ISO 37001 Certification: Requirements, Benefits and Certification Process

Business organisations are expected to be responsible to customers, investors, employees, regulators and business partners. Bribery and corruption can undermine that trust, and pose significant legal, financial, operational and reputational risks.

ISO 37001 offers a comprehensive structure that organizations can follow to create an Anti-Bribery Management System (ABMS).

Let's understand what is ISO 37001 Certification?

The ISO 37001 is an international standard which lays down the requirements and offers guidance on the establishment, implementation, maintenance and enhancement of an anti-bribery management system.

The standard provides guidance to organizations on how to prevent, detect and respond to bribery.

Can be used in any organization in various sizes and in various industries.

What's the point of Anti-Bribery Management?

There are numerous scenarios where bribery can be an issue in business.

Examples of potential risk areas are:

·         Procurement

·         Sales

·         Government interactions

·         Agents and intermediaries

·         Consultants

·         Gifts and hospitality

·         Donations and sponsorships

·         Joint ventures

·         Third-party relationships

It may be necessary for an organisation to have a more than just anti-bribery policy.

It requires practical controls which are effective throughout the business.

Understanding Bribery Risk

First, it's important to learn where the risks for bribery may be.

Industry, geographical markets, relationship with public officials, intermediary, transaction types and business structure are all risk factors.

A risk-based approach can help organizations prioritize resources to areas of potential increased exposure.

The main components of ISO 37001 are:

Anti-Bribery Policy

A clear leadership of the organization in relation to bribery.

Leadership

Senior management is a key contributor to developing an ethics culture in the organisation.

Risk Assessment

Organisations need to identify and evaluate bribery risks.

Due Diligence

Throw-in the right due diligence and the tool can assist organizations when assessing the relevant third parties and business relationships.

Strategies to control financial and commercial activity.

Appropriate payments and transactions will be minimised due to the presence of controls.

Training and Awareness

Staff and relevant business associates need to be aware of relevant anti-bribery obligations and expectations of the organization.

Reporting Mechanisms

Whether it be through a specific reporting line or other designated outlets, organisations should give a suitable means to raise concerns and report any suspected misconduct.

Investigation and Response

All incidents suspected to be criminal should be dealt with according to established procedures.

How ISO 37001 Certification Works?

The first step in establishing the anti-bribery controls is to evaluate existing controls.

This can involve the following aspects to the process of implementing:

·         Understanding organizational context.

·         Identifying bribery risks.

·         Setting up an anti-bribery policy.

·         Assigning responsibilities.

·         Developing risk-based controls.

·         Implementing due-diligence processes.

·         Setting up money and business measures.

·         Training employees.

·         Setting up reporting and investigation procedures.

·         Monitoring system effectiveness.

·         Conducting internal audits.

·         Performing management review.

·         Addressing nonconformities.

·         Successfully completing certification audit.

The benefits of ISO 37001 Certification are as follows:

Implementing an effective anti-bribery management system can assist organisations to:

·         Strengthen ethical culture

·         Identify bribery risks

·         Improve third-party controls

·         Increase management oversight

·         Improve employee awareness

·         Support compliance objectives

·         Strengthen stakeholder confidence

·         Protect organizational reputation

A structured approach to anti-bribery risk can also help manage business relationships for companies that have international customers and/or complex supply chains.

ISO 37001 is NOT just an Anti-Bribery Policy!

Risk of bribery cannot be eradicated by a policy.

There needs to be an understanding of the policy by the employees. Support from management is required. The requirements for third parties need to be appropriate. There are risks that need to be evaluated. Reports need to be taken seriously.

It is therefore dependent on implementation that ISO 37001 will be effective.

Makes an ethical culture

Organisational culture is the strongest support to the strongest anti-bribery systems.

It is important that employees realize that being ethical isn't preventing their business from being successful.

Rather, the long-term interests of the business are served through responsible business practices.

One of the most significant factors is the management's behaviour. Leaders who model ethical decision making are more likely to create rules that are followed by staff. When leaders behave ethically, they are more likely to get staff to do the same.

Conclusion

Organisations can use ISO 37001 to help them establish a structured framework to prevent and manage bribery risks. Organizations can create a more robust anti-bribery management system when they incorporate leadership commitment, risk assessment, due diligence, controls, employee awareness, reporting, monitoring and continual improvement. Nowadays, ethics plays a growing role in the maintenance of reputation, trust, sustainability and future growth in the business world. To show that the anti-bribery principles are embedded in the management processes, not as a separate policy, ISO 37001 can help organisations.