During the seasonal period, many businesses turn their attention to showing appreciation for clients, suppliers and business partners, but what seems like a harmless festive gesture could land you in hot water if you're not careful. With corporate gifting comes great responsibility: compliance with bribery legislation. Even with the best intentions, getting it wrong can expose your business to serious legal and reputational risks.

The Bribery Act 2010

The Bribery Act 2010 is the primary anti-corruption law in the UK, introducing strict corporate liability. 

Think further than just brown envelopes stuffed with cash; the Act prohibits offering, promising, giving, requesting, or accepting any advantage intended to improperly influence business conduct. This covers anything of value, be it gifts, hospitality, entertainment, or services. The Act enforces significant penalties, such as unlimited fines and even imprisonment.

As a business owner, you are responsible for your people, and liability can arise from the actions of employees, consultants, or partners acting on your behalf. Failing to prevent bribery, even if you didn’t authorise it, is an offence in itself.

The festive season doesn't create any special exemptions. The fact that "everyone does it at Christmas" won't stand up as a legal defence, and claiming that you weren’t aware of the legislation also won’t protect you.

What businesses are affected by The Bribery Act?

The Bribery Act applies to organisations of all sizes, whether you're a sole trader, a family firm, or an established SME. 

Smaller businesses can be particularly vulnerable due to fewer compliance resources and closer personal relationships with clients that can blur professional boundaries. What feels like a friendly gesture between long-standing business contacts might, in certain circumstances, cross a legal line.

Businesses dealing with local authorities, public bodies, or government contracts should take extra precautions. Even a relatively modest gift can create problems when public funds or public trust are involved. What might be perfectly acceptable between private businesses could be completely inappropriate when dealing with the public sector.

What makes an acceptable corporate Christmas gift?

An acceptable gift is one given freely, with no expectation of anything in return, and certainly no intention of swaying someone's judgement.

Context matters

Context can act as a key distinction. A hamper sent in January as a thank-you for a successful year is unlikely to raise concerns, but the same hamper delivered while a contract renewal is under negotiation? That's a different story entirely. Timing can transform a thoughtful gesture into something that looks decidedly suspect. 

While Christmas gifts are contextually sound, other factors also contribute to an appropriate gift.

The appearance of intent

One of the trickier aspects of bribery law is that prosecutors don't need to prove an explicit quid pro quo arrangement. If the circumstances suggest the giver hoped to gain an advantage, or that the recipient might feel obligated, that's sufficient grounds for investigation, whether the intentions were there or not.

You might genuinely believe you're simply nurturing a valuable business relationship, but if the timing looks strategic or the value seems disproportionate, regulators may draw different conclusions. Well-meaning employees who misjudge what's appropriate can inadvertently expose the entire business to risk.

Keep things proportionate

Not all gifts carry the same risk. A box of chocolates or a modest bottle of wine as a seasonal token is generally fine, as these are recognisable gestures of goodwill that wouldn't reasonably be expected to influence anyone's business decisions. Problems emerge when gifts become lavish, unusual, or suspiciously timed. Expensive watches, luxury holidays, premium event tickets, and high-end electronics are much harder to justify as simple courtesy. 

For smaller businesses, there can be pressure to match what larger competitors might offer, but this is often a mistake. An extravagant gift from a small supplier can look even more questionable than the same gift from a corporate giant.

Ask yourself: would a reasonable outsider think this gift might influence the recipient's decisions? If there's any doubt, step back and reconsider.

Advice for corporate Christmas gift giving

The Bribery Act requires businesses to take "adequate procedures" to prevent bribery.

Create a clear policy

Write a clear policy that covers all corporate gift giving, written in plain English, not legal jargon. This policy should be applied consistently throughout the year, not just at December time, but be sure to remind your staff of the guidelines before the Christmas rush begins.

The policy should enforce:

• Strict value limits, providing a clear threshold for what values fall under ‘acceptable’ gift giving.
• Requirement of management sign-off for any gifts above a certain value.
• Recording of a simple, but transparent log of all gifts given and received.

A brief, practical policy that employees actually understand is far better than having no policy at all.

Provide training

Ensure all employees have received sufficient training that covers the policy and the correct steps to take if they feel it has been broken, but encourage them to ask questions rather than just making assumptions. 

All staff should be made aware that they can politely decline or return gifts that they feel are inappropriate; there is never an implication to reciprocate them.

The bottom line

Showing appreciation at Christmas is part of maintaining good business relationships. Done thoughtfully and proportionately, it can strengthen professional connections and spread genuine goodwill. Done carelessly, it can expose your business to legal risk, regulatory investigation, and reputational damage.

The rules aren't designed to stop businesses from being generous or friendly. They exist to prevent corruption and maintain trust in commercial dealings. By understanding where the boundaries lie and implementing sensible safeguards, you can celebrate the season without creating compliance headaches.

If you're uncertain about your obligations, or if you need help creating appropriate policies for your business, get in touch. We can provide practical guidance tailored to your circumstances.