The FIDS (Fraud, Investigations and Disputes Services) team at Ernst & Young revealed research that shows that most managers do not know their company’s policies on entertaining.
75% of middle managers surveyed deemed that spending more than £100 per delegate is lavish.
Elsewhere, the survey says that 60% were not familiar with their company’s polices in this area, while more than half of the managers questioned (58%) would like more clearly defined limits.
John Smart, partner at Ernst & Young, said: "A great deal of the corporate hospitality being arranged at the moment will far outstrip the £100 per person cost that many UK middle managers consider to be ‘lavish’. Often even more important is the context and timing of hospitality and the impression this may create. Some corporate events this summer will see some businesses buying packages costing up to £7,000 per person. "
He adds that, although this may seem lavish to many, the Bribery Act contains no specific rules, monetary limits or exemptions and each case will ultimately have to be decided on the facts presented at the time, and the context.