Bribery Act: Ensuring Compliance Amid Holiday Generosity

While it is commendable for companies to acknowledge their clients' support throughout the year, they must ensure that their generosity doesn’t unintentionally flout the provisions of the Bribery Act 2010 ...

You may think that bribes are reserved for corporations, the public sector and government departments, exchanged by lobbyists in trenchcoats and trilby hats, but it does occur in smaller businesses and this e legislation seeks to prevent corruption and maintain fair practices.

At its core, the Bribery Act prohibits any "financial or other advantage offered with the intention of influencing the recipient in their role", thereby ensuring that businesses maintain ethical relationships.

So, how can companies show their appreciation without crossing the line into bribery? Firstly, it's essential to affirm that gifts made in genuine appreciation are not inherently dismissible under the Bribery Act. If the intent behind a gift is not to induce or reward improper performance, then businesses generally remain within the legal boundaries.

You may be surprised to know that the Bribery Act can cover something as simple as a bottle of wine, though the act is clear that gifts intended to foster goodwill can be permissible provided they are proportionate to the relationship and the business context.

I would encourage you to adopt certain principles in line with the Bribery Act to mitigate risks associated with gifting during the festive season. It sounds bizarre when I say that businesses should engage in risk assessments to identify potential bribery vulnerabilities that could arise from gifting during the holidays.

And awareness of bribery needs to come from the top as the business owners and managers must instill the company's values in their teams. This awareness is vital, particularly as different employees may have varying interpretations of what constitutes an acceptable gift.

Due diligence is a must to ensure gift-giving is not misinterpreted. Rather than risking accusations of impropriety, you may find it beneficial to maintain clear records of what is gifted, thereby demonstrating compliance and good intentions.

"As you and your business navigate the festive season, a thorough understanding of the Bribery Act is essential!"

Essendon will be closed from Friday the 20th until the 2nd January 2025, so from myself and everyone at Essendon Accounts & Tax, I wish you and yours a very Merry Christmas and a happy New Year.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.