- Introduction
Lee Engineering & Construction Company values its reputation and is committed to maintaining the highest level of ethical standards in the conduct of its business affairs. The actions and conduct of the company’s staff as well as others acting on the company’s behalf are key to maintaining these standards.
The purpose of this document is to set out the company’s policy in relation to bribery and corruption. The policy applies strictly to all employees, directors, business partners, agents, consultants, contractors and to any other people or bodies associated with the Lee group of companies, within all regions, areas and functions.
- Understanding And Recognizing Bribery And Corruption
Acts of bribery or corruption are designed to influence an individual in the performance of their duty and incline them to act in a way that a reasonable person would consider to be dishonest in the circumstances.
Bribery can be defined as offering, promising or giving a financial (or other) advantage to another person with the intention of inducing or rewarding that person to act or for having acted in a way which a reasonable person would consider improper in the circumstances. Corruption is any form of abuse of entrusted power for private gain and may include, but is not limited to, bribery.
Bribes are not always a matter of handing over cash. Gifts, hospitality and entertainment can be bribes if they are intended to influence a decision.
- Penalties
In accordance with the Corrupt Practices and other Related Offences Act 2000 in the Laws of the Federation of Nigeria, it is a punishable offence for an individual or employee to be involved in bribery and corruption. Under that Act, bribery by individuals is punishable by up to ten years’ imprisonment and/or an unlimited fine. If the company is found to have taken part in the bribery or is found to lack adequate procedures to prevent bribery, it too could also face an unlimited fine.
A conviction for a bribery or corruption related offence would have severe reputational and/or financial consequences for the company.
- Due Diligence
To reduce the risk of problems under anti-corruption laws, the first and most critical step is to conduct and document an appropriate due diligence review of the background of potential agents, partners and investees before the business relationship is formed or the investment made. The inquiry should be especially probing if law or practical realities of the circumstances would make it difficult for the Company to sever the relationship or extract itself from the investment.
- Lee Engineering & Contruction Company’s Policy
Lee Engineering will not tolerate bribery or corruption in any form. The company prohibits the offering, giving, solicitation or the acceptance of any bribe or corrupt inducement, whether in cash or in any other form:
- to or from any person or company wherever located, whether a public official or public body, or a private person or company;
- by any individual employee, director, business partners, agent, consultant, contractor or other person or body acting on the company’s behalf;
- in order to gain any commercial, contractual, or regulatory advantage for the company in any way which is unethical or to gain any personal advantage, pecuniary or otherwise, for the individual or anyone connected with the individual.
This policy is not intended to prohibit the following practices provided they are appropriate, proportionate and are properly recorded:
- normal hospitality, provided that it complies with the company’s Corporate Entertainment Policy;
- fast tracking a process which is available to all on the payment of a fee; and/or
- providing resources to assist a person or body to make a decision more efficiently, provided that it is for this purpose only.
It may not always be a simple matter to determine whether a possible course of action is appropriate. If you are in any doubt as to whether a possible act might be in breach of this policy or the law, the matter should be referred to your Head of Department. If necessary, guidance should also be sought from the Group Legal and Compliance Director or the Director, Head of Legal.
The company will investigate thoroughly any actual or suspected breach of this policy, or the spirit of this policy. Employees found to be in breach of this policy may be subject to disciplinary action which may ultimately result in their dismissal.
- Key Risk Areas
Bribery can be a risk in many areas of the company. Below are the key areas you should be aware of in particular:
Excessive gifts, entertainment and hospitality: can be used to exert improper influence on decision makers. Gifts, entertainment and hospitality are acceptable provided they fall within the firm’s Corporate Entertainment Policy.
Facilitation payments: are used by businesses or individuals to secure or expedite the performance of a routine or necessary action to which the payer has an entitlement as of right. The firm will not tolerate or excuse such payments being made.
Reciprocal agreements: or any other form are never acceptable unless they are legitimate business arrangements which are properly documented and approved by management. Improper payments to obtain new business, retain existing business or secure any improper advantage should never be accepted or made.
Actions by third parties for which the company may be held responsible: can include a range of people i.e. agents, contractors and consultants, acting on the firm’s behalf. Appropriate due diligence should be undertaken before a third party is engaged. Third parties should only be engaged where there is a clear business rationale for doing so, with an appropriate contract. Any payments to third parties should be properly authorized and recorded.
Record keeping: can be exploited to conceal bribes or corrupt practices. We must ensure that we have robust controls in place so that our records are accurate and transparent.
- Employee Responsibility and How to Raise a Concern
The prevention, detection and reporting of bribery or corruption is the responsibility of all employees throughout the company. If you become aware or suspect that an activity or conduct which is proposed or has taken place is a bribe or corrupt, then you have a duty to report this.
- Audits
Audits performed by our internal and external auditors help ensure compliance with established policies, procedures and controls. Audits also help identify potential weaknesses so they may be remediated promptly. All of us are required to cooperate fully with internal and external audits. This means always providing clear and truthful information and cooperating fully during the audit process.
- Fraud
Engaging in any scheme to defraud anyone — of money, property or honest services — violates Company policy and the law and carries severe penalties. Those consequences apply to any dishonest or fraudulent activities, including misusing or stealing Company assets or falsifying a travel and entertainment expense report, among other violations. The Company relies on its internal controls and the personal integrity of all its employees, contractors and directors to protect Company assets against damage, theft and other unauthorized use.
- Compliance
Each of us must comply with this Code and with all Company policies. If we fail to do so, we may face disciplinary action, possibly including termination. Likewise, any supervisor, manager, officer or director who is aware of any violation and does not promptly report and correct it may be subject to similar consequences.
- Antitrust/Competition Laws
Agreements and Contacts with Competitors
We must be very careful when we have any contact with our competitors. Antitrust laws prohibit any agreements with competitors that might “restrain trade”. We do not want to even create the appearance that we have entered into any such agreement. Even communications with competitors that feel completely innocent might give rise to accusations. Exchanging any information with a competitor can also give rise to concerns, and it is best to get advice from your Lee’s management before you do so. For this reason, membership in trade associations must be approved by management in advance.
- Protection of Information and Intellectual Property
Handling Sensitive or Proprietary Information
We all must be cautious and discreet when using information categorized as “classified” or “confidential-restricted access.” Such information should be shared only with other Lee employees who have a legitimate “need to know.” Outside parties should have access to such information only if they are under binding confidentiality agreements and have a “need to know.” Similarly, when handling sensitive information that has been entrusted to us by others, we must always treat it with the utmost care. Doing so can protect us from potential liability and is also in keeping with our values of Partnership and Trust.
Closing Note
Lee Engineering’s legal and ethical obligations go far beyond what is included in this Code of Conduct. We must comply with both the letter and the spirit of the many laws and regulations that affect our business.
If questions arise about any matter of compliance or ethics, whether covered by this Code or not, we should consult our supervisor, manager, Corporate Compliance or Lee Engineering’s legal counsel or call the Lee Engineering’s Hotline if our concerns are not properly addressed. The Company’s Manual of Compliance Procedures and Guidelines is also a valuable resource for guidance on many compliance issues.
The responsibility for meeting our legal and ethical obligations cannot, however, be fully defined or guaranteed by any set of written rules. There will almost certainly be times when the best course of action can only be recognized by ensuring our actions are consistent with our Company’s values and ethics. Driven by a passion for excellence in everything we do, we strive to achieve High Performance and results the right way – according to the ethical principles in our Code and in a manner consistent with our values.
In the end, our confidence must rest, as it always has, on the honesty, integrity and good sense within each of us.