This standard presents the requirements for an anti-bribery management system along with implementation guidance. By voluntarily adopting this standard, an organization can implement processes that ensure operations free from bribery and protect itself from all related risks.
A systematic approach, allocation of roles and responsibilities, commitment from top management, having a dedicated unit responsible for anti-bribery activities, and mechanisms for internal and external audits are essential. This prevents future errors or misconduct that could harm the business’s reputation or lead to legal risks. It also avoids suspicion from the public or removes doubts through transparent information sharing. This standard models a crucial management system of this nature.
Brief introduction to the standard:
The standard consists of 10 chapters. It has a high-level structure, thus shares similar chapter titles with other management standards issued since 2015.
- Chapter 4: Understanding the organization and its context
The first chapter in any management standard introduces understanding the organization and its environment, analyzing organizational characteristics, and planning management implementation accordingly. Specifically, section 4.1 deals with understanding the organization and its characteristics; 4.2 focuses on understanding the needs and expectations of all interested parties; 4.3 sets the scope for the management system implementation; 4.4 defines the anti-bribery management processes; and 4.5 covers bribery risk assessment.
Notably, section 4.5 includes a unique clause not commonly found in other standards: it addresses identifying factors and risk points related to bribery networks, analyzing possibilities to reduce these risks according to the organization’s characteristics, and maintaining continuous monitoring of risk level changes, especially in connection with organizational structural and leadership changes.
- Chapter 5: Leadership
Section 5.1 focuses on top management’s leadership and commitment, including:
5.1.1 requires top management, especially in group or multi-entity companies, to commit to operating free from bribery in their decision-making processes. It mandates an anti-bribery policy and demands fairness in procurement, recruitment, and performance evaluation, prohibiting preferential treatment or favoritism.
5.1.2 involves communication to employees about objectives, fostering a bribery-free organizational culture, and effectively designing the anti-bribery system.
Section 5.2 addresses policy, and 5.3 concerns the allocation of roles, responsibilities, and authorities. It specifies that a responsible unit for legal compliance and anti-bribery matters should exist, and decision-making authority should be delegated to avoid any individuals engaging in bribery.
- Chapter 6: Planning
Covers risk and opportunity assessment and the development of objectives and plans in sections 6.1 and 6.2.
- Chapter 7: Support
Defines organizational resources, employee competencies, hiring processes, training, information flow, documentation, and record-keeping requirements (sections 7.1 to 7.5).
- Chapter 8: Operation
8.1 requires planning, implementing, and monitoring operational processes. Each process should meet criteria, with control points established and adapted as necessary.
8.2 mandates compliance checks, including risk and situation assessments on transactions, projects, business plans, and interactions with specific groups.
8.3 deals with financial controls and risk management.
8.4 requires controls on non-financial activities such as procurement, sales, marketing, human resources, legal, and regulatory affairs.
8.5 requires implementing anti-bribery controls for business partners, scaled according to risk levels.
8.6 addresses commitments within anti-bribery networks and self-declarations, including risk assessment and monitoring.
8.7 concerns policies governing gifts, hospitality, donations, and similar benefits.
8.8 covers detection and control of improper conduct.
8.9 details procedures for handling public attention or suspicion, restoring trust, conducting necessary audits, publishing fairness and sustainability reports, and supporting whistleblower protections and reporting systems.
8.10 covers investigation procedures, reporting violations, authorization of investigators, confidentiality, and transparency of audit results. It also requires the organization to have a responsible person or unit for such controls.
- Chapter 9: Performance evaluation
Includes monitoring, measurement, analysis, evaluation (9.1), internal audit (9.2), management review (9.3), and oversight by the anti-bribery responsible unit (9.4).
- Chapter 10: Improvement
10.1 covers nonconformity detection and correction; 10.2 focuses on continual improvement.
Annex A provides explanations on understanding and applying requirements with examples and documentation guidance, detailed in A1-A22.
Organizations in government, non-governmental, and private sectors implementing this standard can undergo independent certification audits. Certification confirms that the organization has an anti-bribery management system in place and continuously improves it.
However, external audits are generally sample-based and conducted within agreed timeframes, not examining every single record or data. Their role is to verify system functionality rather than detailed data accuracy. Therefore, organizations must maintain ongoing internal controls and audits to ensure compliance and continuous improvement.
Bribery undermines citizens’ opportunities and creates unfair advantages for those with information, limiting the rights of all to live healthy, safe, and satisfied lives. In Mongolia, it is crucial that all organizations implement this system, and citizens should strongly demand this.
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By B. Oyuuntugs
07.09.2024
