What management companies should do

Management companies exist, in large part, to protect owners and captains from exactly this problem. Most have an anti-bribery policy. The question is whether it works.

Five tests of a policy that works

1. Do people understand it? Not "have they signed it", but could a deckhand, a purser and a captain each say, in their own words, what they may not accept and who they tell?
2. Is there a way to raise a concern? A named route, outside the line manager, that people trust and that does not punish them.
3. Is spend ever checked? Spot audits of APA and purchasing, comparing invoices to quotations and to market prices.
4. Are suppliers asked? Suppliers should provide their written anti-bribery policy, and confirm that nothing is paid for orders without the client's knowledge.
5. Does it ever bite? A policy that has never led to a conversation, a warning or a change has not yet been tested.

What to put in place

• Pre-approval of purchases above a threshold, by the captain and, above a higher one, by the management company or owner.
• A supplier declaration from every approved supplier (there is a template).
• A gifts and incentives register on every yacht, reviewed periodically (see the template).
• Annual training that tests understanding, with real examples from yachting.
• A protected reporting route for captains and crew, and a promise, kept, of no retaliation.
• Regular reviews of the APA, by someone who did not spend it.

Captains need your support

A captain is responsible for APA spend and can be blamed if undisclosed commissions are discovered. Give them the tools and the written guidance to protect themselves, and a route to escalate when a broker or owner's representative puts them in a difficult position. A captain who can say "this is our written policy" is far harder to pressure.

Your own exposure

In many countries, a company that fails to prevent bribery by those acting for it can itself be liable, and a policy that existed but was never applied is no defence. It can be evidence that the risk was known. See the law pages for the position in each country.

General information, not legal advice. See the disclaimer.