Case Study Name:
Gifts and Hospitality with Prospective Clients
Case Study Description:
A minister (or an important prospective client) from a developing country asks your company to arrange and pay for a check-up in a prestigious hospital in your country. Since your company wants to keep "good commercial relations" with this minister/client, it is difficult to refuse. Are there any other alternatives than to accept the demand?
Demand Prevention Tactics: How to reduce the probability of the demand being made?
- Within your company, define a clear policy for gifts and hospitality expenses with maximum amounts for gifts to be given and to receive;
- Clearly state this policy on your company website;
- Train your personnel on how to implement this policy, including your accounting staff;
Response to Demands: How to react if the demand is made?
- State your anti-corruption policy and show that you are not allowed to give in to this request;
- Explain that this practice may even be against the law under the OECD Convention;
- Put this answer in writing, in the form of a letter;
- If appropriate, offer logistical support to arrange the visit, but without paying for the visit;
- Offer to advance payment, but clearly explain conditions in writing (repayment expected before a certain date), send reminders if repayment is not made.