When does gift giving or corporate hospitality become bribery?

Presenters from: Institute of Business Ethics,

Norton Rose LLP and EADS

March 10th 2011

Welcome and introductions

• Paul RewEuropean Counsel

• Pedro Montoya Global Chief Compliance Officer EADS

• Philippa Foster-Back

Director, Institute of Business Ethics

• Sam Eastwood Partner

Introduction

The UK Bribery Act – Gifts & Hospitality

The MOJ guidance states hospitality should be 'reasonable and proportionate‘which to some organisations is far too vague and highly subjective. However withthe increased consequences for breaching the Act, it is crucial organisations set clear policies for gifts and hospitality, leaving no doubt in the minds of their employees how they should conduct business.

This webcast will discuss the following topics:

• The legal background• Gift giving & receiving – The challenges• Hospitality and Entertainment - Where do organisations draw the line? what

is excessive and what’s reasonable?• Practical steps companies can take to ensure they don’t fall foul of the UK

Bribery Act

Gifts & hospitality - The legal background

• The UK Bribery Act – the current state of play• The MOJ guidance

– How it relates to gifts & hospitality

– Implications for businesses

• How the FCPA currently addresses gifts & hospitality

Gift giving & receiving – the challenges

• Opposing cultural values create problems

• Striking the balance between managing risk with maintaining business relationships

• When is a gift not a gift? – defining what is acceptable both legally and ethically

• Setting of financial limits – help or hindrance?

Safe guarding your organisation

• Adequate procedures – gifts and hospitality– Policies & procedures

– Risk analysis

– Due diligence

– Top level commitment

– Effective communication of your policy

– Monitoring & reporting

Practical steps to deal with gifts & hospitality

• EADS - How we address gifts & hospitality

– Monetary thresholds set & adapted by country– Importance of

• The ‘nature of the gift’• The timing of the gift • The recipient of the gift – decision maker

– Decision making principles -3 point test• Reasonable• Socially acceptable• Intention to influence

Practical steps to deal with gifts & hospitality

• Making your corporate hospitality policy effective

– Training - decision making principles

– Recording of gifts & entertainment

– Good clear policies

Polling question results

Q1: Does your organisation set monetary thresholds for gifts and hospitality?

33%

23%

8%

8%

29%

0% 5% 10% 15% 20% 25% 30% 35%

Yes -our thresholds are the same for all

Yes - our thresholds differ by country

Yes - our thresholds differ by the position held bythe recipient

Yes - our thresholds differ by the position held bythe recipient and country

No - we don't set thresholds

percentage

Polling question results

Q2: Does your organisation have a central gifts register in place?

28%

17%

17%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Yes

Yes - but not central

No

No- but plans toimplement within the

next 3-6months

percentage

Polling question results

Q3:In light of the Bribery Act, which of the following anti-bribery suggestions are you

likely to implement in the next 3-6months?

17%

22%

11%

18%

17%

15%

0% 5% 10% 15% 20% 25%

Create a plan to close identified gaps

Begin awareness education

Begin to develop a due Diligence programme forthird parties

Review related corporate policies

Conduct an anti-bribery risk assessment

Educate Board and sr management on theimportance of the new law

percentage

Polling question results

Q3: Does your organisation set monetary thresholds for gifts and hospitality?

33%

23%

8%

8%

29%

0% 5% 10% 15% 20% 25% 30% 35%

Yes -our thresholds are the same for all

Yes - our thresholds differ by country

Yes - our thresholds differ by the position held bythe recipient

Yes - our thresholds differ by the position held bythe recipient and country

No - we don't set thresholds

percentage

Polling question results

Q4: SAI Global plan to host more anti-bribery focused webcasts, which of the following topics would you like to hear us discuss?

54%

38%

9%

0% 10% 20% 30% 40% 50% 60%

Third Party DueDiligence

Risk Assessment

Implementing aneffective hotline & casemanagement system

percentage

Questions & AnswersSession

A follow up document will be produced in conjunction with our panel which will aim to incorporate the answers to the

questions posed during this webcast

For more informationWrite to us: info.emea@saiglobal.comVisit: www.saiglobal.com/compliance