It has been 6 months now since the Bribery Act 2010 came into force and it appears that a number of companies are still unclear how it affects their entertaining requirements.
It is not intended to stop companies from entertaining their clients in a reasonable manner at traditional events. If it was the hospitality industry would be in serious trouble. Kenneth Clarke clarified the situation in a statement which you can read below.
“ In its guide to the Bribery Act, the Ministry of Justice says: “Very generally, [bribery] is defined as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so.”
In March Justice Secretary Kenneth Clarke assured companies the act would be implemented in a “workable, common sense” way.
He has since assured companies that they can take clients to events such as Wimbledon and the Grand Prix, so long as the hospitality is reasonable and proportionate.
The government said it did not expect “genuine hospitality” or similar expenditure to fall under the act.
Companies prosecuted under the act must show they have “adequate procedures” in place to stop bribes.
“Adequate procedures” may include providing anti-bribery training to staff, carrying out risk assessments for the markets being operated in, or carrying out due diligence on the people being dealt with.”
Reference: www.bbc.co.uk/news 1st July 2011. Read the full article here.
If you have any questions about how the ACT may affect your hosting then please give is a call and we will be happy to help guide you.
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