep a record of the due diligence checks you have carried out on third parties for at least 6 years.
• You should notify the University’s Procurement department if a third party requests that compensation or commission be paid to an unknown party; be split among multiple accounts, be made to an account in a country other than where the third party is located or business is to be performed.

If you have any queries about this policy, please email procurement@derby.ac.uk 

Last reviewed: 30/10/2020

Policy Owner: Finance - Procurement