When does gift giving or corporate
hospitality become bribery?
Presenters from: Institute of Business Ethics,
Norton Rose LLP and EADS
March 10th 2011
Welcome and introductions
•
Paul Rew
European Counsel
•
Pedro Montoya
Global Chief Compliance Officer EADS
•
Philippa Foster-Back
Director, Institute of Business Ethics
•
Sam Eastwood
Partner
Introduction
The UK Bribery Act – Gifts & Hospitality
The MOJ guidance states hospitality should be 'reasonable and proportionate‘
which to some organisations is far too vague and highly subjective. However with
the increased consequences for breaching the Act, it is crucial organisations set
clear policies for gifts and hospitality, leaving no doubt in the minds of their
employees how they should conduct business.
This webcast will discuss the following topics:
•
•
•
•
The legal background
Gift giving & receiving – The challenges
Hospitality and Entertainment - Where do organisations draw the line? what
is excessive and what’s reasonable?
Practical steps companies can take to ensure they don’t fall foul of the UK
Bribery Act
Gifts & hospitality - The legal background
•
•
The UK Bribery Act – the current state of play
The MOJ guidance
–
–
•
How it relates to gifts & hospitality
Implications for businesses
How the FCPA currently addresses gifts &
hospitality
Gift giving & receiving – the challenges
•
Opposing cultural values create problems
•
Striking the balance between managing risk with
maintaining business relationships
•
When is a gift not a gift? – defining what is
acceptable both legally and ethically
•
Setting of financial limits – help or hindrance?
Safe guarding your organisation
•
Adequate procedures – gifts and hospitality
–
–
–
–
–
–
Policies & procedures
Risk analysis
Due diligence
Top level commitment
Effective communication of your policy
Monitoring & reporting
Practical steps to deal with gifts & hospitality
•
EADS
–
–
–
- How we address gifts & hospitality
Monetary thresholds set & adapted by country
Importance of
• The ‘nature of the gift’
• The timing of the gift
• The recipient of the gift – decision maker
Decision making principles -3 point test
• Reasonable
• Socially acceptable
• Intention to influence
Practical steps to deal with gifts & hospitality
•
Making your corporate hospitality policy effective
–
–
–
Training - decision making principles
Recording of gifts & entertainment
Good clear policies
Polling question results
Q1: Does your organisation set monetary thresholds for gifts and hospitality?
No - we don't set thresholds
29%
Yes - our thresholds differ by the position held by
the recipient and country
8%
Yes - our thresholds differ by the position held by
the recipient
8%
Yes - our thresholds differ by country
23%
Yes -our thresholds are the same for all
33%
0%
5%
10%
15%
20%
percentage
25%
30%
35%
Polling question results
Q2: Does your organisation have a central gifts register in place?
No- but plans to
implement within the
next 3-6months
38%
No
17%
Yes - but not central
17%
Yes
28%
0%
5%
10%
15%
20%
percentage
25%
30%
35%
40%
Polling question results
Q3:In light of the Bribery Act, which of the following anti-bribery suggestions are you
likely to implement in the next 3-6months?
Educate Board and sr management on the
importance of the new law
15%
Conduct an anti-bribery risk assessment
17%
Review related corporate policies
18%
Begin to develop a due Diligence programme for
third parties
11%
Begin awareness education
22%
Create a plan to close identified gaps
17%
0%
5%
10%
15%
percentage
20%
25%
Polling question results
Q3: Does your organisation set monetary thresholds for gifts and hospitality?
No - we don't set thresholds
29%
Yes - our thresholds differ by the position held by
the recipient and country
8%
Yes - our thresholds differ by the position held by
the recipient
8%
Yes - our thresholds differ by country
23%
Yes -our thresholds are the same for all
33%
0%
5%
10%
15%
20%
percentage
25%
30%
35%
Polling question results
Q4: SAI Global plan to host more anti-bribery focused webcasts, which of the
following topics would you like to hear us discuss?
Implementing an
effective hotline & case
management system
9%
Risk Assessment
38%
Third Party Due
Diligence
54%
0%
10%
20%
30%
percentage
40%
50%
60%
Questions & Answers
Session
A follow up document will be produced in conjunction with our
panel which will aim to incorporate the answers to the
questions posed during this webcast
For more information
Write to us: info.emea@saiglobal.com
Visit: www.saiglobal.com/compliance