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New bribery laws will not mean 'death' of corporate hospitality

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By The Drum Team, Editorial

July 13, 2011 | 3 min read

New bribery regulations will not spell the ‘death of corporate hospitality’ a legal expert has claimed.

Following the introduction of the Bribery Act 2010 at the start of July, which could restrict the ‘gifts’ and ‘bribes’ given to potential clients or customers by companies, questions were asked as to just what constituted bribery.

This act will prosecute either individuals or companies found to be in breach.

But Andrew Northage, director of regulator group Walker Morris, has told an audience of marketing chiefs and company managers that this may not impact upon corporate hospitality.

Speaking at a lunch at The Cooking School in Halifax, Northage said: “What people would call normal client hospitality, such as a day at the cricket or a cooking course at The Cooking School, will be fine.

“Businesses should do a risk assessment of the corporate hospitality they offer and also what their employees receive. The more lavish the hospitality, the greater the risk, but it is the intention behind it that is most important. Hospitality designed to build, or build on, good business relationships is outside the scope of the Act.

“Honesty and transparency are the enemies of corruption so my advice is to have a register of what hospitality you offer and what your own employees receive. Put everything into the register, including who accepts what, offers of hospitality declined and if any business was gained following an event. This type of register will help you to look at trends and spot if anything goes wrong.”

Barbara Govan, business manager at The Cooking School, added: “Businesses who came to the event were reassured that they won’t be breaking the law if they continue to offer and accept reasonable corporate hospitality. Andrew’s advice that if ‘something smells wrong, then it probably is’ and his tips for setting up a hospitality register were sensible and practical, helping to clarify concerns about the impact of the new Act.”

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