Giving and receiving gifts and entertainment
Efficient business transactions and effective decision-making require objectivity. Therefore, employees must not give or accept gifts, entertainment, or any other personal benefit or privilege that could influence, or appear to influence, their objectivity in carrying out their duties in the best interests of the company.
The exchange of gifts and entertainment is not inherently unethical. It can be an effective way to build goodwill in business relationships. However, some gifts and entertainment can exert improper influence. They can be, or can be seen to be, undue attempts to influence decisions and behaviour, or bribes. Such circumstances may tarnish Sasol’s reputation for fair dealings or may even break the law.
Sasol’s policy makes the distinction between appropriate and inappropriate giving and receiving of gifts and entertainment.
Company employees and officials may give and receive appropriate, lawful business gifts in connection with their work with commercial customers and other non-governmental parties. Special care must be taken when dealing with government officials, as many countries do not allow officials to accept gifts or entertainment.
All such gifts should be reasonable, not excessive in value or repeated unduly. Moreover, they should be given or received with no intent or prospect of improperly influencing the recipient. Gifts and entertainment, given and received, should be acceptable when all the facts are considered.
What is deemed to be acceptable cannot be quantified, as it will differ according to job categories, levels and situations. For instance, when negotiating contracts even a low-value gift or entertainment can create a conflict of interest.
In the interest of fairness this policy applies equally to gifts and entertainment given and received. The policy does not differentiate between Sasol officials and employees giving gifts and entertainment to outside stakeholders or receiving gifts and entertainment. This is because, as a values-driven organisation, Sasol’s approach is not to put its stakeholders in the position of being faced with conflicts of interest in their relationships with Sasol.
Gifts and entertainment means anything of value including, but not limited to discounts, loans, cash, favourable terms on any product or service, prizes, transportation, use of vehicles or vacation facilities, shares or other securities, participation in share offerings, home improvements, tickets, gift certificates, sports events, spa treatments, golf days and so forth.
In most countries gifts and entertainment given to employees by employers or related entities are subject to fringe benefit taxation. In this case the employee giving the gift or entertainment is responsible for ensuring that these items are recorded in the appropriate salary systems for tax purposes. The employee is also responsible for retaining the necessary proof for having done so.
Gifts and entertainment between Sasol employees and others fall into three categories:
- Those that are never acceptable.
- Those that may be acceptable but require prior approval.
- Those that are usually acceptable and require no approval.
1. Gifts and entertainment that are never acceptable
Notwithstanding anything else in this policy, and irrespective of the source of the funds used, the following giftsor entertainment are strictly prohibited:
- The giving or receiving of cash or a cash equivalent.
- The giving or receiving of any gift or entertainment that would constitute a contravention of any law. Examples are the US Foreign Corrupt Practices Act, the UK Bribery and Corruption Act and the SA Prevention and Combating of Corrupt Activities Act.
- The giving or receiving of anything that creates an obligation to reciprocate. If any doubt exists as to whether a gift or entertainment is unacceptable, the official or employee must discuss it with their line manager who must be level 4 or above, ethics officer and legal advisor. A conservative classification should be made based on all the relevant facts.
2. Gifts and entertainment that may result in conflicts of interestthat require approval
As a general rule, the following guidelines apply to gifts and entertainment.
Any gifts or entertainment that could result in a conflict of interest must be declined tactfully, on the basis that it violatesSasol policy. Where this course of action would be inappropriate, the official or employee should accept the offer but declareit in terms of the guidelines below.
All gifts and entertainment that can be seen, individually or together, to create a conflict of interest must be dealtwith in the following manner:
- They may only be given or received with the written approval of a senior line manager who is at least a level 4 or above,in consultation with the appropriate ethics officer and legal advisor. Such approval may only be given in exceptional circumstances where such gifts or entertainment are clearly in the best interests of the company.
- They must be declared and recorded in the official conflict of interest registers of the companies (whether the gift orentertainment is accepted or not).
- Gifts are deemed company property once approved and accepted and may not be retained by the employee for personalbenefit under any circumstances.
- They must be recorded within 30 days in the conflict of interest register and must be disposed off within 30 days in termsof a written resolution between the official or employee’s line manager who is at least a level 4 or above, ethics officer andlegal advisor. The details of such disposal must be recorded by the official in the business’ register and these records shall beavailable for inspection and auditing.
- Entertainment of the following nature is deemed to have inherent potential for creating conflicts of interest and should becarefully dealt with:
– Entertainment that includes partners, family members or close friends or officials and
employees.
– Entertainment lasting longer than a few hours or repeated often.
– Expensive meals.
– Entertainment away from an official or employee’s work environment
– Sought-after entertainment such as high-profile shows, sporting events or recreational
opportunities.
3. Gifts and entertainment that are acceptable
Sasol allows the giving or receiving of gifts or entertainment where there is clearly no possibility of creating a conflictof interest. Such gifts or entertainment are seen to be customary and proper under the circumstances, provided thatno obligation is expected. Some gifts and entertainment are sufficiently modest that they do not require prior approval.
Typical examples of such gifts and entertainment include:
- Modest and occasional meals with someone with whom the official or employee does business.
- Entertainment that involves occasional attendance at ordinary sports, theatre and other cultural events.
- Gifts of limited value, such as pens, calendars or small promotional items.
- Widely bestowed privileges deemed as insignificant and granted in full public view. Such items can include gifts handedout at Sasol leadership forums, low-value calendars, low-cost meals during business hours and hospitality at official Sasolfunctions, reasonable handouts of reasonable value offered at trade fairs and conferences, etc.
- The giving or receiving of gifts and entertainment by Sasol employees funded from private money on widely recognized occasions such as Secretaries’ Day and St Valentine’s Day.
Gifts and entertainment where there is clearly no possibility of creating a conflict of interest, specifically within and relatingto the official or employee’s position and function, do not need approval. Any such gifts and entertainment may only beaccepted if they are reasonable and not excessive. This judgement call is left to the discretion of the official or employee.
What is deemed to be reasonable and appropriate cannot be quantified, as it will differ according to job categories, job levelsor situations. For instance, when negotiating contracts, even a low-value gift or entertainment can create the possibility fora conflict of interest. The official or employee is expected to exercise sound judgement and bears the responsibility fordefending their decision. If uncertain, the official or employee must seek the advice of their line manager, who must beat least a level 4 or above, ethics officer and legal advisor in making a final decision.
The following questions are helpful in determining whether a gift or entertainment is appropriate:
- Intent – Is my intent only to build a business relationship or offer normal courtesy, or is it to influence the recipient’sobjectivity in making a business decision?
- Materiality and frequency – Is the gift or entertainment modest and infrequent or could it place, or be seen to place,the other party under an obligation?
- Legality – Am I sure that the gift or entertainment is legal both in my country and in the country of the recipient?
- Compliance with the other party’s rules – Is the receipt of the gift or entertainment allowed by the recipient’sorganisation?
- Transparency – Would I be embarrassed if my manager, colleagues or anyone outside Sasol became aware of this?(If so, it is probably the wrong thing to do.)
- Hypocrisy – Am I adopting double standards? (We should only offer what we would be comfortable to accept, and vice versa).