Owner: CEO
Last updated: July 2022
1. PURPOSE
1.1 This policy exists to set out the responsibilities of InHive (hereinafter referred to as “the Charity”) and those who work for and with us, with regards to observing, upholding and reinforcing our zero -tolerance position on fraud, bribery and corruption. It also has the purpose of establishing controls to ensure compliance with all applicable anti -bribery regulations, and to act as a source of information and guidance for those working for and with the Charity, to help us prevent, detect, address and report on fraud, bribery and corruption issues, as well as understand our responsibilities.
2. SCOPE – WHO IS COVERED BY THIS POLICY?
2.1 This policy applies to all employees (whether permanent, fixed- term, temporary), consultants, contractors, volunteers, interns, seconded workers, business partners or any other person or persons associated with the Charity, or any of our subsidiaries or their employees, wherever located (within or outside of the UK) (“Employees”). The policy also applies to the Board of Trustees, officers, and committee members.
2.2 In this policy, “third-party” means any individual or organisation encountered during an Employee’s work for the Charity. It includes actual and potential clients, customers, suppliers, distributors, business contacts, agents, advisers, donors and government and public bodies, which includes their advisors, representatives, officials, politicians, and public parties. All arrangements with third parties should be subject to clear contractual terms, including specific provisions requiring them to comply with minimum standards and procedures in relation to fraud, bribery and corruption.
3. POLICY STATEMENT
3.1 The Charity is committed to conducting our work in an ethical, legal, honest and transparent manner, and is committed to implementing and enforcing systems that ensure fraud, bribery, corruption, and other forms of corporate dishonesty are prevented. We are committed to acting professionally, fairly, within the law and with integrity in all business dealings and relationships, wherever in the world we operate, across all programs and operations with which we are associated.
3.2 The Charity will uphold all laws relevant to countering fraud, bribery and corruption, in all jurisdictions in which it operates. Specifically, it is bound by the laws of the UK, including the Bribery Act 2010, regarding our conduct both at home and abroad.
3.3 The Charity has a zero-tolerance policy with respect to fraud, bribery and corruption in all forms. This is because where fraud, bribery and/or corruption occur:
- it diminishes our impact in the work we do and is not just a loss to the Charity, but ultimately our partners and their beneficiaries, namely people living in under-resourced environments;
- it undermines the viability of our organization and may have a major impact on our reputation, on donor confidence, and therefore again on our beneficiaries and our ability to conduct our work.
3.4 Bribery and corruption are punishable for individuals by up to ten years’ imprisonment and a fine. If the Charity is found to have taken part in corruption, it could face an unlimited fine, be excluded from tendering for public contracts and face damage to its reputation. The Charity, therefore, takes its legal responsibilities very seriously
4. DEFINITIONS
For the purposes of this policy, the Charity adopts the following definitions:
4.1 Fraud: Any act or omission that intentionally misleads, or attempts to mislead, another party in order to obtain a financial or other benefit, or to avoid an obligation. It may also include the theft or misuse of the Charity’s funds or other resources, by an Employee or a third party, which may or may not also involve misstatement of financial documents or records to conceal the theft or misuse.
4.2 Bribery
4.2.1 A BRIBE refers to a financial or other inducement, reward or thing of value, offered or provided in exchange for, or to influence, an action which is illegal, unethical, a breach of trust or improper in any way. Bribes can take the form of money, gifts, loans, fees, hospitality, services, discounts, the award of a contract, or any other advantage or benefit.
4.2.2 BRIBERY is the offering, promising, agreeing, giving, paying, accepting, receiving, authorising or soliciting of a bribe, to another individual or organization, to induce, persuade or influence an action or decision, to gain any commercial, contractual, regulatory, legal, or personal advantage. This can be directly or indirectly through a third party.
4.3 Corruption: The abuse of one’s authority or entrusted position or power for private gain.
5. GENERAL RULES
5.1 It is not acceptable for an Employee (or someone on behalf of an Employee) to:
5.1.1 give, promise to give, or offer, a payment, gift or hospitality with the expectation or hope that a business advantage will be received, or to reward a business advantage already given;
5.1.2 give or accept a gift or hospitality during any commercial negotiations or tender process, if this could be perceived as intended or likely to influence the outcome;
5.1.3 accept a payment, gift or hospitality from a third party that you know or suspect is offered or provided with an expectation that a business advantage will be provided by the Charity, for them or anyone else, in return
5.1.4 accept hospitality from a third party that is unduly lavish or extravagant under the circumstances;
5.1.5 give, promise to give, or offer, a payment, gift or hospitality to a government official, agent or representative to “facilitate” or expedite a routine procedure;
5.1.6 offer or accept a gift to or from government officials or representatives, or politicians or political parties, without the prior approval of the compliance manager (CEO –Kamini Paul);
5.1.7 threaten or retaliate against another individual who has refused to commit a bribery offence or who has raised concerns under this policy; or
5.1.8 engage in any other activity that might lead to a breach of this policy.
6. GOVERNMENT OFFICIALS
A government official is any individual who is or has been entrusted with a prominent public function, employees of the government, candidates for public office, employees of government owned or controlled companies, public international organisations, or political parties. This can be extended to family members and close associates of the above in certain circumstances.
7. FACILITATION PAYMENTS AND KICKBACKS
Facilitation payments are a form of bribery made for expediting or facilitating the performance of a public official for a routine or necessary governmental action. Facilitation payments tend to be small, unofficial payments demanded by low-level officials to obtain a level of service to which one would normally be entitled. The Charity’s strict policy is that facilitation payments must not be paid.
8. POLITICAL CONTRIBUTIONS
In accordance with the UK Charities Commission guidelines, the Charity does not make donations, whether in cash or kind, in support of any political parties or candidates in any jurisdiction.
9. GIFTS AND HOSPITALITY
9.1 The Charity accepts normal and appropriate gestures of hospitality and goodwill, and this policy does not prohibit the giving or receiving of reasonable and appropriate hospitality for legitimate purposes, such as building relationships, maintaining our image or reputation, or marketing our products and services. The giving or receiving of a gift must meet the following requirements:
9.1.1 it is not made with the intention of influencing the party to whom it is being given, to obtain or reward the retention of a business or a business advantage, or as an explicit or implicit exchange for favours or benefits;
9.1.2 it is not made with the suggestion that a return favour is expected;
9.1.3 it is in compliance with UK and local law;
9.1.4 it is given in the name of the Charity, not in an individual’s name
9.1.5 it does not include cash or a cash equivalent (e.g., a voucher or gift certificate);
9.1.6 it is appropriate for the circumstances (e.g. as a small thank you to a partner for helping with a large project upon completion);
9.1.7 it is not unduly lavish or extravagant nor given at an inopportune time so that it could be seen as an inducement or reward for preferential treatment (e.g., during contractual negotiations or a tender process);
9.1.8 it is of an appropriate type and value and given at an appropriate time, taking into account the reason for the gift;
9.1.9 it is given/received openly, not secretly;
9.1.10 it is not selectively given to a key, influential person, with the intention of directly influencing them;
9.1.11 it is not offered to, or accepted from, a government official or representative or politician or political party, without the prior approval of the CEO;
9.1.12 all gifts must be declared to the CEO and Board of Trustees.
9.2 The Charity recognises that the practice of giving and receiving gifts varies between countries, regions, cultures, and religions, and what might be normal and acceptable in one region may not be in another. The test to be applied is whether, in all the circumstances, the gift or hospitality is reasonable and justifiable. The intention behind the gift should always be considered.
9.3 Where it would be inappropriate to decline the offer of a gift (i.e., when meeting with an individual of a certain religion/culture who may take offence), the gift may be accepted so long as it is promptly declared to the CEO, who will assess the circumstances.
10. RECORD KEEPING
10.1 Employees must declare and keep a written record of all hospitality or gifts offered or accepted. Employees must also submit all expenses claims relating to hospitality, gifts or payments to third parties, in accordance with the Charity’s Expenses Policy and record the reason for expenditure. This record will be subject to review by the Board of Trustees.
10.2 All accounts, invoices, and other records relating to dealings with third parties, including suppliers and customers, should be prepared with strict accuracy and completeness. Accounts must not be kept “off-book” to facilitate or conceal improper payments.
11. EMPLOYEE RESPONSIBILITIES
11.1 Employees of the Charity must read, understand, and comply with the information contained within this policy, and with any training or other anti-fraud, bribery and corruption information with which they are provided.
11.2 Fraud and bribery are illegal. Employees must not engage in any form of fraud or bribery, whether directly, passively or through a third party. They must not bribe a foreign public official anywhere in the world. They must not accept bribes in any degree and if they are uncertain about whether something is a bribe or a gift or an act of hospitality, they must seek further advice from the CEO.
11.3 All employees are equally responsible for the prevention, detection, and reporting of fraud, bribery and other forms of corruption. They are required to avoid any activities or conduct that could lead to, imply, or appear to be a breach of this policy.
11.4 If you have reason to believe or suspect that an instance of fraud, bribery or corruption has occurred, or will occur in the future, which breaches this policy, you must notify the CEO.
11.5 It is the responsibility of all Employees to be familiar with the risks that might arise in their area, be alert for any indication of fraud, bribery, corruption or other improper activity, and maintain controls to avoid such occurrences. Employees must be alert for occurrences of such misconduct, be aware that unusual transactions or behaviours could be indications of fraud or bribery, and report potential instances as outlined below.
11.6 Managers are required to ensure that all staff under their control be given a copy of this policy and acknowledge its receipt. Managers should also ensure that staff be encouraged to report suspected issues of fraud, bribery or corruption.
12. REPORTING PROCEDURE – HOW TO RAISE A CONCERN
12.1 Employees are encouraged to raise concerns about any issue or suspicion of wrong-doing at the earliest possible stage. If an Employee is unsure whether a particular act constitutes fraud, bribery or corruption, or if an Employee has any other queries or concerns, these should be raised with Kamini Paul (CEO). If, for whatever reason, the Employee believes it cannot raise its concerns with Kamini Paul, then the Employee should discuss the matter with the Chair of the Board of Trustees Sarabajaya Kumar.
12.2 It is important that an Employee tells Kamini Paul (CEO) as soon as possible if he/she is offered a bribe by a third party, is asked to make one, suspects that this may happen in the future, or believes that he/she is a victim of another form of unlawful activity.
12.3 The Charity will familiarise all Employees with its whistleblowing procedures so employees can vocalise their concerns swiftly and confidentially.
12.4 Any suspicions of fraud or bribery will be taken seriously by The Charity. Managers receiving reports of suspected fraud or bribery must immediately notify the issue and proposed resolutions or actions to be taken to the CEO (Kamini Paul) or Chair of the Board of Trustees (Sarabajaya Kumar). In consultation with the persons notified, arrangements must be made for a comprehensive investigation of the issue. All work of the investigation team should be documented, including transcripts of interviews conducted. The conclusion of all internal investigations must be documented.
13. WHISTLEBLOWER PROTECTIONS
If an Employee refuses to accept or offer a bribe, or reports a concern relating to potential or actual act(s) of fraud, bribery or corruption, the Charity understands that the Employee may feel worried about potential repercussions. The Charity aims to encourage openness and will support anyone who raises genuine concerns in good faith under this policy, even if they turn out to be mistaken.
14. WHO IS RESPONSIBLE FOR THE POLICY?
14.1 Sarabajaya Kumar has overall responsibility for ensuring this policy complies with the Charity’s legal and ethical obligations, and that all those under its control comply with the policy. Sarabajaya Kumar has the responsibility, on behalf of the Board of Trustees, for monitoring the operation and effectiveness of the Charity’s anti-bribery and fraud arrangements. Abigail Nokes has the primary and day-to-day responsibility for implementing this policy and for dealing with any queries on its interpretation. Management at all levels are responsible for ensuring those reporting to them are made aware of and understand this policy and are given adequate and regular training on it.
14.2 All Employees are responsible for the success of this policy and should ensure they use it to prevent and/or disclose any suspected danger or wrongdoing.
14.3 Internal control systems and procedures designed to prevent fraud, bribery and corruption are subject to regular audits to ensure that they are effective in practice.
14.4 Any need for improvements will be applied as soon as possible. Employees are encouraged to offer their feedback on this policy if they have any suggestions for how it may be improved. Feedback of this nature should be addressed to the CEO (Kamini Paul).
14.5 This policy does not form part of any Employee’s contract of employment and it may be amended at any time.
- Actions arising from internal investigations into breaches of this policy and consequences for breach of this policy
15.1 All potential incidents of violations of this policy must be promptly reported to Kamini Paul, who will take appropriate action after consideration of all the relevant facts. The Charity will involve outside counsel as required.
15.2 If any Employee is found to have breached this policy, they could face disciplinary action up to and including dismissal for gross misconduct. Internal disciplinary procedures are independent from any action that may be initiated by any government agency
15.3 Any non-employee/partner organisation/third party who breaches this policy may have their contract terminated with immediate effect.
APPENDIX A: SPECIFIC EXAMPLES OF CONDUCT PROHIBITED UNDER THIS POLICY
It is not acceptable for an Employee (or someone on behalf of an Employee) to engage in any of the following conduct:
- Abuse a position of trust: improperly use one’s position within the Charity or a connected organisation in order to materially benefit oneself or any other party (e.g., intentionally providing confidential material to a third party);
- Bank or cheque fraud: dishonestly manipulate any banking system or record (e.g., a cheque, bank statement, or electronic transfer);
- Brand fraud: use the Charity’s name, branding, documentation, or reputation for unauthorised or illegitimate ends;
- Corruption of a government official: give gifts or offer payments (sometimes called a “facilitation payment”) to a government official, or to any other person at the request of a government official, in any country, in order to facilitate or speed up a routine or necessary procedure;
- Embezzlement: misuse funds, property, resources, or other assets that belong to the Charity or a connected organisation or individual for personal gain;
- Expenses fraud: dishonestly use the expenses system to pay money or other benefits to which the recipient is not entitled, or falsify expense reimbursement reports;
- False accounting: deliberately enter false or misleading information into any form of accounting or financial record or deliberately omit relevant information, including maintaining “off-book” accounts;
- Forge or falsify documents: dishonestly create, alter, sign, or use all or any part of a document, including but not limited to, contracts, reports, or other records;
- Pay or receive “kickbacks”: a type of bribery, typically payments made in return for a business favour, advantage or benefit, often in the form of a commission for services rendered;
- Money laundering: legitimise or hide the proceeds of criminal activity, often through a series of legitimate financial transactions (including concealing, disguising, transferring, acquiring, using, or possessing criminal property);
- Nepotism or patronage: improperly use one’s employment to favour or materially benefit friends, relatives or other associates;
- Payroll fraud: manipulate the payroll system to make unauthorised payments to oneself or another;
- Procurement fraud: engage in any dishonest behaviour relating to the procurement or tendering process, (e.g., falsely create bids or quotes, share confidential procurement-related information with third parties, pay for a product that does not meet the description of the product the Charity contracted to purchase, or agree to requests for false invoices);
- Supply chain fraud: misdirect or take goods, forge stock records, or create fictitious companies through which to channel payments;
- Tax or duty evasion: avoid paying a tax or other duty that one is aware should be paid;
- Theft: take, without permission and with the intention to permanently deprive, something that belongs to another;
- Undisclosed conflicts of interest: fail to disclose accurate and complete information about personal or financial interests, commitments, or loyalties that relate to one’s duties at the Charity.
- Blackmail or extortion: make unwarranted demands on an individual accompanied by threats for non-compliance/co-operation, in order to attain personal gain or avoid loss;
- Dishonestly destroy, conceal or remove records;
- Bribery: give, promise to give, offer, any payment, gift, hospitality or other benefit, in the expectation or hope that a business (or other) advantage will be received in return, or to reward a business advantage already given; accept any offer from a third party that one knows or suspects is made with the expectation that the Charity will provide a business advantage for them or anyone else.
- Engage in any activity that might lead to a breach of this policy
APPENDIX B: POTENTIAL RISK SCENARIOS: “RED FLAGS”
The following is a list of possible red flags that may arise during the course of an Employee’s work for the Charity and which may raise concerns under various anti-bribery and anti-corruption laws. The list is not intended to be exhaustive and is for illustrative purposes only. If an Employee encounters any of these red flags while working for the Charity, the Employee must report them promptly to any member of the Board of Trustees:
- the Employee becomes aware that a third party engages in, or has been accused of engaging in, improper business practices;
- the Employee learns that a third party has a reputation for paying bribes, or requiring that bribes are paid to them, or has a reputation for having a “special relationship” with third parties;
- a third party insists on receiving a commission or fee payment before committing to sign up to a contract with the Charity, or carrying out a government function or process for the Charity;
- a third party requests payment in cash and/or refuses to sign a formal commission or fee agreement, or to provide an invoice or receipt for a payment made
- a third party requests that payment is made to a country or geographic location different from where the third party resides or conducts business;
- a third party requests an unexpected additional fee or commission to “facilitate” a service;
- a third party demands lavish entertainment or gifts before commencing or continuing contractual negotiations or provision of services;
- a third party requests that a payment is made to “overlook” potential legal violations;
- the Employee receives an invoice from a third party that appears to be nonstandard or customised;
- a third party insists on the use of side letters or refuses to put terms agreed in writing;
- the Employee notices that the Charity has been invoiced for a commission or fee payment that appears large given the service stated to have been provided;
- a third party requests or requires the use of an agent, intermediary, consultant, distributor or supplier that is not typically used by or known to the Charity; or
- the Employee is offered an unusually generous gift or offered lavish hospitality by a third party.