Introduction
As Malaysia’s business environment continues to evolve, there’s an increasing focus on sustainability, ethics, and corporate governance. One crucial area for businesses to address is compliance with anti-bribery regulations, especially with the release of the new ISO 37001:2025 Anti-Bribery Management System standard. This updated version introduces significant changes that Malaysian SMEs and business owners must consider in order to remain compliant, future-proof their operations, and strengthen their brand reputation.
Understanding ISO 37001:2025
ISO 37001:2025 is the latest edition of the global standard for Anti-Bribery Management Systems (ABMS), replacing the previous 2016 version. It is designed to help organizations establish, implement, maintain, and improve an anti-bribery management system. The standard provides a framework for preventing, detecting, and addressing bribery, ensuring that businesses operate ethically and transparently.
This updated version of ISO 37001 introduces groundbreaking changes that align with modern business challenges, including the need to respond to environmental issues and the evolving expectations of stakeholders. These updates are critical for businesses that aim to be at the forefront of ethical and responsible practices.
Key Changes in ISO 37001:2025
The new version of ISO 37001 comes with several key changes that address modern operational, ethical, and environmental demands. Understanding these updates is vital for Malaysian SMEs to stay compliant and competitive in the market.
1. Climate Action Integration: A First in Anti-Bribery Standards
For the first time ever, an anti-bribery standard has integrated climate action. ISO 37001:2025 now requires organizations to assess the impact of climate change on their operations and address the climate-related expectations of stakeholders. This change reflects the growing importance of sustainability in business operations and the pressure companies face to be environmentally responsible.
Businesses are expected to not only comply with anti-bribery measures but also consider how their actions impact the environment. As global stakeholders, investors, and consumers increasingly value sustainability, aligning anti-bribery efforts with climate action will be key to staying ahead of the curve.
2. Strengthened Compliance Culture
ISO 37001:2025 places greater emphasis on building a robust compliance culture within organizations. This includes fostering ethical behavior, promoting transparency, and holding everyone in the organization accountable for their actions. The update stresses the importance of creating a corporate environment where ethical practices are embedded into the decision-making process at all levels of the business.
For Malaysian SMEs, this change will require rethinking how business operations and relationships are managed. Business owners will need to ensure that their anti-bribery policies are not only clear but are deeply ingrained within the company’s culture. This might involve regular training, a stronger focus on ethical leadership, and consistent reinforcement of compliance expectations across all departments.
3. Clearer Conflict of Interest Management
Conflicts of interest have always been a critical issue when it comes to preventing bribery, but the new ISO 37001:2025 provides clearer guidelines on how to identify and manage them. Businesses are now required to establish procedures for identifying, assessing, and addressing conflicts of interest that could compromise integrity or lead to bribery.
SMEs in Malaysia should pay close attention to this update. This may involve establishing internal processes to detect potential conflicts and developing policies to mitigate risks. For example, this could include implementing proper vetting procedures when hiring, partnering with other organizations, or selecting suppliers.
4. Anti-Bribery Function Clarity
The new version of ISO 37001:2025 clarifies the roles and responsibilities of the anti-bribery function within an organization. There are more specific guidelines on the roles of anti-bribery teams, helping organizations to streamline the implementation and management of their anti-bribery systems.
For SMEs, this means creating clear lines of accountability for anti-bribery efforts within the organization. Ensuring that there are designated personnel or teams responsible for managing the anti-bribery system and its integration across operations will be critical for compliance. This could involve appointing an Anti-Bribery Officer (ABO) or creating a dedicated compliance team to handle these issues.
5. Harmonization with Other ISO Standards
ISO 37001:2025 has been designed to align more seamlessly with other ISO management systems, such as ISO 9001 (Quality Management) and ISO 14001 (Environmental Management). This integration allows businesses to streamline their processes and ensures that different management systems work in harmony, reducing administrative burdens and enhancing operational efficiency.
For Malaysian SMEs that are already certified in other ISO standards, this harmonization will simplify the process of integrating anti-bribery management into their broader organizational strategy. Businesses can more easily implement ISO 37001:2025 alongside their existing systems, ensuring they meet multiple compliance requirements without creating redundant processes.
Transition Deadlines and Requirements for Malaysian SMEs
The transition to ISO 37001:2025 requires careful planning and immediate action to ensure compliance with the updated standard. The following timeline outlines the critical steps businesses need to take:
1. Immediate Action for 2024 Amendments
In February 2024, ISO 37001 underwent an important amendment that mandates the integration of climate action considerations into anti-bribery systems. This amendment required organizations to immediately start addressing climate-related issues in their anti-bribery efforts, with no transition period provided. Malaysian SMEs that are already certified to ISO 37001 must ensure that their systems are updated to comply with these amendments without delay.
2. Prepare for ISO 37001:2025
The full transition to ISO 37001:2025 will take effect in February 2025. All businesses that are currently certified under the ISO 37001:2016 version must begin preparing for this transition. While exact timelines for the transition process are still pending, it is crucial to act now to avoid lapsing certification.
By aligning with the updated standard, businesses can avoid penalties for non-compliance, protect their brand from reputational risks, and strengthen stakeholder trust. It is also an opportunity to future-proof your business, aligning with the growing trend toward sustainability (Environmental, Social, and Governance – ESG) and ethical business practices.
Why Malaysian SMEs Should Act Now
1. Avoid Non-Compliance Penalties
With the introduction of ISO 37001:2025, regulators are increasing their scrutiny on businesses that fail to meet updated anti-bribery standards. Non-compliance could lead to legal and financial penalties, along with damage to a company’s reputation. Early adoption of the new standard will ensure businesses remain on the right side of the law.
2. Future-Proof Your Business
The changes introduced in ISO 37001:2025 align with broader trends in sustainability, corporate governance, and ethical business practices. By adhering to these updated standards, Malaysian SMEs can enhance their competitiveness in a market where consumers, investors, and stakeholders are increasingly focused on responsible business practices.
3. Build Stakeholder Trust
In an era where corporate integrity and transparency are paramount, ISO 37001:2025 certification is a powerful tool to build trust with customers, investors, regulators, and other stakeholders. By demonstrating leadership in anti-bribery and climate responsibility, businesses can differentiate themselves as ethical leaders in their respective industries.
Conclusion
The release of ISO 37001:2025 presents a unique opportunity for Malaysian SMEs to strengthen their anti-bribery management systems, embrace sustainability, and align with the latest global standards. While the updated version introduces new challenges, it also provides businesses with a clear path toward improving operational integrity, enhancing stakeholder trust, and safeguarding long-term success. Business owners should act now to stay compliant, meet the updated requirements, and position their organizations for future growth in a responsible, ethical manner.
