Nearly three-quarters of business owners are uncertain about what the Bribery Act means and how it will affect the way they operate.

UK businesses came under the remit of the long-awaited Act – described as “the toughest anti-corruption legislation in the world” – on 1 July. But research from business software and services provider Sage reveals that 71% of small businesses do not understand what the Act is.

The penalties for committing a crime under the Act are a maximum of ten years' imprisonment, along with an unlimited fine for individuals successfully prosecuted under the Act. Organisations can receive an unlimited fine. There is also the potential for the confiscation of property.

However, a Sage UK Omnibus survey of 1,050 small and medium sized enterprises revealed that, while 33% knew the Act was coming into force, most were uncertain as to how they should adapt to it, with 50% indicating that they would simply operate as usual.

Samantha Bell, a HR adviser at Sage UK, said: “If your business could be susceptible to potential acts of bribery, you should carry out a risk assessment and put strict policies and procedures in place to eliminate any doubt. The key thing is to be in a position where you can show you have taken adequate steps to prevent acts of bribery from taking place. If a bribery claim is made against you, doing this can make a real difference to your defence.

She reminds businesses that corporate hospitality isn’t necessarily affected by the Act, as long as it is proportionate and reasonable, adding, “If you are in any doubt, just think ‘Is this reasonable and proportionate?’ That is the golden rule.”