Business News
It’s Bah Humbug to Corporate Christmas Giving!
Treating clients at Christmas may become a more subdued affair from now on, as the Bribery Act 2010 comes into play in April 2011. This will mean that businesses looking to splash out on their customers in the festive period with large gifts and hospitality will have to be careful on just how much, and in what context they wish to woo their clients.
Fraud experts, PwC have advised that the new changes in the law have brought in penalties to businesses that do not adhere to the rules laid out in the new legislation. Edwin Harland, director of PwC’s forensic services practice says, “Christmas is the peak season for client entertaining and gift giving but companies would be wise to ensure their policies in this area are adequate and are properly enforced.”
He adds that employers need to be made aware of the exact rules and regulations in this area, and that suppliers should also consider that excessive gift giving and hospitality can often be counterproductive and unwelcome.
The Ministry of Justice’s guidance to the Act and the issues surrounding it, advise that promotional expenditure of no monetary level and deemed to be of a “reasonable and proportionate” level are safe within the realms of corporate gift giving; however, businesses taking the act of giving to excessive and inappropriate levels will feel the wrath of the Bribery Act if found to be giving with a more complex agenda than to thank their clients for their custom.
To assist in the grey area that comes between the levels of right and wrong in this issue, PwC have put together a list of gifts that would be deemed safe to sign off the year with, another that would take a little more consideration as to the context of the gift and the client receiving it, and lastly a list that may come under scrutiny from now on under the legislation.
Those classified as ‘worry not’ gifts;
• Calendars
• Mouse mats
• Drinks mats
• Company logo branded low cost merchandise (stress ball, umbrella, sports bags etc)
• Invitation to a modest Christmas party or lunch
• Reasonable, low key socializing, such as UK sports events with the host present
Those to consider with a little more judgement on the context to which it may be perceived;
• Spirits, Champagne, beverages with a high alcohol content
• Overseas sporting events and entertainment
• Expensive gifts, such as mp3 player, gold pens
Lastly, those questionable gifts that could say ‘you will be paying for this in the New Year’ as well as Merry Christmas!
• Lavish hamper
• Case of champagne
• Invitation to any sporting events where the host is not present
• Anything delivered to a home address
• Handheld technology
Businesses adhering to the new rules set out should not encounter any problems, and none of the classifications are set out in black and white, as every case is different. Businesses doing their homework for the 11 months of the year leading up to end of year client schmooze, shouldn’t have any issues in thanking their clients in what has hopefully been a fruitful year for them…no bribery needed.
