ICANBusiness, Management and FinanceBusiness Ethics and Corporate Social Responsibility2023

Adeola Enterprises Limited, a medium-sized company registered under CAMA 2020, discovers that its procurement manager has been accepting kickbacks from suppliers totalling ₦4,500,000 over two years. Under the Corrupt Practices and Other Related Offences Act 2000, which of the following statements is MOST accurate regarding the company's ethical and legal obligations?

AThe company has no legal obligation to report the matter since it is an internal disciplinary issue
BThe company must report the matter to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and may itself face liability if it conceals the offenceCORRECT
COnly the procurement manager bears legal liability; the company is shielded by the doctrine of separate legal personality under CAMA 2020
DThe company's only obligation is to terminate the employee and recover the ₦4,500,000
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
The Corrupt Practices and Other Related Offences Act 2000 imposes a duty to report corrupt acts to the ICPC, and concealment of corruption can attract corporate liability. Separate legal personality under CAMA 2020 does not shield a company from criminal liability for corruption offences. Merely terminating the employee and recovering funds without reporting does not fulfil the statutory obligation, and the company could be prosecuted for concealment.
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