Feature: Corporate Hospitality
All in a SPIN
With the new Bribery Act muddying the already murky waters of corporate hospitality and well intentioned gifts, Catherine Chetwynd fi nds out how buyers and suppliers are getting to grips with the rules
GIVEN the levels of hospitality inherent in the business travel industry, it is not surprising that some travel managers are worried about how corporate hospitality is treated in the Bribery Act 2010. “There is general confusion,” says one travel buyer for a major bank. “Last week I got two invitations to go and watch the cricket at The Oval. One was just a ticket and came from a supplier airline that had been given them. The other invite was for a box with full hospitality. I was advised to accept the one with hospitality because it was hosted, even though it included lavish hospitality.” He continues: “Our travel agent has a box at a couple of venues and when they are not using it, they allow us to have it for nothing and any catering we use, we pay for ourselves. How is that covered? How do you put a value on a hospitality invitation? Also, I have to visit a hotel as part of my role, to make sure it is suitable for travellers. Is it reasonable to have a meal while there?” It's not hard to see why there's so much confusion surrounding this potentially sticky subject. Business travel consultant Tony Pilcher says
“We have reasonable limits on hospitality so that people can sleep at night: any hospitality over £1,000 needs to be cleared first”
that most organisations have long covered these issues through procurement and compliance. “We had hospitality and entertaining logs [referring to a former role as a travel buyer], so where you are offered and accept an invitation, you enter it into a log so that it is documented and subject to audit.” He continues, ”The monetary value of an invitation is not always aligned to the influence they are trying to get. It is all about what is reasonable and appropriate and that has always been the case with well run companies.” According to Richard Mumford, partner at law firm ASB Law, audits are all- important: “Make sure everything is audited beforehand, documenting exactly what you are doing and why, and maintain objectivity between the person who took
the hospitality invite and the decision-maker to ensure you make the decision for the right reason,” he says. “Where you run the risk of something going wrong is if you are trying to run a major contract or tender and the person you took to the cricket or rugby awards you the business when they should not have done, and it may be priced slightly higher than that of a
32 I THE BUSINESS TRAVEL MAGAZINE 18 I THE BUSINESS TRAVEL MAGAZINE
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