{"id":8703,"date":"2017-12-01T00:40:36","date_gmt":"2017-11-30T16:40:36","guid":{"rendered":"https:\/\/zegal.com\/?p=8703"},"modified":"2023-01-18T13:27:48","modified_gmt":"2023-01-18T05:27:48","slug":"company-need-anti-corruption-policy","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/company-need-anti-corruption-policy\/","title":{"rendered":"Everything about Anti Corruption Policy for Hong Kong Companies"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8704 size-fp-medium\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-1024x681.jpg\" alt=\"corruption rise and police is handling the corruption\" width=\"1024\" height=\"681\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-1024x681.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-300x199.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-768x511.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-640x426.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-1200x798.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/12\/corruption-1920x1277.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_Anti-Corruption_Policy\"><\/span>What is an Anti-Corruption Policy?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An <\/span><a href=\"https:\/\/zegal.com\/anti-corruption-policy\/\"><span style=\"font-weight: 400;\">Anti-Corruption Policy<\/span><\/a><span style=\"font-weight: 400;\"> states a company\u2019s commitment to ethical and anti-corruption practices in doing business, and its position and key measure against corruption. It sets out the basic standard of conduct expected of all staff and board members, as well as your company\u2019s stance on acceptance of advantage and handling of conflicts of interest. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Anti-Corruption Policy should be issued to all staff members, directors and members of any management board and it should be made clear that the policy applies to all personnel. No one should be exempted from the policy. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"http:\/\/cpas.icac.hk\/UPloadImages\/InfoFile\/cate_43\/2017\/2011e868-01e0-4a6c-bc6e-967e84e6a7eb.pdf\"><span style=\"font-weight: 400;\">key elements<\/span><\/a><span style=\"font-weight: 400;\"> of an Anti-Corruption Policy are as follows: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pledge to adopt ethical and anti-corruption business practices; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scope of the policy; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Statement of policy against corruption in doing business and zero tolerance of corruption of any form;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Key integrity and conduct requirements for the company\u2019s personnel; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ethical and anti-corruption requirements for business partners; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whistle-blowing policy for corruption and violation of the anti-corruption policy, and policy on the handling of reports; and <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Brief description of the company\u2019s anti-corruption programme.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Does_My_Company_Need_an_Anti_Corruption_Policy\"><\/span>Does My Company Need an Anti Corruption Policy?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many top business hubs around the world pride themselves on having a robust anti-corruption regime. Hong Kong is no exception. It was ranked the 15th least corrupt place in the <\/span><a href=\"https:\/\/www.transparency.org\/country\/HKG\"><span style=\"font-weight: 400;\">Corruption Perceptions Index 2016<\/span><\/a><span style=\"font-weight: 400;\"> and ranked the place with the least bribery risk in Asia in the <\/span><a href=\"http:\/\/www.icac.org.hk\/en\/intl-persp\/survey\/global-business-bribery-risk-index\/index.html\"><span style=\"font-weight: 400;\">TRACE Bribery Risk Matrix<\/span><\/a><span style=\"font-weight: 400;\">. According to the annual survey conducted by the <\/span><a href=\"http:\/\/www.icac.org.hk\/\"><span style=\"font-weight: 400;\">Independent Commission Against Corruption<\/span><\/a><span style=\"font-weight: 400;\"> (ICAC) which measured public perception of corruption, 99.2% of the respondents agreed that keeping Hong Kong corruption-free is important to the overall development of Hong Kong. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from landing your business in trouble with the law, corruption can also bring about many negative effects, such as a loss of resources when an employee tries to cover up his corrupt activities. As a business owner in Hong Kong, it is important that you assess the risk of corruption in your company and implement an Anti-Corruption Policy to tackle potential corrupt practices. <\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_corruption\"><\/span>What is corruption?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Corruption occurs when an individual abuses his authority for personal gain at the expense of other people. It can take many forms, including bribery and embezzlement. In Hong Kong, the anti-corruption laws are laid down in the <\/span><a href=\"https:\/\/www.elegislation.gov.hk\/hk\/cap201?pmc=1&amp;m=1&amp;pm=0\"><span style=\"font-weight: 400;\">Prevention of Bribery Ordinance<\/span><\/a><span style=\"font-weight: 400;\"> (POBO) which is enforced by ICAC. Under POBO, corruption is prohibited in both the public and private sectors. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In relation to the private sector, POBO states that it is illegal to offer any advantage to an employee in connection with his employer\u2019s business without the latter\u2019s permission. It is also illegal to solicit or accept any advantage without the employer\u2019s permission. <\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Advantage<\/span><\/i><span style=\"font-weight: 400;\"> in this case includes money, gifts, loans, commissions, offices, contracts, services, favours and discharge of liability in whole or in part, but does not include entertainment. <\/span><i><span style=\"font-weight: 400;\">Entertainment<\/span><\/i><span style=\"font-weight: 400;\"> refers to the provision of food and drink, for consumption on the occasion when it is provided, and of any other entertainment provided at the same time (e.g. singing and dancing). <\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_consequences_if_an_employee_is_found_to_have_acted_corruptly\"><\/span>What are the consequences if an employee is found to have acted corruptly?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Conviction of an <\/span><a href=\"http:\/\/hong-kong-economy-research.hktdc.com\/business-news\/article\/Guide-to-Doing-Business-in-Hong-Kong\/Preventing-Corruption\/hkg\/en\/1\/1X000000\/1X0A9T7E.htm\"><span style=\"font-weight: 400;\">offence of corruption<\/span><\/a><span style=\"font-weight: 400;\"> carries a maximum penalty of 7 years\u2019 imprisonment and a fine of HKD 500,000. The convicted individual may be ordered to make full restitution of the illicit gains and may be prohibited from being a director or manager of any company, managing any partnership or practising any profession for a maximum of 7 years. \u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_prevent_corruption_in_my_company\"><\/span>How to prevent corruption in my company?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Given the gravity of corruption, it is important that you maintain a corruption-free business. This boosts your company\u2019s reputation and staff morale and ultimately enhances your business\u2019 competitive edge. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Hong Kong Stock Exchange (HKEX) requires on a \u2018comply or explain\u2019 basis that listed companies disclose their anti-corruption policies. Even if your business is not a listed company, it is beneficial for you to implement an anti-corruption programme in order to prevent, detect and deter corruption. An <\/span><a href=\"http:\/\/cpas.icac.hk\/UPloadImages\/InfoFile\/cate_43\/2017\/2011e868-01e0-4a6c-bc6e-967e84e6a7eb.pdf\"><span style=\"font-weight: 400;\">effective anti-corruption programme<\/span><\/a><span style=\"font-weight: 400;\"> should include the following elements: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An Anti-Corruption Policy; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ethical standard and anti-corruption guidance for all company personnel, including directors and staff, through a Code of Conduct; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A mechanism for the identification and assessment of corruption risk; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Anti-corruption control; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Training and communication. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Apart from putting in place an Anti-Corruption Policy, it is important that this policy is properly communicated to all your stakeholders. Company policies and business processes are after all carried out by people. Business owners need to take steps to promote an ethical, anti-corruption and compliance friendly culture within their company and build capacity for corruption prevention among staff at all levels. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Where_can_I_go_for_anti-corruption_resources\"><\/span>Where can I go for anti-corruption resources?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Set up by the ICAC the Hong Kong Business Ethics Development Centre develops resources that address the ethical issues faced by businessmen and professionals and help them enhance ethical management in the private sector. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"http:\/\/cpas.icac.hk\/\"><span style=\"font-weight: 400;\">Corruption Prevention Advisory Service<\/span><\/a><span style=\"font-weight: 400;\"> (CPAS) is a specialised unit within ICAC that focuses on providing professional corruption prevention advice and services to private companies, organisations and individuals. <\/span><\/p>\n<p><a href=\"http:\/\/cpas.icac.hk\/EN\/Info\/Lib_Index?cate_id=3\"><span style=\"font-weight: 400;\">Check out the anti-corruption guides and tools by CPAS<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8633 size-fp-medium\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min-1024x701.png\" alt=\"Zegal Screenshot\" width=\"1024\" height=\"701\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min-1024x701.png 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min-300x206.png 300w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min-768x526.png 768w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min-640x438.png 640w, https:\/\/zegal.com\/wp-content\/uploads\/2017\/11\/screenshot-app-min.png 1200w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/p>\n<p style=\"text-align: center;\"><strong><span style=\"color: #ffffff;\"><a class=\"blog__button\" style=\"color: #ffffff;\" href=\"https:\/\/register.zegal.com\/\">Claim your free trial. Start drafting legal documents with Zegal today.<\/a><\/span><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Do you have any topics in mind that you want to hear about at future Zegal events? <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is an Anti-Corruption Policy? An Anti-Corruption Policy states a company\u2019s commitment to ethical and anti-corruption practices in doing business, and its position and key measure against corruption. It sets out the basic standard of conduct expected of all staff and board members, as well as your company\u2019s stance on acceptance of advantage and handling [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":8704,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[55,14278],"tags":[],"usecases":[13702],"businesstypes":[],"country":[],"class_list":["post-8703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-productivity","category-business-management","usecases-uncategorised"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - 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