What is ISO 37001 Anti-Bribery Management Systems (ABMS) standard?
There is a new standard for preventing bribery in business: ISO 37001:2021 Anti-Bribery Management System standard was created by the International Organization for Standardization (ISO) to help companies worldwide increase and measure their efforts against bribery and corruption. This critical new standard mirrors numerous steps contained in:
- The US Foreign Corrupt Practices Act (FCPA)
- Good Practice Guidance on Internal Controls, Ethics and Compliance (OECD)
- Anti-Corruption Ethics and Compliance Handbook for Business (OECD)
- UK Bribery Act 2010
- The British Ministry of Justice’s Adequate Procedures document
ISO 37001 standard certifies that your organisation has implemented reasonable and proportionate measures to prevent bribery. These measures involve top-level leadership, training, bribery risk assessment, due diligence adequacy, financial and commercial controls, reporting, audit and investigation. But which types of organisations need this new standard? Read on to find out.
The ISO 37001 standard breakdown
This certification caters to the two most significant components that fall under fraud – bribery and corruption. Much like fraud bribery and can cause severe harm to any organisation and industry, consequences consist of monetary deficit, catastrophic legal penalties, damage to the brand, organisation reputation, and viable expansion. Statistics show that organisations own workforce is its top defence against corruption and hence fraud as most corruption is detected internally. Providing your personnel with the tools needed to prevent bribery and corruption and mitigate associated risks by attaining ISO 37001 training is a pre-emptive way of expressing your organisation’s commitment to ethical sustainability. Your workforce will essentially be able to identify any form of fraud and report it.
Find out more about ISO 37001 view ABAC® ISO 37001 ABMS brochure
Corporate and private sector
In the present era of globalisation, anti-corruption compliance plays a vital role for companies with high ethical values trying to expand business across borders and attract potential investors and business partners for the long term. Such companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be. Evidence of this comes from high-profile prosecutions of multi-national firms that are not only subject to significant fines but also risk loss of share value and reputation.
To meet these needs, the ISO 37001 standard is designed to apply to all organisations (or parts of an organisation) regardless of type, size and nature of the business activity. The program is tailored to the needs and requirements of the organisation.
Public sector organisations
Public sector organisations play critical roles, often interacting directly with the public they serve; they include utility service providers, the license issuing authorities and other regulatory bodies. These are vulnerable areas where authority is concentrated with weak financial positions that must fulfil the needs of both the service provider and its users. Such public sector organisations can benefit from the implementation of the ISO 37001 standard to control bribery and corruption for enhancement of their productivity level and play an improved role in the socio-economic development of their country.
Government departments
The government is a major stakeholder in the socio-economic development of a country; it determines departments to check and control bribery and corruption by creating laws and procedures to safeguard both the consumer and the vendor. Bribery costs nations its economic growth and creates social problems with consist of depression, prejudice, and scarcity. However, in many developing countries, anti-corruption laws and regulations are either weak or implemented unevenly, providing no results. Government-led steps or campaigns to fight corruption will therefore remain ineffectual, leading bribes to be recognised as part of conducting business. However, the menace of bribery and corruption can be mitigated through implementing ISO 37001:2021 standard, which provides safeguards within a management system, rather than temporary measures or mere slogans.
Mitigating fraud can be an extensive and challenging task if you don’t know where to start. Why not get in touch with us here at ABAC? We have experts ranging from all backgrounds and industries to ensure that your organisation will receive the bespoke service it needs to function ethically and systematically.
