Holiday Gift or Bribe? When to Draw the Governance and Compliance Line

In the Governance, Risk, and Compliance (GRC) industry, ethical corporate gift-giving is crucial to uphold integrity and adhere to global anti-corruption laws. Employees must navigate complex regulatory frameworks and cultural nuances to ensure their actions align with both local customs and international legal standards. 

A Snapshot of a Few Global Laws Governing Gift-Giving:

UK Bribery Act 2010: This Act—which set the international benchmark for the future of compliance—criminalizes offering, promising, or giving any financial or other advantage to induce improper performance of a relevant function or activity. It applies to both public and private sectors, with no exemptions for facilitation payments or corporate hospitality. Offenses include accepting, requesting, or offering a bribe.  

U.S. Foreign Corrupt Practices Act (FCPA): The FCPA prohibits U.S. persons and businesses from making corrupt payments to foreign officials to obtain or retain business. It requires accurate record-keeping and has provisions for internal controls to prevent bribery. Its intention is to ensure businesses operate honestly, maintain accurate books and records, and restore public confidence in fair business practices. FCPA violations have resulted in over $13 billion in penalties since 1977, including recent high-profile cases. 

China’s Anti-Unfair Competition Law (AUCL): This law prohibits business operators from bribing entities or individuals with the intent of securing transactional opportunities or competitive advantages. It covers both tangible and intangible benefits.  

Brazil’s Clean Company Act, or the Anti-Corruption Law: This legislation holds companies liable for corrupt practices, including bribery of domestic or foreign public officials. It imposes strict civil and administrative penalties for violations and requires businesses to operate with fairness and in good faith. Policies cover ensuring acceptable gift-giving and hospitality practices.

What Can Be Done to Mitigate Gift-Giving Risk?

Employees must ensure that any gifts or hospitality offered or received are reasonable and transparently exchanged. Organizations must remain aware of the specific legal requirements in the jurisdictions where they operate and ensure compliance with both local and international anti-bribery laws. Regular training and clear internal policies are essential to help employees navigate the complexities of ethical gift-giving and maintain the organization’s commitment to integrity and compliance. 

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From gift submission forms to being able to auto-approve gifts to establishing employee gift-giving limits, request a demo here of our Gifts & Hospitality solution.