Corporate responsibility to combat corruption

About CSR

Guidelines and initiatives

Tools

 All forms of corruption are prohibited under Norwegian law. This prohibition also applies fully to Norwegian nationals and persons domiciled in Norway who are involved in activities abroad. Norwegian courts base their rulings on Norwegian law, even when business has been conducted abroad.

Facilitation payments, i.e. payments for services to which one is already entitled without paying an extra fee, are also considered to be corruption. The key concept in the legislation is that of “improper advantage”. 

Norwegian companies may also incur criminal liability under foreign legislation. Companies therefore have to observe both local and Norwegian laws. The Norwegian Penal Code includes three sections that are particularly important in the fight against corruption. These are: section 276a, on corruption; section 276b, on gross corruption; and section 276c, on trading in influence.  Those convicted of corruption face up to three years’ imprisonment, while the penalty for gross corruption is imprisonment for up to 10 years. Aiding and abetting carries the same penalty.

According to the amendments of 1 March 2008 to the Act relating to compensation, corruption also incurs liability for damages. If an employer is to avoid liability for damages caused by an employee’s corrupt behaviour, the employer must have taken all reasonable precautions in order to prevent corruption of this kind from occurring.

A growing number of other countries are tightening their legislation on corruption, partly as a result of the UN Convention against Corruption, the Council of Europe Criminal Law Convention on Corruption, and the OECD Anti-Bribery Convention.

For Norwegian companies operating in an international market, this means that they will encounter legislation that is equivalent to Norwegian legislation in an increasing number of other countries. This will help to give the private sector more equal conditions of competition.

Most major Norwegian companies with operations abroad have developed their own internal guidelines and routines for combating corruption. There are also guidelines that can be used by small and medium-sized enterprises. The challenge is to implement and follow up these guidelines in practice.