Despite the risk of substantial fines and corporate directors ending up in jail, most UK employers are in the dark about the scope of new anti-bribery legislation, which is due to come into force later this year.

According to a survey undertaken by law firm Eversheds among 694 managers and directors working in companies of all sizes, a huge 60% were unaware that failing to prevent bribery by employees or agents acting on behalf of the company would soon become a corporate criminal offence and could lead to substantial fines.

One in three were also ignorant of the fact that company directors could be found liable and face prosecution, while nine out of 10 did not know that the maximum jail sentence was 10 years.

Neill Blundell, the head of Eversheds’ fraud group, said: "Our survey found a real lack of awareness, understanding and training in relation to the Bribery Bill, and that many businesses aren’t set up to minimise their exposure to corrupt business practices."

This finding was reflected in the fact that a worrying one in five of those questioned admitted that they had no adequate systems in place to prevent bribery from occurring. The new legislation will mean that the introduction of 'adequate procedures' becomes mandatory, however.

"Fraud affects all sectors and businesses of all sizes. While companies will never be able to stop certain individuals from engaging in dishonest practices, they have to demonstrate that they are taking steps to stamp out bribery and corruption," said Blundell.

Such steps include introducing an anti-bribery policy, providing staff training and ensuring that purchasing decisions and sales activity are closely scrutinised. For example, if third-party sales agents use corrupt practices to win a contract on behalf of the business, the organisation hiring them could be held criminally liable for failing to prevent such activity taking place.

While nearly three quarters of respondents understood that the new law covered explicit forms of bribery such as accepting or giving illicit payments, few were aware that more discreet activities such as offering or receiving commercial entertainment or lavish gifts would become illegal.

But almost a third of those questioned believed that the new legislation went too far and was burdening businesses unnecessarily, particularly in today’s difficult financial climate.

Some 26% said that it would make the UK a more attractive place to do business, while 24% said it would make the country less appealing.