Fine line between hospitality and perceived bribery warns Telford solicitor

July 11, 2012 - PRLog -- Telford, Shropshire, UK: 2012 has been a big year for the UK, with many spectacular events for the Queen’s Diamond Jubilee having already taken place, the Olympic Torch relay still ongoing, and the Olympic and Paralympic Games themselves yet to come. Despite the wet weather the summer is packed with corporate entertainment opportunities – such as recently finished Wimbledon and the Proms Concerts. With so many exciting events going on, Shropshire companies could be forgiven for wanting to pull out all the stops to impress their clients.

However, a leading Shropshire solicitor has warned that companies must try to curb their enthusiasm or they could risk falling foul of bribery legislation. Graham Davies, senior partner at Martin Kaye LLP Solicitors in Telfor, has warned corporate hospitality must be set at a “reasonable” level, or it may be contrary to the Bribery Act 2010.

“In a survey, over half the business managers interviewed thought that spending £100 per person on corporate hospitality was lavish. And the more lavish a business gift or hospitality, the more likely it is to be considered contrary to the Act. But of course, £100 per head doesn’t go far in today’s world, particularly if you’re buying tickets for major sporting events.”

Graham said the Act was not designed to prohibit business entertainment altogether, but at the same time, it didn’t set out what acceptable limits may be. “It just says that the amount you spend must be proportionate and reasonable based on the business that you do. But setting a low limit on hospitality expenses and so thinking the Act won’t apply isn’t the answer either. By doing this, you’ll find it difficult to prove that you took adequate steps to prevent bribery if anyone should accuse your company.”

Graham said that the solution is for companies to set out a strong anti-bribery policy and have clear guidelines on how corporate hospitality should work in their organisation. “Set out your rules on any hospitality that’s given or received, and decide on the level of costs that must be pre-approved in advance by a director before an event goes ahead, or ask that all corporate hospitality is signed off before it actually happens or is accepted by your staff. This way someone in a senior position will be aware of everything that’s going on so they can question anything that looks like it may be against the rules – it’s also a good way of checking just how much is spent on business entertainment.”

To find out more about Martin Kaye solicitors, visit their website http://www.martinkaye.co.uk/