With the Olympic Games on our doorstep, it is inevitable that some companies will want to take advantage of the corporate entertainment opportunities available at various events and venues throughout the summer. If your business is planning to take advantage of London 2012, using the Olympics to promote your business, take care to comply with the provisions of the Bribery Act 2010.

The Act applies to all UK incorporated companies and those overseas companies who conduct an element of their business within the UK. As a reminder, it prohibits the provision of any financial or other advantages with the intention of influencing the recipient to act improperly rather than in good faith and on an impartial basis, including inducing customers to enter into contracts or encouraging officials to act improperly in the performance of their functions.

The UK government clearly supports bona fide hospitality by businesses seeking to improve their commercial image, promote products and establish mutual relations; however the more lavish these shows of hospitality become, the more likely it is that this could be viewed as a potential bribe - even where the entertainment has been provided with the company’s best intentions.

For those companies looking to make the most of what may be a once in a lifetime opportunity, provided that any entertainment is reasonable, proportionate to the monetary resources of the provider and the business relationship and the appropriate policies and procedures are in place, there is no reason why the Olympics can’t be used to assist a business to prepare for its future and create its own lasting Olympic legacy.

We recommend that clients develop policies and processes to record entertainment and marketing activity to ensure they do not fall foul of the legislation. Working with our employment colleagues, we are able to advise on what is most appropriate and to put our general experience into the context of specific client businesses.

This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this document.