We also send an Anti-Corruption Brochure to all customers, which explains the challenges of avoiding corruption in international trade and suggests actions companies might take to protect themselves. Anti-corruption FAQs 1. Why do you now require our company to sign a declaration denying corruption in EDC supported business transactions? Consequently, we must take steps to ensure that it is not supporting criminal acts by supporting export transactions that involve corruption of foreign public officials. We will rely on due diligence and on the anti-corruption declarations provided by its clients as assurance in this regard.
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We also send an Anti-Corruption Brochure to all customers, which explains the challenges of avoiding corruption in international trade and suggests actions companies might take to protect themselves. Anti-corruption FAQs 1.
Why do you now require our company to sign a declaration denying corruption in EDC supported business transactions? Consequently, we must take steps to ensure that it is not supporting criminal acts by supporting export transactions that involve corruption of foreign public officials. We will rely on due diligence and on the anti-corruption declarations provided by its clients as assurance in this regard.
In taking these steps, we will also be serving the interests of its clients by alerting them to the new criminal law. Our Code of Business Ethics states that we shall take measures to avoid supporting corrupt transactions. The agencies and countries involved are committed to seek anti-corruption declarations as one of the measures against corruption. The declaration states that my company has not been and will not knowingly be party to a violation of the Corruption of Foreign Public Officials Act.
What does this law say and how am I affected? In essence, the new Canadian law criminalizes international bribery and associated practices including things such as conspiracy, aiding and abetting, and counseling others to provide a bribe. I have never been involved in corruption and take exception to signing the declaration.
Why should I? What will happen if I refuse? We are confident that, for the vast majority of its clients, the anti-corruption declaration will not pose any problem. As a public institution of Canada, we require this declaration from our clients. We do not suggest or imply that our clients may be involved in prohibited activities. We assume that all our clients are conducting their affairs in a lawful and law-abiding manner, but is simply asking the persons who know best about these affairs to confirm the accuracy of that assumption.
Although we will respect a decision not to sign the declaration, we may not be able to proceed with the transaction and may no longer be able to provide insurance coverage. What will happen if I sign the declaration while knowingly being involved in corruption? What if I am involved in corruption without my knowledge? EDC will rely on the truthfulness of the anti-corruption declarations furnished by its customers both in the protection of its employees and of its own interests.
We will also have the right to withdraw from a contract and refuse the claims thereunder, if we determine that corruption, as defined under the Corruption of Foreign Public Officials Act, is associated with the transaction. We will not tolerate a party knowingly delivering a false anti-corruption declaration, and would, in such an unlikely circumstance, consider all of our options.
If you have any questions about the implications of engaging in such conduct you should consult your legal counsel. If the declaration was furnished without your knowledge of corruption, there should be no liability unless there has been "willful blindness" on your part. In other words, willful ignorance of the corruption i. We strongly recommend that you raise such complicated issues with you legal counsel, because we cannot provide legal advice to you. How can EDC and the Canadian government expect me to carry on business internationally in competition with companies that are willing to pay bribes?
First, the payment of bribes, and the possession of property obtained by bribery and the laundering of these proceeds have been made criminal offences in Canada by the Canadian Parliament. The amount of any fine would be at the discretion of the judge, and there is no maximum The penalty is comparable to the maximum penalty for domestic bribery in It is a criminal offence. The consequences of bribing can be disastrous both to you as an individual and to your business. And, as explained above, we cannot be associated with such activity.
Second, the international view of bribery is changing. The attitude towards bribery is moving from acceptance and tolerance to abhorrence and prohibition. The firm anti-corruption position of the World Bank and the many global anti-corruption initiatives of other world bodies are increasingly exposing the practice of bribery in an effort to control it. The 29 OECD countries have committed themselves to criminalizing the bribery of foreign public officials in their domestic laws by signing the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, in Paris on December 17, The OECD is following up on this binding commitment and how it is being implemented by each country.
Canada is among the many OECD countries that have already amended their domestic laws to conform with the Convention, and that is the substance of the new Canadian statute, the Corruption of Foreign Public Officials Act. Third, many countries have entered into mutual information and assistance agreements such as the Mutual Legal Assistance in Criminal Matters Act, that oblige police forces in each participating country to investigate allegations of bribery brought to them by other countries.
Disappointed business competitors, having lost the bidding for an international contract because of bribery, may turn to their domestic police force to initiate an investigation in the country of the alleged bribe payer if that country like Canada has passed anti-bribery laws. Can the activities of my agents expose my company to liability under this Canadian law? The declaration is intended to catch any knowing involvement in corruption as defined , whether committed directly by your company or its employees or indirectly through an agent.
Typically, the activities of an agent may expose the principal in this case, your company to liability. Literature is available describing the safeguards that companies should use in retaining agents. These safeguards relate to the selection of the agent, the reputation and qualifications of the agent, the language of the retainer, as well as the quantum of and the method and other arrangements for payment.
See related websites section for website addresses. The responsibilities and liabilities of a principal for the acts of its agent are no different with regard to the new anti-corruption law than they are with regard to other matters.
My company is extremely concerned about not violating anti-corruption laws. How can we distance ourselves from potential corruption in transactions? There are a number of indicators of potential corruption. These red flags should alert you to further investigate. You can also implement various anti-corruption measures. A discrete inquiry by your local lawyer or agent may save a great deal of difficulty. Is the jurisdiction in which you operate known for corruption?
You may wish to speak with the Canadian Embassy. Make sure your strategy for dealing with requests for bribes - a firm "no" - is determined well in advance. Have you clearly said "no"? Failure to say "no" can lead to the misunderstanding that your company might consider loans, rewards, or benefits of other kinds for a foreign official. Are others informed about your anti-corruption policy? What should I do if I discover that my company is involved in corrupt practices for transactions supported by EDC?
We believe that you should act as you would for any other criminal offence. We recommend that you obtain legal advice on the matter. Remember that criminal offences may be attributed to persons who may have no direct role in carrying out the offence.
Examples of such offences are conspiracy, counseling, aiding and abetting, etc. Combatting bribery and corruption December 9th is International Anti-Corruption Day Corruption is a serious crime that can undermine social and economic development in all societies. International Anti-corruption Day is part of a global campaign to raise awareness of the need to combat corruption. Responsible business.
Business ethics in Canada
Advertise Ethics in the Workplace Here are some brief introductory points on ethics in the workplace which is also known as business ethics. What is Ethics? For an individual ethics can be a straight-forward interpretation of what is right or wrong, and then acting by doing the right thing based on his or her moral principles and values such as respect, honesty, fairness, responsibility, etc. Ask a few people what do they understand by "business ethics", and you are bound to get a variety of theoretical interpretations. Ethics in the Workplace Business Ethics However, ethics in the workplace, or, business ethics, does not adopt such a simplistic approach as mentioned above. There are a variety of economic motives, and factors that impinge on workplace ethics e. Workplace ethics tend to be far more complex, and requires a more practical approach, which will take these economic motives and economic factors into consideration or into the equation when determining organizational behaviour models.
Canada Vs. America's Business Culture
Encyclopedia of Business and Professional Ethics
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