Corporate Entertainment and Bribery: Risks and Mitigation Strategies

Legal and Ethical Risks of Corporate Entertainment

G Ltd occasionally promotes its goods and services using corporate entertainment. For example, it hired a private box hospitality suite at the 2020 Cheltenham Festival (a national horse-racing event) in order to ‘meet and greet’ key UK customers. A four-course meal was served as well as afternoon tea. Guests had access to a free private bar and could place their own bets on the racing using a dedicated betting service. The Cheltenham event was principally held to promote public relations, networking, and interest in G Ltd’s products and services.

G Ltd has been considering the possibility of hosting much more extravagant events in line with its competitors to avoid losing business to them.

The Board of Directors has recently learned that one such competitor is being investigated for bribery due to its lavish corporate hospitality program. You have been called to a board meeting.

You are expected to give a 5-minute presentation covering the following matters:

1. Whether the hospitality provided by G Ltd for guests at the Cheltenham Festival event might make it criminally liable for bribery

2. Whether G Ltd’s plans to expand its corporate entertainment program may give rise to allegations of bribery

3. What steps G Ltd should consider taking as an organisation to avoid any possible future allegations of bribery.

Guidance: The Board will want an outline (rather than a detailed analysis) of any relevant bribery offence(s) and whether/why these offences are likely/not likely to have been committed in the circumstances. The Board will need to be appraised of the circumstances in which corporate hospitality is likely to amount to bribery and what steps might be taken by the company to avoid such allegations in its future dealings.

ASSESSMENT CRITERIA

You will be marked out of 100, broken down as follows:

1. Professional behaviour and appearance

2. Knowledge and understanding

3. Ability to present clearly and precisely

4. Ability to respond to questioning

You may bring a small note card to the meeting (no bigger than A5) containing key bullet points. However, you MUST NOT read from a script. Reading will incur a penalty to your overall mark. As a Compliance Officer you should be appropriately dressed for the meeting, and act with confidence and credibility, ensuring you maintain frequent eye contact with the Chairperson. You should present the information requested at an appropriate volume and with clarity. This is a professional meeting. Students are expected to arrive at least 10 minutes early prior to the scheduled start time. Students who are late will lose marks for professionalism. Students who fail to attend the meeting will fail the assessment.