The Corporate 'Failure to Prevent' Principle in the UK Bribery Act 2010: Philosophical Foundations of Economic Crime.

This article discusses the new corporate offence of corporate 'failure to prevent' bribery found in section 7(1) of the UK Bribery Act 2010 and the nature of consequential corporate liability. It discusses the nature of corporate vicarious liability, strict liability, and the identification doctrine and identifies the philosophical foundations of the principle of corporate failure to prevent bribery. The philosophical foundation of corporate liability emanating from the principle of the corporate offence is not based on the principles of corporate vicarious liability, strict liability or the identification doctrine. Liability attaches directly to the corporation because the rationale behind the legislation is to eliminate the culture of corporate bribery both domestically and extra-territorially. Section 7(2) affords a corporation a legal defence against its failure to prevent bribery if it can demonstrate that it had implemented adequate procedures to prevent individuals associated with it from undertaking such behaviour. [ABSTRACT FROM AUTHOR]