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 ...
As you and your business navigate the festive season, a thorough understanding of the Bribery Act is essential!
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 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 instil 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!"
So that's it for 2024. Essendon will be closed from Friday the 20th until Thursday the 2nd of 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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the Bribery Act, it could be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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