
Corruption
The New Corporate Challenge
By: Nick Kochan, Robin Goodyear
Hardcover | 20 September 2011 | Edition Number 1
At a Glance
318 Pages
23.39 x 15.6 x 1.91
Hardcover
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Now, for the first time, corporate strategy and responsibility have been analysed in the context of the new law, as well as that of previous statutes and the law of other countries. This book provides a clear and comprehensive introduction to the new legal and political landscape and examines future
issues in compliance and enforcement.
Corruption: The New Corporate Challenge surveys the roots of corruption, outlines worldwide efforts to combat the problem, and explores enforcement and policy choices for businesses faced with a new international environment that is ever more hostile to corruption
Numerous case studies and practical compliance tips provide businesses with the knowledge needed to operate in high-risk industrial sectors and geographical regions. The authors have conducted extensive interviews with senior figures in law enforcement, academics and lawyers to explore likely developments in the law, and predict how it might be enforced.
This book is essential reading not only for businesses that seek advice on tailoring compliance regimes but also for those wanting a deeper context to the global crackdown by governments and the courts on corruption. This is a subject that no corporation can avoid.
The strongest response to the new challenge is for a company to re-evaluate its ethical standards and to impress those standards upon its employees and associates. Failure to do so could be very costly indeed.
Industry Reviews
'This is a well-written deeply thought out book. The authors display a great familiarity with the subject and with the issues and have written an informative and broad-based description of large scale corruption in modern commerce and the efforts to combat it.' John W. Moscow, Partner, Baker Hostetler
'The Bribery Act 2010 will revolutionise the law of England and Wales in relation to bribery and corruption. It will set new standards for businesses operating both in the UK and overseas and pose serious challenges which must be faced or risk a criminal prosecution. This book is a comprehensive guide through the new legislation, putting it in context and giving practical advice to people in business and those that advise them. The key to avoiding problems is to have in place 'adequate procedures'; this book contains all that corporates need to know to meet the new requirements and to deal with law enforcement if the worst happens. This is the first book of its kind and should be the first port of call for all corporates large and small and wherever they conduct business.' Rosalind Wright, Director, Serious Fraud Office, 1997 2003
'Anyone concerned about the actualities of risk, whether in terms of exposure to the harm that bribery causes or perhaps more significantly in terms of management, to the legal, regulatory and reputational risks that arise as a result of non-compliance, will find this work of real and practical assistance. The authors present a dynamic discussion of corruption viewed from several perspectives, including that of the corporate world and those engaged in enforcement. The issues are complex and often defy the simple solutions proffered by more simplistic commentators. This work not only informs but provides much needed guidance and a good bit of practical advice.' Professor Barry Rider, Counsel, BryanCave
'Coming on the heels of the enactment of the UK Bribery Act, Nick Kochan and Robin Goodyear have provided a timely and needed contribution to the growing field of corruption studies. This treatise is an essential resource for anyone seeking to understand
not only how to comply with the UK Bribery Act, the FCPA, or other anticorruption laws, but also why governments have turned anticorruption enforcement from an enforcement backwater into the biggest risk-management concern of any multinational
concern.' Gregory Husisian, Counsel, Foley & Lardner LLP
| List of figures and table | p. xi |
| Preface: a time to act on corruption | p. xiii |
| Acknowledgments | p. xviii |
| Foreword from Richard Alderman, Director, UK Serious Fraud Office | p. xviii |
| Introduction: Corruption and bribery: the global context | p. 1 |
| Civil society's campaign against corruption | p. 2 |
| Recognition by government: domestic responses with international implications | p. 6 |
| Transnational initiatives | p. 7 |
| Business attitudes to bribery | p. 11 |
| The Prisoner's Dilemma: If we don't pay bribes our competitors will | p. 13 |
| Cultural attitudes to bribery: it's just how things are done | p. 14 |
| A bad reputation | p. 15 |
| Threats | p. 17 |
| The threats: Economic, social, and political effects of corruption and bribery | p. 19 |
| The economic effects of corruption: bribery and business | p. 20 |
| The political effects of bribery and corruption | p. 21 |
| The impact of bribery on society | p. 23 |
| Law | p. 27 |
| The global legal context | p. 29 |
| The Foreign Corrupt Practices Act: the United States leads the way | p. 29 |
| Examples of FCPA enforcement | p. 41 |
| Case study: Bribery and the CIA defense - James Giffen | p. 47 |
| Case study: The longest prison sentence for bribery: it's better to come clean - the Jumet case | p. 52 |
| British bribery legislation: How the UK Bribery Act came about | p. 55 |
| The Redcliffe-Maud Committee | p. 58 |
| The Salmon Commission | p. 58 |
| The Nolan Report 1995 | p. 59 |
| The Law Commission Report 1998 | p. 61 |
| The OECD Convention | p. 62 |
| The Draft Corruption Bill 2003 | p. 63 |
| Joint Committee on the Draft Corruption Bil | p. 63 |
| The Bribery Consultation Paper 2005 | p. 64 |
| The Transparency International Corruption Bill 2006 | p. 64 |
| Law Commission Consultation 2007 | p. 64 |
| The OECD Working Croup Repor | p. 65 |
| The Final Law Commission Report and Draft Bribery Bill | p. 65 |
| The Joint Committee on the Draft Bribery Bill | p. 66 |
| Passage of the bill | p. 67 |
| Case study: BAE- the catalyst for the Bribery Act? | p. 67 |
| The UK Bribery Act - Britain's new legal landscape | p. 74 |
| Active bribery | p. 75 |
| Receipt of bribes | p. 75 |
| Bribery of a foreign public official | p. 76 |
| The corporate offense of failing to prevent bribery | p. 77 |
| Case study: Lord Goldsmith on the significance of the UK Bribery Act and the Guidance for company managers | p. 81 |
| Case study: corporate hospitality, the civil law of bribery, address commissions, and facilitation payments - the Fiona litigation | p. 84 |
| Corporate response | p. 89 |
| The geographic factor | p. 91 |
| Corporate exposure: the geographical facto | p. 95 |
| Weak governance zones | p. 96 |
| Case studies for regional corruption | p. 97 |
| Indonesia and construction | p. 97 |
| Iraq and reconstruction | p. 101 |
| Angola - the oil and gas secto | p. 103 |
| Bangladesh and aid | p. 109 |
| The Gulf States and local agents | p. 113 |
| Shell and the US Foreign Corrupt Practices Act (FCPA) in Nigeria | p. 115 |
| British bribery legislation: How the UK Bribery Act came about | p. 55 |
| The Redcliffe-Maud Committee | p. 58 |
| The Salmon Commission | p. 58 |
| The Nolan Report 1995 | p. 59 |
| The Law Commission Report 1998 | p. 61 |
| The OECD Convention | p. 62 |
| The Draft Corruption Bill 2003 | p. 63 |
| Joint Committee on the Draft Corruption Bil | p. 63 |
| The Bribery Consultation Paper 2005 | p. 64 |
| The Transparency International Corruption Bill 2006 | p. 64 |
| Law Commission Consultation 2007 | p. 64 |
| The OECD Working Croup Repor | p. 65 |
| The Final Law Commission Report and Draft Bribery Bill | p. 65 |
| The Joint Committee on the Draft Bribery Bill | p. 66 |
| Passage of the bill | p. 67 |
| Case study: BAE- the catalyst for the Bribery Act? | p. 67 |
| The UK Bribery Act - Britain's new legal landscape | p. 74 |
| Active bribery | p. 75 |
| Receipt of bribes | p. 75 |
| Bribery of a foreign public official | p. 76 |
| The corporate offense of failing to prevent bribery | p. 77 |
| Case study: Lord Goldsmith on the significance of the UK Bribery Act and the Guidance for company managers | p. 81 |
| Case study: corporate hospitality, the civil law of bribery, address commissions, and facilitation payments - the Fiona litigation | p. 84 |
| Corporate response | p. 89 |
| The geographic factor | p. 91 |
| Corporate exposure: the geographical facto | p. 95 |
| Weak governance zones | p. 96 |
| Case studies for regional corruption | p. 97 |
| Indonesia and construction | p. 97 |
| Iraq and reconstruction | p. 101 |
| Angola - the oil and gas secto | p. 103 |
| Bangladesh and aid | p. 109 |
| The Gulf States and local agents | p. 113 |
| Shell and the US Foreign Corrupt Practices Act (FCPA) in Nigeria | p. 115 |
| The sectoral factor | p. 122 |
| Telecoms | p. 123 |
| Food | p. 124 |
| Construction | p. 124 |
| Healthcare | p. 127 |
| Sport | p. 128 |
| Defense | p. 129 |
| Extractive industries | p. 130 |
| Subsector to watch: rare earth elements | p. 131 |
| Third party risk and corporate exposure: How can the company get involved, and why? | p. 134 |
| Supply chains | p. 134 |
| Supply chains in a war zone | p. 136 |
| Intermediaries | p. 137 |
| Case study: BAE and Tanzania | p. 138 |
| Corporate hospitality | p. 139 |
| Facilitation payments | p. 144 |
| Constraints on the FCPA exemption | p. 146 |
| Spotting, stopping, and combating corporate corruption | p. 152 |
| Assessingrisk | p. 152 |
| Common elements | p. 155 |
| Code of conduct | p. 156 |
| Training | p. 158 |
| Creating an ethical culture | p. 159 |
| Anti-corruption and anti-bribery rules | p. 162 |
| Due diligence | p. 164 |
| Internal controls | p. 167 |
| Whistleblowing policies and communication | p. 168 |
| Auditing, monitoring, and adapting - internal auditing procedures | p. 171 |
| Auditing, monitoring, and adapting - external auditing procedure | p. 172 |
| Red flags | p. 172 |
| Recommended procedures when bribery is suspected in an organization (as either giver or receiver) | p. 174 |
| Discovering and investigating bribery | p. 175 |
| After the investigation | p. 176 |
| Case studies from the Ministry of Justice | p. 178 |
| Who would be a director? Directors' liabilit | p. 188 |
| The sales director and "a small part" in corruptio | p. 188 |
| The CEO and substantial payments to senior government officials | p. 189 |
| The "director" of marketing | p. 191 |
| The law enforcement response | p. 195 |
| Forces fighting bribery | p. 197 |
| The UK anti-corruption agencies | p. 198 |
| Bilateral relations: Britain and Nigeria | p. 202 |
| Multilateral enforcement initiatives: constraints on law enforcement and barriers to cooperation | p. 202 |
| The problem of finite resources | p. 204 |
| Uncertainty | p. 206 |
| The popularity of negotiated settlements | p. 207 |
| Disadvantages and criticisms of settlements | p. 208 |
| The way forward | p. 209 |
| Global efforts: battling against the chain of corruption | p. 211 |
| The Egmont Group | p. 212 |
| The EU anti-corruption agenda and the Stockholm Programme | p. 213 |
| The World Bank | p. 214 |
| Strengthening law enforcement and building institutions in | |
| developing countries: spotlight on South-East Asia | p. 216 |
| Contrasting approaches to enforcement: Russia and China | p. 217 |
| Curbing bribery and the way forward: anti-bribery processes, for companies, police, and the courts | p. 219 |
| Who commits bribery, and why | p. 219 |
| The institutional imperative, prevention followed by cure | p. 223 |
| Preventing bribery through policy and procedure | p. 224 |
| Aon, the FSA, and preventive measures | p. 225 |
| restitution of the losses to the victim | p. 226 |
| p. 232 | |
| Appendices: | |
| Case study: phone hacking and corruption | p. 235 |
| Interview with Richard Alderman, June 27, 2011 | p. 241 |
| Maplecroft's Business Integrity and Corruption Index 2011 | p. 248 |
| Notes | p. 251 |
| Index | p. 287 |
| Table of Contents provided by Ingram. All Rights Reserved. |
ISBN: 9780230298439
ISBN-10: 0230298435
Published: 20th September 2011
Format: Hardcover
Language: English
Number of Pages: 318
Audience: General Adult
Publisher: Springer Nature B.V.
Country of Publication: GB
Edition Number: 1
Dimensions (cm): 23.39 x 15.6 x 1.91
Weight (kg): 0.58
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