The Act applies to all UK incorporated companies and those
overseas companies who conduct an element of their business within
the UK. As a reminder, it prohibits the provision of any financial
or other advantages with the intention of influencing the recipient
to act improperly rather than in good faith and on an impartial
basis, including inducing customers to enter into contracts or
encouraging officials to act improperly in the performance of their
functions.
The UK government clearly supports bona fide hospitality by
businesses seeking to improve their commercial image, promote
products and establish mutual relations; however the more lavish
these shows of hospitality become, the more likely it is that this
could be viewed as a potential bribe - even where the entertainment
has been provided with the company’s best
intentions.
For those companies looking to make the most of what may be a once
in a lifetime opportunity, provided that any entertainment is
reasonable, proportionate to the monetary resources of the provider
and the business relationship and the appropriate policies and
procedures are in place, there is no reason why the Olympics
can’t be used to assist a business to prepare for its
future and create its own lasting Olympic legacy.
We recommend that clients develop policies and processes to record
entertainment and marketing activity to ensure they do not fall
foul of the legislation. Working with our employment colleagues, we
are able to advise on what is most appropriate and to put our
general experience into the context of specific client
businesses.
This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this document.