Due to the nature of the industry and the vast number of ongoing projects, construction companies are particularly susceptible to misconduct. It is important to know how to report incidents correctly and understand prevention strategies.
Why is bribery so prevalent in construction?
Bribery and corruption are common in the construction industry for many reasons. Companies must be aware of the following factors to mitigate the risks.
Complex regulations
Most construction projects are large and take a considerable amount of time to finish. Often, projects require multiple processes, such as approvals, permits, and inspections from different parties, before proceeding with the construction. This creates opportunities for those involved to offer or accept bribes to speed up the process or overlook violations that might be holding up the work.
Large sums of money
With big projects comes significant financial investments. When large sums of money are involved, the temptation for companies to offer or accept bribes becomes higher as there's more at stake. Bribing to secure contracts, relax inspections or gain preferential treatment are all forms of misconduct that can lead to fines and even the loss of business.
Competitive industry
The industry is highly competitive, often making companies feel pressured into offering bribes to win contracts or gain a competitive edge against other companies. However, it’s important to remain competitive without resorting to bribery or corruption. Upholding integrity not only protects your company's reputation and success but will also help build trust between your customers and suppliers.
Long project deadlines
Completing a project on time and within budget, especially for larger projects, can be stressful and sometimes proves difficult. This can result in people feeling pushed into taking shortcuts and engaging in unethical behaviours like bribery to avoid delays or additional costs.
Preventing bribery in construction
Bribery will always be a risk in the construction sector, but that doesn't mean you can't take proactive steps to prevent it. Here are some ways you can safeguard your business from bribery and corruption.
1. Open communication
Those in leadership roles should always encourage an environment where employees feel confident to voice their concerns openly. In larger companies, it can be challenging to monitor all employees and their activities, making the implementation of an effective whistleblowing policy essential. This will assure employees that their reports of potential bribery will be actioned properly.
2. Regular staff training
Ongoing training is crucial in preventing bribery incidents. It's important that all employees throughout your company understand and embrace bribery and corruption prevention policies and procedures. The training you provide should do more than just clarify what's acceptable and what isn't - it should instil the right behaviours.
Employees should be aware of the human impact of bribery and their specific responsibilities to help prevent it in their daily situations.
3. Implement due diligence on all third parties
Anti-bribery laws also apply to all your third parties, such as suppliers, partners, and anyone else representing your company. You are responsible for ensuring these parties comply with anti-bribery laws.
4. Conduct regular risk assessments
It is essential to regularly assess areas within your company that could be vulnerable to bribery. Ensure you have the right procedures and policies in place so that you are prepared to take action if necessary.
Want to learn more about anti-bribery compliance?
We have created a bribery and corruption roadmap to help you navigate the compliance landscape, supported by a comprehensive library of courses.
We also have 100+ free compliance training aids, including assessments, best practice guides, checklists, desk aids, eBooks, games, posters, training presentations and even e-learning modules!
Finally, the SkillcastConnect community provides a unique opportunity to network with other compliance professionals in a vendor-free environment, priority access to our free online learning portal and other exclusive benefits.
