Bribes: is it better to give than to receive?
Some organisations – government, bodies like the Bank of England and even a few companies – keep a register of hospitality received by their employees. Lord Woolf’s report on (and for) BAE Systems suggests a log of gifts given.
The former Lord Chief Justice was asked to produce his report because BAE’s critics think gifts are a synonym for bribes.
The company already produces a corporate social responsibly report that uses up several forests to explain how green it is: now it seems it is to add a volume explaining the ethics of arms dealing. No matter that the OECD, US department of justice and even the UK government say corruption is illegal and BAE has constantly denied crossing the line, Woolf thinks this has to be spelt out.
A cynic might see this as a PR exercise that is a response to the SFO’s investigation in Britain – hastily terminated by the UK government when it got too hot – plus investigations in six other countries. BAE management commissioned the report, accepted it, admitted that perhaps it could have done better in the past, and then sought a further review of the outstanding allegations.
BP sought a similar external review of its activities after the Texas refinery fire and went through its mea culpers while the heavy hand of the law looked for its own remedies. The mining industry is not beyond pre-empting criticism with its own environmental reports.
The test will be to see if Woolf’s report is ever heard of again or left to gather dust on the shelf. The register of gifts given is for internal purposes only – not external inspection.
The danger is that ethics become the new green, with companies competing to be cleaner than each other. If those companies with nothing to hide start telling their shareholders how ethical they are, the others may be blackmailed into following. Disclosure may also be the excuse for curtailing corporate hospitality.
