Employment: With these treats, are you really bribing us?

If YOU work for the kind of company which turns a blind eye to bribery the latest legislation looks set to change things. Because from this year, "failing to prevent" bribery is an offence for the first time.

Of course, most of us will count ourselves above this kind of corruption. But should we? After all, few businesses run without oiling a few wheels and everyone knows there's no such thing as a free lunch. But are these kind of long-standing practices genuinely unethical?

Die-hard networkers might be surprised to discover that in the rest of Europe at least, the answer is almost certainly yes. In fact, practices which we take to be part and parcel of business networking would be broadly frowned upon in many other countries.

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In Germany, for example, it is illegal to entertain a doctor to a greater value of 12 (10.50), and it seems that other nations have distinctly different ideas of what constitutes a "bribe". So while we may think of bribery in terms of cash or expensive gifts, the technical definition could include parties, drinks or even that networking staple, the working lunch.

What's more, this stricter classification could soon be applicable in Scotland with the advent of a new set of bribery laws. "The new laws look set to tighten up legislation," explains Tom Stocker, partner at McGrigors law firm. "The last Act was written in 1906, and no-one really quite knew what it meant or how to apply it. This new legislation is designed to bring us more in line with Europe."

On the surface this would hardly seem to present a problem to most employees. After all, few of us witness the exchange of brown paper envelopes as part of our daily routine. "Bribery and corruption won't be in anyone's job description, apart from conceivably MI6," says Stephen Lowe of Unison. "So in a strict employment rights sense, there won't be any effect."

At a broader level, however, legally-savvy organisations are already uncomfortable about how the new Act could be applied to networking. Large firms are already taking advice on the new bill, and the wording looks set to cause legal headaches across the country.

In fact, the Bribery Act 2010 could have far-reaching consequences for the way we do business, casting a grey area over the entire issue of basic hospitality. In part, the new legislation extends the jurisdiction of prosecution for bribery, making it illegal for companies and individuals to "fail to prevent" bribery.

"The new law defines bribery in terms of trying to make people behave 'improperly'," explains Tom Stocker."So in this sense there is the possibility for confusion, although the government plans to issue guidelines confirming how the law should be applied.

"In theory, however, this could apply to taking a journalist out for a meal in order to convince them to write a more favourable review for a product. It's difficult to define exactly, as it centres around the idea of inducing someone to behave 'improperly', which is a subjective term. But we're expecting this to essentially mean a behaviour which in the mind of an ordinary person would be inappropriate behaviour for a professional."

With public officials, the law is even stricter, and entertainment in any capacity looks set to be construed as bribery. The terms state than even a free lunch for 'international public officials' is undue influence. "Entertainment directed at foreign public officials could amount to bribery," confirms Stocker. So no more Ferrero Rocher at the ambassador's receptions then.

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"A public official who is induced by a lunch to circumvent a public tender process would be a very cheap date indeed. However, as there is no improper requirement in relation to foreign public officials, relatively modest entertainment could technically breach the Act if could be said that it was intended to influence the public officials in carrying out his or her public functions."

In response to the new Act we're likely to see large organisations rush to write up new "anti-bribery" policies to ensure they are seen to be taking preventative measures in law. Smaller companies will probably overlook the new legislation until some public court case spurs them to behave otherwise.

So what about employees? The good news is that while the Act does make staff liable to prosecution for failing to prevent bribery, in practice, the wider application is down to the employer.

"If an employee is taking clients out for lavish dinners they might want to voice any concerns with their boss, but they really couldn't be expected to do more than this," says Helen Martin, assistant secretary at the STUC. "There are parts of the legislation which specifically relate to directors and ultimately the onus will be on them."

While the STUC is in favour of laws which stamp out corruption, many organisations would disagree with the implications of the new Act. After all, entertaining clients is a tried and tested way of good networking, not to mention an industry in its own right.

Additionally, it could be argued that is it the responsibility of the person at the receiving end of the fancy dinner or cocktail to stay true to their convictions, and that the ability to take clients out to glamorous locations is simply a perk of a healthy bottom line and a sign of respect for those you're dealing with.With the recession, this could be a moot point, as most firms are now eschewing holding lavish events.

"The financial climate means that spending on corporate hospitality is no longer a priority for many businesses," says Kimberley Hamilton, account manager at Only Marketing. "We recently staged our company conference in Scotland. We flew staff in on easyJet, put them up in the Premier Inn and we held the actual event in our own premises. Homespun entertainment is what a lot of companies are now into. So I don't think (the Act] is a serious risk at the moment."

Many companies are also quick to boast that lavish entertainment of any kind was never in their remit, and the Bribery Act will not make any difference to them. Asda, for example is known in the corporate world for eschewing any kind of gifts for their staff, and its meeting rooms proudly proclaim: "We will not accept anything, not even a Coke".

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"Any gifts that do come in are passed on to the Asda Foundation and donated to local good causes," says an Asda spokesperson.

For most firms, however, serious attention is likely to be given to exactly what constitutes "lavish". And staff on the front line of wining and dining might discover their role becomes less enjoyable as Scotland's bribery policy draws in line with Europe.