Anti-Corruption

What is corruption?

Corruption does not have a uniform definition, nor is it mentioned in Swedish legislation. However, many entities refer to the definition developed by the international anti-corruption organization Transparency International. According to this definition, corruption is the abuse of entrusted power for private gain. This means that corruption includes more actions than just bribery. Examples of such actions are nepotism, favoritism of private contacts in hiring and procurement, and misuse of company funds.

As a result of the lack of a uniform definition, each organization must clarify both the concept of corruption and the corrupt actions that may occur within the organization. This forms the starting point for developing a risk analysis and a strategy to manage identified risks (an anti-corruption program).

What legal requirements exist?

In Sweden, the relevant rules are primarily found in the Penal Code. These are in Chapter 10 and can be summarized as follows:

• An employee or contractor who receives, accepts a promise of, or requests an undue benefit for the performance of their employment or assignment may be guilty of taking a bribe (Chapter 10, Section 5a).

• A person who gives, promises, or offers an undue benefit to an employee or contractor for the performance of their duties or assignment may be guilty of giving a bribe (Chapter 10, Section 5b).

• A person who gives, promises, or offers an undue benefit, or receives, accepts a promise of, or requests an undue benefit to influence another's decision in public authority or public procurement may be guilty of trading in influence (Chapter 10, Section 5d).

• A business operator who provides money or other assets to someone representing the business in a particular matter and thereby through gross negligence promotes a bribery offense may be guilty of negligent financing of bribery (Chapter 10, Section 5e).

The offense of breach of trust (Chapter 10, Section 5) is also a form of corruption offense.

Criminal liability is personal, but companies can be fined. This can occur if the offense was committed by a person in a leading position or with special responsibility for supervision or control in the business. Additionally, a company may be fined if it has not taken sufficient measures to prevent the offense. Therefore, in some cases, an anti-corruption program is required to avoid corporate fines.

Beyond Swedish legislation, many companies are subject to international anti-bribery laws. Several international laws have extraterritorial effect, meaning they apply outside the home country and to foreign companies under certain conditions. Among the most important international laws to consider are the U.S. Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and the French Sapin II. These laws also require companies to establish anti-corruption programs to avoid liability or reduce fines ("failure-to-prevent" is penalized). The French legislation goes furthest in this regard, requiring certain companies to establish an anti-corruption program, with sanctions if such a program is lacking. Sanctions can be imposed even if no corruption violation has occurred.

Self-regulation against corruption

In addition to legal requirements, extensive self-regulation has been developed to combat corruption. Notable among these are the International Chamber of Commerce's (ICC) anti-corruption rules and the Swedish Anti-Corruption Institute's Code on Business Conduct (the Business Code). These complement legal provisions and following them creates good conditions for building a resilient organization against corruption. Additionally, there are industry-specific self-regulations against corruption. In Sweden, for example, agreements against corruption have been developed within the publicly funded construction and real estate sector, as well as in healthcare, elder care, and personal assistance. Internationally, there are also industry-specific self-regulations, such as in the maritime sector.