Business Law
Will you committ bribery if you say yes to a fancy dinner?
Bribery is not only a criminal offence when a company representative hands over an envelope with money to a goverment official in order to get that contract. It can also be you accepting a nice gift that is given to you with the intent to influence you in your professional role so that your actions gain the giving party in an inappropriate or unethical way. So lets learn what we all need to know and be mindful of so we don´t - without thinking it through - end up crossing the line of giving or recieveing a bribe.
With two down-to-earth examples we shall explore how it can impact you and your actions.
What is a bribe?
While there is no globally agreed definition of bribery there is a core that can be described as follows: The offering, promesing, gicing, accepting or soliciting of an advantage as an inducement for an action which is illigal, unethical or a breach of trust, Inducements can take the form of money gifts, loans, fees, rewards or other advantages (taxes, services, donations, favours etc). It is someone in an appointed position acting voluntarey in breach of trust in exchange for a benefit.*
When can it happen?
The act of bribery can not only happen when someone holds the relevant position of power or influence, it can also happen before and even after. This is to protect the rules from circumvention and it is therefore important to be careful also after someone has left their relevant role.
To whom can it be given?
A bribery can be given to both goverment officials and persons working in private companies or functioning as independent agents. Furthermore, the bribe does not have to be given directly to the individual one is trying to influence, it can also be given to someone in they care for such as giving their child an internship, providing their spouse with a gift etc.
Example 1 - A gift in the sales process Is it bribery if you give an HR manager in a private company an IPAP when you are trying to sell in your SaaS product to her company?
Yes, giving an Ipad (Incentive, Prize, or Appreciation Payment) to an HR manager in a private company while trying to sell your SaaS product could be considered bribery under certain circumstances, depending on the intent, local laws, and the company’s policies.
Key considerations:
1. The intent: If the Ipad is given with the intention of influencing the HR manager’s decision to purchase your SaaS product, it could be classified as bribery. If the IPAP is considered to be a small, customary token of appreciation, typicall in the relevant industry, given without expectation of a favor, it may not be considered bribery.
2. The HR managers role: If the HR manager has the authority, or ability to in some way shape or form influence, the purchase decision, offering him or her an Ipad could be seen as an attempt to improperly influence him or her decision. If the HR manager has no way of influencing the process at all, the payment could still raise ethical and legal concerns. This is in particalur so if the HR manager is the only one reciving the perk at the potential customer as this could serve to try and influence her behaviour so she does not act with loyalty towards her employer in full, but instead tries to give you an unfair advantage in some form.
3. Private vs. public sector: Since this involves a private company, the rules differ from public sector bribery (which is even more strictly regulated). However, most jurisdictions have commercial bribery laws that criminalize improper inducements in private business dealings. so I would advice that no undue gifts should be used even in a private setting.
4. Company policies: Many companies have strict anti-bribery and ethics policies prohibiting employees from accepting incentives from vendors. The HR manager could violate their company’s compliance policies, leading to reputational and legal risks for both parties.
Example 2 - Wine and dine them Is it a bribery if a seller of IT services, takes the Head of IT at a big corporation to a very expensive dinner with champagne, in order to influence the Head of IT to buy IT services from the sellers´ company?
Yes, taking the Head of IT at a large corporation to a very expensive dinner (with champagne) with the intent to influence their decision to purchase IT services could be considered bribery, depending on the circumstances, jurisdiction, company policies, and the perceived intent behind the gesture.
Key considerations:
1. The intent: If the purpose of the lavish dinner is to create goodwill and strengthen a business relationship without expecting a direct favor, it may not be considered bribery. However, if the intent is to influence the Head of IT’s purchasing decision, it could be classified as bribery or an improper inducement. In many jurisdictions, any action to "wine and dine" a person working at a potential customer or other business partner, must with done in moderation in order for it to be acceptable.
2. The Value of the Dinner & Proportionality: A modest business meal (e.g., a regular lunch or dinner within reasonable limits) is often considered acceptable business hospitality. A very expensive dinner with champagne can be seen as excessive, which raises red flags, especially if:
It significantly exceeds what is considered normal business hospitality.
It is not disclosed to the Head of IT’s employer.
It creates a sense of obligation for the Head of IT to favor your company.
3. The Head of IT’s role: If the Head of IT has authority over vendor selection or influences procurement decisions, a lavish gift or entertainment can be viewed as an attempt to improperly sway their decision. If they have no purchasing influence, the risk of bribery concerns is lower (but still relevant).
4. Company Policies: Large corporations typically have strict policies on accepting gifts, entertainment, and hospitality from vendors. Many companies set limits on the value of meals, often requiring pre-approval or disclosure for expensive dinners.
End note
The rules concerning bribery are more far-reaching than you might think at a first glance. Hence you need to stay mindful in any case where you are considering offering an individual who is not an employee of yours, a perk, a gift, or some other form of incentive where there is a risk that it can be seen as you trying to influence their actions in their professional role.
*See for instance: https://www.antibriberyguidance.org/qa-relation-bribery-offences-sweden/guidance
Author: Kat Strandberg
London: March 21 2025 Email: Kat@stgcommerciallaw.com
What is a bribe?
While there is no globally agreed definition of bribery there is a core that can be described as follows: The offering, promesing, gicing, accepting or soliciting of an advantage as an inducement for an action which is illigal, unethical or a breach of trust, Inducements can take the form of money gifts, loans, fees, rewards or other advantages (taxes, services, donations, favours etc). It is someone in an appointed position acting voluntarey in breach of trust in exchange for a benefit.*
When can it happen?
The act of bribery can not only happen when someone holds the relevant position of power or influence, it can also happen before and even after. This is to protect the rules from circumvention and it is therefore important to be careful also after someone has left their relevant role.
To whom can it be given?
A bribery can be given to both goverment officials and persons working in private companies or functioning as independent agents. Furthermore, the bribe does not have to be given directly to the individual one is trying to influence, it can also be given to someone in they care for such as giving their child an internship, providing their spouse with a gift etc.
Example 1 - A gift in the sales process Is it bribery if you give an HR manager in a private company an IPAP when you are trying to sell in your SaaS product to her company?
Yes, giving an Ipad (Incentive, Prize, or Appreciation Payment) to an HR manager in a private company while trying to sell your SaaS product could be considered bribery under certain circumstances, depending on the intent, local laws, and the company’s policies.
Key considerations:
1. The intent: If the Ipad is given with the intention of influencing the HR manager’s decision to purchase your SaaS product, it could be classified as bribery. If the IPAP is considered to be a small, customary token of appreciation, typicall in the relevant industry, given without expectation of a favor, it may not be considered bribery.
2. The HR managers role: If the HR manager has the authority, or ability to in some way shape or form influence, the purchase decision, offering him or her an Ipad could be seen as an attempt to improperly influence him or her decision. If the HR manager has no way of influencing the process at all, the payment could still raise ethical and legal concerns. This is in particalur so if the HR manager is the only one reciving the perk at the potential customer as this could serve to try and influence her behaviour so she does not act with loyalty towards her employer in full, but instead tries to give you an unfair advantage in some form.
3. Private vs. public sector: Since this involves a private company, the rules differ from public sector bribery (which is even more strictly regulated). However, most jurisdictions have commercial bribery laws that criminalize improper inducements in private business dealings. so I would advice that no undue gifts should be used even in a private setting.
4. Company policies: Many companies have strict anti-bribery and ethics policies prohibiting employees from accepting incentives from vendors. The HR manager could violate their company’s compliance policies, leading to reputational and legal risks for both parties.
Example 2 - Wine and dine them Is it a bribery if a seller of IT services, takes the Head of IT at a big corporation to a very expensive dinner with champagne, in order to influence the Head of IT to buy IT services from the sellers´ company?
Yes, taking the Head of IT at a large corporation to a very expensive dinner (with champagne) with the intent to influence their decision to purchase IT services could be considered bribery, depending on the circumstances, jurisdiction, company policies, and the perceived intent behind the gesture.
Key considerations:
1. The intent: If the purpose of the lavish dinner is to create goodwill and strengthen a business relationship without expecting a direct favor, it may not be considered bribery. However, if the intent is to influence the Head of IT’s purchasing decision, it could be classified as bribery or an improper inducement. In many jurisdictions, any action to "wine and dine" a person working at a potential customer or other business partner, must with done in moderation in order for it to be acceptable.
2. The Value of the Dinner & Proportionality: A modest business meal (e.g., a regular lunch or dinner within reasonable limits) is often considered acceptable business hospitality. A very expensive dinner with champagne can be seen as excessive, which raises red flags, especially if:
It significantly exceeds what is considered normal business hospitality.
It is not disclosed to the Head of IT’s employer.
It creates a sense of obligation for the Head of IT to favor your company.
3. The Head of IT’s role: If the Head of IT has authority over vendor selection or influences procurement decisions, a lavish gift or entertainment can be viewed as an attempt to improperly sway their decision. If they have no purchasing influence, the risk of bribery concerns is lower (but still relevant).
4. Company Policies: Large corporations typically have strict policies on accepting gifts, entertainment, and hospitality from vendors. Many companies set limits on the value of meals, often requiring pre-approval or disclosure for expensive dinners.
End note
The rules concerning bribery are more far-reaching than you might think at a first glance. Hence you need to stay mindful in any case where you are considering offering an individual who is not an employee of yours, a perk, a gift, or some other form of incentive where there is a risk that it can be seen as you trying to influence their actions in their professional role.
*See for instance: https://www.antibriberyguidance.org/qa-relation-bribery-offences-sweden/guidance
Author: Kat Strandberg
London: March 21 2025 Email: Kat@stgcommerciallaw.com