What could help a company avoid liability for bribery?

Implementing adequate procedures to mitigate risk is essential for a company aiming to avoid liability for bribery. These procedures can include robust compliance and ethics programs that specifically address the risk factors associated with bribery. By establishing clear guidelines, training employees on acceptable behaviors, ensuring there are proper reporting mechanisms in place, and conducting regular audits, the company demonstrates a commitment to anti-bribery practices.

Such measures not only help to create a culture of integrity within the organization but also provide evidence of due diligence should a bribery allegation arise. Having documented policies and procedures in place conveys that the company has taken proactive steps to prevent bribery, thereby reducing its liability.

In contrast, having no policies in place would create an environment ripe for misconduct, and allowing employees to use personal judgment could lead to inconsistent and potentially risky decision-making. While encouraging competitive bidding might promote fairness in procurement processes, it doesn't directly address the specific risk of bribery and would not be as effective as a comprehensive set of procedures designed to mitigate that risk.