Be afraid of this law. Be very afraid

It’s as simple as ABC, writes ROGER STEARE – Anti-Bribery and Corruption. And he should know. He’s helping the Serious Fraud Office with their inquiries into the definition of good, ethical banking leadership.

The Bribery Act 2010 was passed just before the General Election and comes into force next April. But most people in business are blissfully unaware of the implications of this new legislation. The same is true of most bankers, unless of course, you’re the General Counsel.

But be afraid. Be very afraid. Because if any employee, or any employee of any of your sub-contractors or agents gives or accepts a bribe, or bribes a foreign government official then, on conviction, there’s an unlimited fine for the company and up to ten years’ hospitality at Her Majesty’s pleasure for the perpetrators.

But there’s more. If the directors and senior executives fail to take “adequate procedures” to mitigate the risk of bribery and corruption, then they, too, could be prosecuted, convicted, fined and jailed.

So what’s this got to do with me, your friendly Corporate Philosopher columnist? Well, following hard on the heels of Hector Sants’ recent speech on the need for ethical leadership and culture in financial services, my new friends at the Serious Fraud Office are also convinced that hard evidence of ethical leadership and culture will be an essential component of these “adequate procedures”. And we’re friends because I’m now working with the SFO on defining what good leadership and ethics looks like.

So what does this mean? And why am I suggesting it’s as simple as ABC?

Firstly, what it means is that the leadership and culture of your bank is one not dominated by rules, processes and boxes to tick, but is one where grown-ups take personal responsibility for their actions. You know, the sort of stuff we take for granted in our personal lives. Thinking about our moral values and being honest, fair and caring. But also having the courage not to do something stupid just to reach this month’s business target, or having the courage to challenge a work colleague who might be thinking of doing something stupid themselves.

So think about yourself and your own firm. Do you measure up to this standard of common decency? If you do, then what about your colleagues or those running the business? If you have any doubts, now’s the time to stand up and be counted. And if no one wants to listen, then go find a job with another firm which deserves you. Because they’re out there.

These are the banks which not only treat their customers fairly, they treat everyone fairly. They’re the firms who don’t sacrifice their integrity and reputation for a few dollars more. They’re the firms led by people who are open, accessible and interested in you. They’re the firms whose leaders create an open culture, where grown-ups speak up for what is right without fear of recrimination. Where people challenge or support each other to be decent human beings.

In short, to be human beings first and business people second. It’s as simple as ABC.

Roger Steare is a Corporate Philosopher and Professor of Organisational Ethics at Cass Business School, London. He can be contacted at: roger.steare@ethicability.org
You can try his integrity test at www.ethicability.org
Watch Roger Steare's new video on YouTube: www.youtube.com/watch?v= unufsY1HZh8   

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