Can Entertainment be a Bribe?

Handling Corruption in International Sales How corruption works in practice
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Transcript

Welcome back. This video is about what you can do to entertain your customers without offending against the laws on corruption. I worked at one time for a company that had a very large entertainment budget it really believed in payment operated globally. customers were mostly large contractors. And that's why this kind of entertainment was so important because we invited customers and prospects to enjoy corporate hospitality at Dallas Cowboys Manchester United. The wanderers Cricket Ground and Allah spot rugby Stadium in Johannesburg, Twickenham rugby Stadium in London, and a number of other places around the world.

When the Bribery Act was passed in the UK, we had people telling us we'd have to get rid of our box at Manchester United and stop booking hospitality at Twickenham. Because we would not be allowed to entertain anyone there. Unless all of our UK competitors were able to offer the same entertainment. It would be unfair competition. That sounds like nonsense. And it turned out that it was nonsense.

Provided the expenses reasonable. You can provide corporate hospitality at sporting events, the Opera Theatre, or whatever suits your market. You can take people out for a meal. If they're visiting your factory, and they need to spend two days there. You can even pay their hotel bills, but only for those two days and you can take them out to dinner. What you need to be able to show is that what you paid for was proportionate, reasonable, unnecessary.

If these visitors are spending a week in your country only pay for their hotel accommodation for the time that actually spending with you and don't under any circumstances. Pay that Fs. And bear in mind that you can use the legislation as an easy way to explain what you can do and what you can't. You receive an email from a customer quite a big customer, excuse me, and one you don't want to lose. The email says two of the customer staff are coming to your country with three people from his country's government. They'll be there for a week.

You ought to buy the plane tickets and pay the hotel bills for all five businesses. A ridiculous scenario one I've made up suddenly not. That was an actual email I received from a customer in Iraq. And if you want me to be frank, it's typical of the request you get from Iraq. I would always have refused that demand because I don't like being taken for granted and I don't like being treated like a fool. Saying no is much easier now though.

Because all you have to do whatever country you're in. Tell them the name of the anti Bribery Act in your country and say that very sadly, it means you're unable to do what they ask. That won't stop the unreasonable demands from coming. But it makes it much easier to turn them down. So next video is the final video in this course. It deals with what to do when the target of corruption.

The person being offered, the bribe is you see you that

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