Definition activities with high risk relating to corruption
1. Political Contribution
A political contribution is a contribution, financial or in-kind, to support a political cause. Financial contributions can include loans. In-kind contributions can include gifts of property or services, advertising or promotional activities endorsing a political party, the purchase of tickets to fundraising events and contributions to research organizations with close associations with a political party. The release of employees without pay from the employer to undertake political campaigning or to stand for office.
2. Charitable Contribution
Charitable contributions can present risk as they involve payments made without tangible return and may be used as a subterfuge or route for bribery. Donations can be steered for corrupt purposes to “front” charitable, sporting or philanthropic organizations or used to create undue influence such as donating to a favoured cause of a decision maker or customer for a potential contract.
3. Sponsorships
Sponsorships are made for business objectives and usually for brand or reputation management purposes. They can present risk as they involve payments made for services of benefits that are often hard to measure and track. Sponsorships can be subject to kickbacks; funds can be steered for corrupt purposes to “front charitable, sporting or philanthropic organizations or used to create undue influence such as sponsoring a favoured cause of a decision maker or a customer.
4. Gifts, Hospitality and Expenses
Gifts, hospitality and expenses present risks related to bribery. They may be used by corrupt third parties to manoeuvre the company’s employees to a position of obligation and prepare the way for a corrupt act or by an employee corruptly to build favours with prospective clients. Inappropriate gifts, hospitality or expenses given to a potential client may cause offence or infringe the clients own rules and could lead to exclusion from bidding from business.