Corporate hospitality undoubtedly benefits business, but be aware of the legal pitfalls...We provide 9 tips on getting it right
1. Try and find the right balance between what is sensible, allowable and within reason. Above all, apply common sense
2. Approval, approval and approval are the key words. Hospitality will have to go through an authorisation process and scrutiny by compliance departments
3. Transparency is crucial. Keep a record, and employ a system that ensures all hospitality is documented and approved within corporate policy
4. Proper staff training, continual monitoring and the establishment of clear reporting lines between staff and senior management is also advisable.
5. You need to observe a typical code of compliance, including putting in place appropriate financial controls relating to hospitality.
6. Designate a single person to be responsible for overseeing all compliance matters – likely to be the chief compliance officer.
7. The litmus test (even as a buyer) is: can you justify it, if you were asked by your boss after such a corporate hospitality event?
8. The value of a corporate hospitality package to the recipient, rather than the cost to the organisation, is seen as the relevant measure.
9. Despite all the above provisos, don’t underestimate the benefits that come from hospitality – it’s still a sure-fire way to cement business relationships.
Read the in-depth feature getting corporate hospitality spot on for your business
Click on the tag below more tips and advice