As we approach this year’s festive period, the question of whether or not to offer corporate gifts is one that is on many suppliers’ minds.

The first UK Bribery Act was passed this summer, bringing with it a whole host of grey areas and confusion- just accepting a gift can now land a company with a hefty fine or even a criminal conviction. Price Waterhouse Coopers has suggested that the act will give the UK one of the most stringent anti-corruption laws in the world.

The procurement sector is one in which it is common practice for suppliers to buy gifts for their customers at Christmas, but this looks set to change now that the new law is in place.  The act was brought in to effect in an effort to bid farewell to procurement corruption and to provide a level playing field for smaller suppliers that cannot offer the extravagant gifts of their larger counterparts.

Companies have been advised to implement adequate procedures to help prevent acts of bribery; failure to do this could include penalties such as a strict liability conviction, an unlimited fine or even exclusion from participating in tender processes.  Under the Proceeds of Crime Act, a contract entered in to as a result of a bribery offence can be immediately withdrawn, a penalty which could be all too destructive to businesses in the current economic climate.

As reported in Procurement Leaders, Andrew Gordon, head of investigations at PwC Forensic Services said that buyers should proactively make vendors aware of their gift policy and noted that the onus is placed on companies for the establishment of appropriate standards.

The Bribery Act does allow for ‘reasonable and proportionate’ corporate hospitality, but the confusion comes in that these words are highly subjective and therefore open to interpretation.

Has the Bribery Act caused any problems for you as a procurement professional this Christmas? Has your company decided to adopt a gift policy? We welcome your comments.