Organizations today are determined to build or maintain trust with their employees, customers, business partners, and other stakeholders. Bribery can put all of that accrued trust at risk.
When you think of bribery, you might imagine getting handed an envelope full of cash paired with a not-so-subtle wink. Bribery is often more nuanced than that — and more common than you might think.
Gifts, meals, and entertainment can all be classified as bribes, depending on the context. And employees and leaders alike can sometimes struggle to discern what constitutes a bribe and what’s genuine hospitality. Remote work has only heightened this risk.
Accepting a bribe, even unknowingly, not only violates the law but also could lead to scenarios that damage employee and customer loyalty, ultimately losing the organization money (and integrity). Understanding what classifies as a bribe and how to navigate the gray areas as an HR or compliance leader can protect your company’s reputation, culture, and bottom line.
When do gifts, meals, and entertainment become bribes?
Some companies prohibit the acceptance of gift cards because they’re equivalent to cash, which usually tops the list of offers that can be considered a bribe. But eliminating all scenarios that could enable bribery isn’t so easy.
Things get murky when it’s unclear whether what’s gifted is part of a legitimate business interaction or whether the giver expects anything in return. According to Elizabeth Bille, SVP of Workplace Culture at EVERFI from Blackbaud, determining whether something is a bribe often comes down to context, timing, and value.
Context: If the offer aims to influence a particular outcome, then that’s a red flag. Ask yourself: Is the gift, meal, or entertainment experience meant to persuade someone, curry favor, or sway a business deal? If so, then it could be considered a bribe. If it’s a genuine act of kindness or a signal of gratitude, then the intent may be hospitality. That doesn’t mean employees should accept the offer. There are other factors to consider when determining if an offer is a bribe or otherwise violates company policy.
Timing: When is the item of value being offered? Is it before a major decision is to be made involving the giver? Is it in the process of scoping out a business relationship? Or is it close to when assistance is needed from a government official? In those and similar cases, the offer could be considered a bribe. If it’s closer to a holiday, birthday, or company milestone, then it may be genuine hospitality – even in these cases, however, the offer may not be appropriate to accept.
Value: Is the value of what’s given is commensurate with what you’d expect (or otherwise offer) for hospitality? For example, dining out with a potential vendor is often considered a standard business practice. What would make it concerning for many organizations is if the meal was very lavish, say a private dinner with an all-star chef.
Another example, and a common scenario in which bribery can occur, is business travel. Consider the difference between a vendor inviting a team to the manufacturing site to see how they operate in person and hosting them for breakfast or lunch, versus the same vendor putting the primary decision-maker up in their vacation home while on-site. The latter goes beyond what’s necessary to facilitate a successful site visit and could be seen as bribery.
It’s important to remember that excessive gifts and experiences may be offered in good faith and with no real expectation of a favor in return. Still, even these cases can raise unwanted attention and be viewed as bribery by stakeholders whose trust is important to keep. Therefore, they are often prohibited under company policies and are best avoided.
Guiding principles for defining bribery at work
There are two core sources for defining and detailing bribery in the workplace:
- Applicable law. Various laws exist regarding bribery, such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Staying up to date on the latest anti-bribery legislation where your organization does business is vital for it to remain compliant.
- Company policy. Organizations often detail specific rules for accepting gifts, meals, and entertainment in their company’s code of conduct, which outlines employees’ expected behaviors, ethical standards, and professional practices.
Cultural differences can cause challenges with company policies and even international laws, as gift-giving is a common practice in various cultures. “Compliance officers need to be aware of these cultural nuances and clearly communicate guidance to employees about how to navigate local norms,” Bille says.
The impact of remote work on bribery risks
Remote working environments present added risks. For example, HR and compliance leaders, employee managers, and others are much more aware of a gift basket arriving in the mailroom or a client taking an employee out for lunch when it happens in the office than if either happens while working from home.
What’s more, remote work brings an increased likelihood of having employees in different locations who are subject to different legal frameworks and cultural nuances, which can be challenging to actively manage.
“These things can fly under the radar and have less visibility than they would in an office setting,” Bille says.
That puts the onus on HR and compliance teams to make sure remote employees can easily access the resources and support needed to navigate potential bribery — and that employees understand they are accountable for doing so.
Consider the following recommendations to prevent bribery whether you work in a remote, hybrid, or in-office environment.
How HR and compliance leaders can prevent bribery
It’s the responsibility of HR and compliance teams to safeguard their employees and the organization, and one form of protection for both entities is to prevent workers from inadvertently accepting or offering bribes. “It’s not just illegal and improper. It can damage workplace culture and morale, and have many other negative business impacts, too.” Bille warns.
By taking the following steps, HR and compliance leaders can help employees feel confident navigating situations that involve the risk of bribery and protect the organization’s reputation:
- Develop a solid and clear code of conduct.
- Train employees to recognize potential bribery.
- Create a culture where employees feel safe reporting potential bribery.
Company policies should have clear, plain-language guidelines about what they can and cannot accept or offer regarding gifts, meals, and entertainment. Some organizations opt to have country-specific thresholds and guidelines to comply with local laws and account for cultural norms. Others may have a blanket set of policies and request employees seek out information about exceptions.
In addition to having a policy, ensure all employees are aware of it and proactively train them on how bribery can show up so they can do the right thing when it matters. “It’s not enough to just tell people in a policy not to accept a bribe,” Bille says. “People need to build awareness so they can recognize a potential bribe, even when they are subtle.”
It’s also critical to tell your employees clearly and unequivocally, “Come to us as soon as something like this arises and we will help you navigate it together,” Bille adds. This request is most effective when you’ve built a culture where employees feel safe asking questions and escalating bribery concerns.
Take the guesswork out of bribery
By understanding the nuances of bribery and helping your employees recognize and report the warning signs, you can save your organization money and protect it from serious legal problems.
Learn how to prevent bribery by enrolling your employees in EVERFI’s Code of Conduct training course. With modules less than 10 minutes long, leaders can assign lessons on specific topics like gifts, meals, and entertainment to learners whenever there’s an elevated risk for bribery, such as before a business negotiation, a trip or the holiday season. Protect your organization and employees from the risks of bribery. Learn more today.