Guidance on the Bribery Act 2010

There has been some concern over the effect on the Promotional Merchandise industry of the new Bribery Act, which came into force on the 1st July. The Act puts the onus on businesses to prevent bribery by introducing a new strict liability corporate criminal offence and, if convicted, individuals and organisations face hefty penalties.

A key concern for companies is defining what constitutes a bribe – what about corporate hospitality or corporate business gifts, for instance? This confusion was one of the reasons The Act was delayed – it was due to come into force in April.

In an effort to clear up some of the confusion surrounding the Act, the Ministry of Justice (MoJ) issued The Bribery Act 2010 guidance earlier this year.

In relation to the Promotional industry, the guidance for the Act states:

Hospitality, promotional, and other business expenditure
26) Bona fide hospitality and promotional, or other business expenditure which seeks to improve the image of a commercial organisation, better to present products and services, or establish cordial relations, is recognised as an established and important part of doing business and it is not the intention of the Act to criminalise such behaviour. The Government does not intend for the Act to prohibit reasonable and proportionate hospitality and promotional or other similar business expenditure intended for these purposes. It is, however, clear that hospitality and promotional or other similar business expenditure can be employed as bribes.

Director of public affairs at the Direct Marketing Association (DMA) Caroline Roberts says: “Companies now face the real prospect of fines if they transgress the new Bribery Act so it’s important that they ensure all their staff know exactly where the line is drawn between corporate hospitality and what could be construed as bribery. For this companies need to have a clear anti-bribery policy in place regarding what is appropriate business conduct and what isn’t.”

To view the Bribery Act 2010 Guidance information, click here.

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