Anti-Bribery & Corruption — Module 1 of 4

Hospitality

When a client's invitation blurs the line between networking and inducement — three days before a contract decision.

Portrait of Alexa Reeves, Compliance Manager at Meridian Engineering
Your Role

Alexa Reeves

Compliance Manager, Meridian Engineering

Two years into the role. You were hired to build the compliance programme from scratch — the policies exist, the training is planned, but it hasn't been truly tested yet. Today, it will be.

Meridian Engineering has grown from 280 to 600 employees in four years, driven by international project wins in infrastructure and energy.

The Gifts & Hospitality Policy requires pre-approval for hospitality above £500. During active tenders or contract renewals, the threshold drops to £250.

David Mercer, Business Development Director, brought in £18M of contracts last year. He is Meridian's most commercially important employee. You report to Helen Carr, CFO.

Before You Start

How This Works

This is a decision-driven scenario. You'll face real decisions — and your choices shape how the story unfolds.

+3 Best practice — the response a compliance expert would choose
+1 Reasonable but incomplete — you're on the right track
−2 Risky or non-compliant — learn why this path creates problems

Tip: Highlighted text like Section 7 is clickable — tap to read the legal reference in full.

Portrait of David Mercer, Business Development Director
Tuesday, 4:47 PM
Narrator

You're heading to the kitchen when David Mercer catches you in the corridor. Just back from London — suit jacket over one arm, looking relaxed. He mentions it almost as an afterthought.

David Mercer

Alexa — good timing. Quick one. I was at Wimbledon over the weekend. Corporate box, Haldane's invite. Took Jenny from proposals. Spectacular match — Sinner vs. Alcaraz. Anyway, just thought I'd mention it. Should I log it somewhere?

You

David, the Haldane contract renewal is next week.

David Mercer

Exactly. That's why the relationship matters. Look, this isn't a brown envelope, Alexa. It's tennis. Everyone does it.

Tuesday, 5:10 PM

Back at your desk

You pull up the details. The picture is worse than you thought.

DetailValue
EventWimbledon Championships — Centre Court Corporate Box
DateSaturday, 5 July
HostHaldane Infrastructure (client)
Estimated value per person~£2,500 (hospitality package incl. champagne, lunch, afternoon tea)
Meridian attendeesDavid Mercer (BD Director) + Jenny Ashworth (Proposals Manager)
Total estimated value£5,000
Haldane contract renewal decisionWednesday, 9 July — 4 days after the event
Pre-approval obtained?No
Gifts register entry?None
Policy threshold (active contract period)£250 — exceeded by 20×

The hospitality exceeds your policy threshold by a factor of twenty. Accepted during an active contract renewal. No pre-approval, no register entry.

Your phone buzzes. Helen Carr: "David mentioned the Wimbledon thing. Come see me first thing tomorrow."

Portrait of Alexa Reeves, Compliance Manager
Decision Point 1 of 3

Tuesday, 5:25 PM. £5,000 of hospitality, ten times the policy threshold, accepted during an active contract renewal with no pre-approval. David sees no problem. Helen wants to talk tomorrow. The next 12 hours decide whether this stays a policy breach or becomes criminal exposure.

What is your first action?

Your choice

Log, notify, and brief Helen

Log the hospitality retrospectively, require David to disclose to Haldane's compliance team, and brief Helen. Under Section 7, the company must show 'adequate procedures'. Logging plus disclosure is the minimum defensible response.

Your choice

Log it and have a quiet word with David

Enter it in the gifts register and have a private word with David about pre-approval. No need to involve the client. Proportionate response to a paperwork failure.

Your choice

No action needed — it's corporate hospitality

Corporate hospitality is a normal part of BD. The Bribery Act doesn't prohibit reasonable hospitality. Escalating would damage David's trust and the client relationship.

Portrait of Helen Carr, CFO
Wednesday, 8:15 AM — Helen's Office +3
You

Helen, I've logged the Wimbledon hospitality. £5,000, accepted during the renewal window, no pre-approval. I've drafted a disclosure letter for David to send to Haldane's compliance team.

Helen Carr

A letter to their compliance team? That's a bit much, isn't it? We don't want Haldane thinking we're accusing them of anything.

You

It's not accusatory, it's transparency. We received hospitality, we logged it, it didn't influence the commercial relationship. If we stay silent and it surfaces later, the silence looks worse than the hospitality.

Helen Carr

And if David pushes back?

You

He will. But this is what the procedures are for. Section 7 holds the company liable if procedures aren't adequate. We have a policy. We just need to enforce it.

Portrait of Helen Carr, CFO
Wednesday, 8:15 AM — Helen's Office +1
You

Helen, I've logged the Wimbledon event in the gifts register. £5,000 total, no pre-approval. I've spoken to David about the pre-approval requirement.

Helen Carr

Good. And David?

You

He understands. Says it won't happen again.

Helen Carr

Fine. Let's move on.

Portrait of Helen Carr, CFO
Wednesday, 8:15 AM — Helen's Office −2
Helen Carr

Alexa, what's your assessment on the Wimbledon thing?

You

Honestly, Helen, I think it's standard corporate hospitality. David's been doing this for years. The Bribery Act doesn't prohibit reasonable hospitality — the SFO has said as much.

Helen Carr

That's reassuring. I didn't want to overreact.

Narrator

You're right that the Bribery Act doesn't prohibit hospitality. But you've missed the critical word: reasonable. £5,000 of hospitality three days before a procurement decision is not the SFO's definition of reasonable. And by not logging it, you've ensured there's no record that Meridian even knew about it — which is exactly the gap Section 7 was designed to close.

Wednesday, 11:30 AM

Pattern in the register

You're reviewing the gifts register when you find something you didn't expect.

Three months ago, Meridian hosted Haldane's procurement team at a Six Nations rugby match — corporate tickets worth £1,800. Logged by David as 'client relationship event', pre-approved by his line manager (not compliance). The same Rob Langley from Haldane attended.

This isn't a one-off. It's a pattern. Two hospitality events, same client, same procurement contact, within a single contract cycle. Combined value: £6,800.

Your policy says hospitality above £500 during an active contract renewal requires board notification. Helen has already asked you to keep this 'proportionate' — she doesn't want it going to the board.

Activity — Listen & Decide

David follows up after the meeting. Listen to his pitch before deciding what to do.

David Mercer — follow-up call
Press play to listen

Listen to the audio to unlock your choices.

Your choice

Accept, but first get Helen to authorise it in writing so there's a paper trail.

Your choice

Decline, and log David's approach in the gifts register as an offered (not accepted) item.

Your choice

Decline and self-report the offer to the SFO as a precaution.

Your choice

Accept and attend — you'll log it in the register the next day to keep records clean.

Activity — Gifts & Hospitality Register

Log the Criterion Restaurant dinner accurately. Every field matters — a wrong value here could mean this entry doesn't trigger the compliance flag it should, or that a defensible event gets escalated unnecessarily.

Portrait of Helen Carr, CFO
Decision Point 2 of 3

Helen calls you in. She's read your register review. "Alexa, taking this to the board turns a manageable situation into a crisis. Three non-execs, two with no Haldane context. They'll panic. David will feel ambushed. And we could lose the contract over optics." She pauses. "I'm not asking you to bury it. I'm asking you to be proportionate."

How do you handle the escalation?

Your choice

Follow the policy — notify the board

The policy is clear: hospitality above £500 during an active contract requires board notification. £6,800 across two events with the same procurement contact isn't borderline. Under MoJ Principle 6, selective enforcement is worse than no policy at all.

Your choice

Propose a documented compromise

Skip the board if David sends a written disclosure to Haldane, both events are documented with a compliance review note, and David signs an acknowledgement of the pre-approval policy. Defensible paper trail without board-level alarm.

Your choice

Defer to Helen — she's the CFO

Helen hired you and she says this is proportionate. She has more context on board dynamics and the commercial relationship. Going over her head damages the working relationship you need to be effective.

Portrait of Helen Carr, CFO in the boardroom
Thursday, 10:00 AM — Boardroom +3
Helen Carr

For the record, I think this is disproportionate. But Alexa has a point about the policy.

You

The combined hospitality with Haldane totals £6,800 during an active contract renewal. Our policy requires board notification above £500. I'm not suggesting anyone acted in bad faith — I'm asking the board to note the disclosure and confirm next steps.

Helen is unhappy, but she hasn't overruled you. The board receives the disclosure professionally. One non-executive director — a former regulator — notes that this is exactly how adequate procedures should work.

Portrait of Helen Carr, CFO
Wednesday, 3:30 PM — Helen's Office +1
You

Helen, I won't take it to the board — yet. But I need three things: David sends a written disclosure to Haldane's compliance team, both events get a full compliance review note on file, and David signs a written acknowledgement of the pre-approval policy.

Helen Carr

That sounds reasonable. I'll talk to David.

You

One more thing. If anything similar happens again — with any client — it goes to the board automatically. I need that commitment from you.

Helen Carr

Agreed. Let's close this out.

Portrait of Helen Carr, CFO
Wednesday, 3:30 PM — Helen's Office −1
You

You're right, Helen. I'll keep this at our level. The register entry is there, David knows the policy. I don't think we need to escalate further.

Helen Carr

Good call. Sometimes proportionate means knowing when not to make a mountain out of a molehill.

Narrator

Helen is relieved. The board never learns that £6,800 of hospitality was exchanged with a client during a live £4.2M contract renewal. Your policy says board notification is required above £500. You've now created a documented case where the policy wasn't followed — and the reason was your boss told you not to.

Portrait of David Mercer in Alexa's office
Thursday, 3:00 PM
David Mercer

David is in your office. He's not hostile — but he's not happy.

"Alexa, I've been at Meridian for twelve years. I've built relationships that keep 600 people employed. I've never taken a bribe, I've never offered one, and I resent the implication that a day at the tennis makes me corrupt."

"If compliance is going to question every client dinner, every event invitation — good luck getting anyone in BD to tell you anything in future. They'll just stop reporting."

He's not wrong about the reporting risk. If people stop telling you about hospitality because they're afraid of the consequences, you'll have no visibility at all. The question now: what do you put in place so this doesn't happen again?

Portrait of Alexa Reeves, Compliance Manager
Decision Point 3 of 3

Friday, 10:00 AM. The immediate situation is contained. Now: what do you recommend to the CFO, and ultimately the board, to stop this recurring? David's warning that people will 'stop reporting' is genuine. Whatever you propose has to feel like a business enabler, not a police function.

What do you recommend?

Your choice

Mandatory pre-approval, training, and board reporting

(1) Mandatory pre-approval above £250 via a 90-second form, (2) annual scenario-based anti-bribery training, (3) quarterly hospitality reporting to the board. MoJ Principles 1, 5, and 6 as one integrated system.

Your choice

Update the register and send a policy reminder

Update the register to require pre-approval above £500, send a company-wide reminder, and cover the policy in the next all-hands. Raises awareness without adding bureaucracy.

Your choice

Note David's file and move on

The policy already covers this. The problem was David not following it. File a note recording the breach. If it recurs, there's a documented pattern. No need to change a policy that works on paper.

Portrait of Helen Carr, CFO
The following Monday, 9:00 AM +3
Helen Carr

Walk me through this proposal.

You

Three parts. One: a pre-approval form — 90 seconds, auto-routes to compliance, 24-hour response. Not a barrier, a checkpoint. Two: annual scenario-based training. Three: quarterly board reporting — aggregate data, trends, anything above threshold.

Helen Carr

David's going to hate the form.

You

He'll use it if it's 90 seconds and most requests clear in 24 hours. If David had called before Wimbledon, we could have approved it with conditions. He'd have gone to the tennis, we'd have a clean file. Cost: roughly zero. The alternative is a Section 7 prosecution we can't defend.

Portrait of Helen Carr, CFO
Friday, 2:00 PM +1
You

I've updated the register to require pre-approval above £500 and drafted a company-wide reminder. I'll present the policy at the next all-hands.

Helen Carr

Sensible. Not too heavy-handed.

Narrator

The email goes out on Monday. 73% of staff open it. By Friday it's forgotten. Eight months later, another BD manager accepts an invitation to the Emirates Stadium from a contractor bidding on a subcontract. He doesn't pre-approve it — because he didn't read the email either.

Portrait of Helen Carr, CFO
Friday, 2:00 PM −2
You

I've drafted a note for David's personnel file documenting the policy breach. The policy already covers this — he just didn't follow it.

Helen Carr

Fair enough. These things happen.

Narrator

The note goes into David's file. David never sees it. No one else in the business learns anything from the incident. The pre-approval process remains a paragraph on page 7 of the employee handbook. The gifts register remains a spreadsheet that compliance reviews annually — retroactively, after the events have already happened.

Six Months Later

The Reckoning

The Haldane contract renewed. The hospitality didn't sway the outcome. What happens next depends on the system you built.

Module complete. Continue when you're ready. Continue to Module 2 →
Your Result
/ 9

Your Decisions

Key Lessons

1. Corporate hospitality isn't automatically a bribe. Value, timing, and proximity to a commercial decision are the three factors the SFO examines first.
2. The Section 7 defence requires adequate procedures that are enforced, not just written. An intranet policy nobody follows is not adequate.
3. Easy systems get used. A 90-second pre-approval form is a business enabler. A 30-page policy manual is a filing exercise.
4. MoJ Principles 1, 5, and 6 work as a system: proportionate controls + training that teaches the why + monitoring that catches patterns before they're prosecutions.

Key Legal References

Section 1

Bribing another person

Section 7

Failure to prevent

MoJ Principle 1

Proportionate procedures

MoJ Principle 5

Communication & training

MoJ Principle 6

Monitoring & review

SFO Guidance

Hospitality approach

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Module 2 of 4

Next: Grease

Equipment stuck at Accra port. Liquidated damages at £8,500/day. The customs official wants $2,000 to clear it.

Continue to Module 2 →