when does gift giving or corporate hospitality become bribery? presenters from: institute of...
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When does gift giving or corporate hospitality become bribery?
Presenters from: Institute of Business Ethics,
Norton Rose LLP and EADS
March 10th 2011
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Welcome and introductions
• Paul RewEuropean Counsel
• Pedro Montoya Global Chief Compliance Officer EADS
• Philippa Foster-Back
Director, Institute of Business Ethics
• Sam Eastwood Partner
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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 withthe 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
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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
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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?
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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
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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
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Practical steps to deal with gifts & hospitality
• Making your corporate hospitality policy effective
– Training - decision making principles
– Recording of gifts & entertainment
– Good clear policies
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Polling question results
Q1: Does your organisation set monetary thresholds for gifts and hospitality?
33%
23%
8%
8%
29%
0% 5% 10% 15% 20% 25% 30% 35%
Yes -our thresholds are the same for all
Yes - our thresholds differ by country
Yes - our thresholds differ by the position held bythe recipient
Yes - our thresholds differ by the position held bythe recipient and country
No - we don't set thresholds
percentage
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Polling question results
Q2: Does your organisation have a central gifts register in place?
28%
17%
17%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Yes
Yes - but not central
No
No- but plans toimplement within the
next 3-6months
percentage
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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?
17%
22%
11%
18%
17%
15%
0% 5% 10% 15% 20% 25%
Create a plan to close identified gaps
Begin awareness education
Begin to develop a due Diligence programme forthird parties
Review related corporate policies
Conduct an anti-bribery risk assessment
Educate Board and sr management on theimportance of the new law
percentage
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Polling question results
Q3: Does your organisation set monetary thresholds for gifts and hospitality?
33%
23%
8%
8%
29%
0% 5% 10% 15% 20% 25% 30% 35%
Yes -our thresholds are the same for all
Yes - our thresholds differ by country
Yes - our thresholds differ by the position held bythe recipient
Yes - our thresholds differ by the position held bythe recipient and country
No - we don't set thresholds
percentage
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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?
54%
38%
9%
0% 10% 20% 30% 40% 50% 60%
Third Party DueDiligence
Risk Assessment
Implementing aneffective hotline & casemanagement system
percentage
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Questions & AnswersSession
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 informationWrite to us: [email protected]: www.saiglobal.com/compliance