SUPPLY CHAIN GIFTS, ENTERTAINMENT AND HOSPITALITY PROCEDURE

Transcription

1 SUPPLY CHAIN GIFTS, ENTERTAINMENT AND HOSPITALITY PROCEDURE Version 2 Applicable from 01 December

2 CONTENTS 1. OVERVIEW Background Purpose Application Summary of Procedure Scope GIFTS, ENTERTAINMENT AND HOSPITALITY Principles Gifts Entertainment Hospitality (including attendance at business functions) Gratuities (including donations) Exceptions to the recording of gifts, entertainment and hospitality Unacceptable Practices DECLARATION PROCEDURE Declaration of gifts and communication with the offering party Declaration of entertainment and hospitality Approval process for hospitality (including business functions) Capture and verification of Declaration Procedure Maintenance of Declaration Register Transparency of Procedure Consultation on Procedure Communication with supplier Provision of gifts, entertainment or hospitality to suppliers CONTRAVENTION OF THE PROCEDURE Breach of this Procedure Speak Up RELATED GLOBAL POLICIES CONTACT INFORMATION AND PROCEDURE CLARIFICATION DOCUMENT AND VERSION CONTROL APPENDIX 1: LIST OF KEY CONTACTS WITHIN SUPPLY CHAIN APPENDIX 2: SAMPLE NOTE TO BE SENT TO SUPPLIERS UPON OFFER OF A GIFT, ENTERTAINMENT, HOSPITALITY OR DONATION

3 1. OVERVIEW 1.1 Background Anglo American s Supply Chain aims to have professional relationships with all of its suppliers. Employees should therefore seek to maintain the highest standard of integrity in all business relationships, reject any business practice which might reasonably be deemed improper and foster the highest standards of industry behaviour. Within the Supply Chain environment, it is particularly critical to demonstrate a higher standard of engagement with our suppliers and ensure that employees exemplify the highest standards of conduct. As such it is imperative that no employee may accept or receive any gift, entertainment, hospitality or other gratuity including donations from any supplier to Anglo American or bidder for Anglo American business. This Procedure is not intended to detract from the desirability of fostering good relations with business partners and other stakeholders through legitimate, occasional social interactions. Section 1.4 provides comprehensive guidance for a number of scenarios where it may be permissible to give or receive gifts, entertainment or hospitality. The receipt, offering or providing of inappropriate gifts or entertainment may cause embarrassment to Anglo American and damage our reputation. Particular concerns arise when the offering of gifts, entertainment, hospitality or donations may be connected in some way with an actual or potential business transaction or regulatory approval. Even if the intent is not corrupt, there is still a risk that a recipient or an objective third party may perceive the offering to be an attempt to gain an improper advantage. Any gift, entertainment, hospitality or donation is always unacceptable if it: 1. is offered or made in exchange for a contract, a permit or any other specific benefit, 2. is offered to obtain an improper advantage in the conduct of business, 3. is in breach of local or international bribery laws, 4. would, if it became public, adversely affect our reputation, 5. may create a sense of obligation, 6. may influence, or be perceived to influence, business judgement, 7. may create, or appear to create, a conflict of interest 8. is obtained through solicitation (i.e. employees requesting favours or gifts from suppliers or potential suppliers). 1.2 Purpose This Procedure is intended to support the Anglo American Business Integrity Policy and Performance Standards (BIPPS) which remains an overarching Policy applicable across the organisation. The 11 Performance Standards are intended to provide further guidance to employees on areas of particular reputational and business risk including the receipt of gifts, entertainment and hospitality; managing conflicts of interest; facilitation payments; the use of company assets and political donations. The purpose of this Procedure is to set out specific standards of conduct regarding the giving and receiving of gifts, entertainment and hospitality across Anglo American s Supply 3

4 Chain (this includes all Group and Business Unit Supply Chain employees, intermediaries and contractors that work in the Supply Chain environment). 1.3 Application This Procedure applies to all full time, part time and temporary employees within Supply Chain this includes both Group Supply Chain and Business Unit Supply Chain colleagues ( employees ). The definition of employees further extends to all persons that conduct business on behalf of Anglo American (also referred to as intermediaries) and Supply Chain contractors engaged by Anglo American It is the responsibility of all employees to read this Procedure in conjunction with the Business Integrity Policy It is acknowledged that many business units may have their own established Policies and Procedures which deal with gifts, entertainment and hospitality. The aim of this Procedure is not to replace what may already exist, but rather to create a minimum standard for Supply Chain employees. In instances where a business unit has an existing Procedure, the principle around application will be that the higher / stricter / more stringent Procedure shall always apply. As a general principle no employee may accept or receive any gift, entertainment, hospitality or other gratuity including donations from any supplier to Anglo American or bidder for Anglo American business. 1.4 Summary of Procedure For ease of reference, the table below provides a summary of the detail contained within this Procedure. Employees are encouraged to familiarise themselves with the full Procedure in order to ensure they understand Supply Chain s requirements. Type of gift, entertainment or hospitality offered 1. Corporate branded merchandise of modest value (not exceeding USD20) 2. Payment for or provision of modest, in-frequent meals or entertainment that is business related 3. Supplier pays for meals during periods of business travel 4. Attendance at supplier sponsored charity events 5. Attendance at bona-fide business functions 6. Cash or cash equivalent (e.g. gift certificates, loans, stock, stock options, bonds or items of redeemable value) Supply Chain Position Acceptable with no need for declaration Acceptable with no need for declaration. Normal expense capture / re-imbursement processes apply. Acceptable only with prior Group Head of Supply Chain or SCLT approval Acceptable only with prior Group Head of Supply Chain or SCLT approval Acceptable only with prior Group Head of Supply Chain or SCLT approval Reference 2.6.1; ; Unacceptable

5 7. Gifts of alcoholic beverages Unacceptable Offers of personal favours or other treatment of a preferential Unacceptable nature 9. Payment of expenses for shopping trips or non-business Unacceptable related travel 10. Non-business related supplier events (e.g. golf days, hunting trips, Unacceptable etc.) 11. Gifts to, or the provision of entertainment for, spouses, family members or other individuals having a close personal relationship with the employee Unacceptable, unless with the prior written approval of the Group Head of Supply Chain only Payment of accommodation or travel costs even as part of a business trip. 13. Holiday or weekend accommodation of any nature. 14. Adult entertainment, or any sort of activity involving lewd behaviour. 15. Invitations to events including sports events and concerts. 16. Product samples for personal use Unacceptable Anglo American shall request a breakdown of all costs and pay for the employee s attendance Unacceptable Unacceptable Unacceptable, unless with the prior written approval of the Group Head of Supply Chain only Unacceptable All other exceptions which are not explicitly included above would need to be discussed with and require written approval from the Group Head of Supply Chain or a SCLT member prior to acceptance. 1.5 Scope This Procedure applies to all Supply Chain employees as defined in Section above and is applicable from 01 December

6 2. GIFTS, ENTERTAINMENT AND HOSPITALITY 2.1 Principles No employee may accept or receive any gift, entertainment, hospitality or other gratuity from any existing supplier to the Anglo American Group or bidder for Anglo American business. Similarly, no employee should offer any gift or gratuity to a supplier without the requisite written authorisation from the Group Head of Supply Chain or a member of the Supply Chain Leadership Team ( SCLT ) as referenced in Appendix 1. This includes gifts given at annual celebrations (e.g. Christmas and the Chinese New Year). When considering gifts, entertainment and hospitality, the following guidelines must always be taken into account: All gifts, entertainment and hospitality whether offered, declined or accepted must be declared Entertainment and hospitality offered are not lavish or disproportionate, that the value is reasonable In cases of legitimate business functions, the employee must declare the entertainment or hospitality offered, in advance of the event, to a member of the SCLT seeking permission to attend The circumstances and value of the gift do not create an appearance of bad faith or impropriety, and could not reasonably be misunderstood by the recipient or others as a bribe, even in hindsight The frequency of gifts, entertainment or hospitality provided to the same recipient would not create the appearance of impropriety Care should be exercised when accepting or using advertising or promotional / branded items and participating in activities that could give the appearance of promoting one supplier over another During sourcing events (e.g. contract and price negotiations) NO gift, entertainment, hospitality or other gratuity is acceptable regardless of some of the exceptions provided for within this Procedure. 2.2 Gifts No employee may accept or receive any gift from an existing supplier to the Anglo American Group or bidder for Anglo American business All gifts offered to Anglo American employees are to be rejected and must be declared as per section 3.1 of this Procedure In instances where it would be disrespectful to decline, or where gifts are received by unsolicited mail or delivery: these must be declared as per section 3.1 of this Procedure, these must then be disposed of in accordance with the business unit s practices The responsibility of informing the supplier / potential supplier about the Anglo American Gift, Entertainment and Hospitality Procedure rests with the employee who is offered or accepts a gift (refer to Appendix 2 for a sample communication letter that should be sent to suppliers) The responsibility of informing a senior manager or member of the SCLT of the offer of a gift lies with the employee and should be done as soon as reasonably practicable. 6

7 2.3 Entertainment We do acknowledge the need to foster and maintain good relationships with suppliers and are empathetic to the cultural nuances which may exist in certain geographies. Entertainment is an area which is under increased scrutiny and as a Supply Chain community we need to be aware of the impression of impropriety that excessive entertainment (including supplier lunches) may create As a general rule, no employee should accept or receive any entertainment from any existing supplier to the Anglo American Group or bidder for Anglo American business In instances of sanctioned business meals, the Anglo American employee will pay for business related meals and recoup expenses in accordance with the standard reimbursement Procedure Tickets or invitations to attend sports events and concerts must never be accepted, including free tickets to such events regardless of whether the event occurs during business time or private time (i.e. leave should not be taken to avoid this guideline) Any exceptions to the above will require prior written approval from the Group Head of Supply Chain. 2.4 Hospitality (including attendance at business functions) No employee may accept or receive any hospitality (including payment for travel or accommodation, etc.) from any existing supplier to the Anglo American Group or bidder for Anglo American business. We do acknowledge the need to foster and build on our supplier relationships and have detailed a few exceptions to this position in section 3.3 where the value or intention behind an offer will not create an impression of impropriety. Attendance at non-business related supplier events (e.g. golf days, hunting trips, etc.) is not permitted, under any circumstances, regardless of whether the event occurs during business time or private time (i.e. leave should not be taken to avoid this guideline). 2.5 Gratuities (including donations) No employee may accept or receive any gratuity or donation, including donations made to a charity on behalf of the employee or an employee interest, from any existing supplier to the Anglo American Group or bidder for Anglo American business. 2.6 Exceptions to the recording of gifts, entertainment and hospitality This Procedure provides guidance on the receipt and offering of gifts, entertainment or hospitality and should be used as the basis for behaviour of all employees. It is acknowledged that there are instances where the recording of modest or infrequent gifts, entertainment or hospitality may not be required, these are detailed below: Corporate branded merchandise of modest value (not exceeding USD20 or its equivalent in any other currency) may be occasionally accepted or given (e.g. pens, key fobs, lanyards, note pads) provided the items are legitimately part of an Anglo American or supplier organised event / conference. It is recommended that these items are also disposed of in accordance with the business unit practices as utilising a supplier branded piece of merchandise puts into doubt the objectivity of our procurement and supplier management processes. 7

8 2.6.2 Modest, in-frequent meals that are business related (e.g. the meal takes place in the course of a meeting or another occasion, the purpose of which is to hold bona fide business discussions) to a reasonable value Where employees are hosted at supplier or potential partner s offices for bona-fide business discussions and a meal or modest entertainment is provided through the inhouse caterer In instances where an employee is travelling with a supplier or potential partner over an extended period, payment of meals may be alternated between the employee and other party in equal proportions provided the cost of meals are similar in value Attendance at supplier sponsored charity events are permitted only on condition that Anglo American makes a donation to the charity Attendance at bona-fide business functions is subject to the approval criteria as outlined in section All other exceptions which are not explicitly included above would need to be recorded and will require the written approval of the Group Head of Supply Chain or an SCLT member prior to acceptance. 2.7 Unacceptable Practices The receipt of certain types of gifts, entertainment and hospitality are never permissible these include: Any gift of cash or cash equivalent (e.g. gift certificates, loans, stocks, stock options, bonds or items of redeemable value) Any gift of alcoholic beverages such as bottles of wine and spirits, regardless of its value Offers of personal favours or other treatment of a preferential nature (for example goods or services free of charge or at artificially reduced prices) compared to those commonly available in the marketplace Payment of expenses for shopping trips (e.g. offers to cover personal shopping expenses while travelling) Non-business related supplier events (e.g. golf days, hunting trips, etc.) Gifts to, or the provision of entertainment for, spouses, family members or other individuals having a close personal relationship with the employee. These can only be accepted with the prior written approval of the Group Head of Supply Chain Payment of accommodation or travel costs, of any nature, while travelling locally or abroad including business related travel Holiday or weekend accommodation of any nature Adult entertainment, or any sort of activity involving lewd behaviour Invitations to extravagant events including sports events and concerts Product samples that are either offered by suppliers or requested by the Supply Chain employee for personal use. 8

9 3. DECLARATION PROCEDURE 3.1 Declaration of gifts and communication with the offering party With the exception of items detailed in 2.6 of this Procedure, all gifts, entertainment, hospitality and donations that are accepted must be disclosed within 5 business days and registered in the Gifts, Entertainment and Hospitality Register located in the Supply Chain space on Eureka! Where gifts have been received by unsolicited mail or delivery, the recipient should return the item to the sender and (copying the BusinessIntegritySC@angloamerican.com address for transparency) informing them of Anglo American s Supply Chain Gifts, Entertainment and Hospitality Procedure within 7 business days or as reasonably practicable in the event of travel (refer to Appendix 2 for a sample supplier communication letter). If it is not practical to return the item it should be disposed of in accordance with Where gifts, entertainment, hospitality and donations have been offered and declined, the employee shall send a notification to the supplier (or giver) and copy the BusinessIntegritySC@angloamerican.com address for transparency (refer to Appendix 2 for a sample supplier communication letter) within 7 business days. Following the transmission of the notification, there is no need for further declarations All gifts are to be disposed of or donated in accordance with business unit practices or as advised by a member of the SCLT. Any gifts that are disposed of or donated must be recorded in the Gifts, Entertainment and Hospitality Register located in the Supply Chain space on Eureka! 3.2 Declaration of entertainment and hospitality Modest, in-frequent meals that are business related (e.g. the meal takes place in the course of a meeting or another occasion, the purpose of which is to hold bona fide business discussions) and the value does not exceed USD20 or its equivalent in any other currency need not be declared In instances where employees are hosted at supplier or potential partner s offices for bona-fide business discussions, and a meal or modest entertainment is provided through the in-house caterer, there will be no duty for the employee to declare or record this meal. Similarly where employees host suppliers or potential partners at Anglo American premises, and a meal or modest entertainment is provided through the in-house caterer, there is no duty to declare meals or modest entertainment provided In instances of sanctioned business meals, either locally or when an employee travels, the employee will pay for business related meals and recoup expenses in accordance with the standard re-imbursement Procedure In instances where an employee is travelling with a supplier or potential partner over an extended period, payment of meals may be alternated between the employee and other party in equal proportions without a need for declaration of the hospitality provided that, on balance, the meals are similar in value. Where the payment is not done proportionally, this must be registered in the Gifts, Entertainment & Donations Register found in the Supply Chain space on Eureka! 9

10 3.3 Approval process for hospitality (including business functions) All hospitality with the exception of meals as provided for in or business functions as provided for in below are to be rejected Anglo American understands the importance of working collaboratively with our suppliers and potential partners and encourages employee participation at bona-fide business functions. Attendance at business functions is subject to the following criteria: Prior approval for attendance must be obtained from an appropriate Supply Chain Leadership Team (SCLT) member. The value of the ticket must not be extravagant. The supplier must be in attendance. The supplier must be an existing supplier. Other customers or business partners must also be in attendance. The funding of any travel and accommodation costs for the supplier and employee must be born respectively by the supplier and Anglo American. 3.4 Capture and verification of Declaration Procedure It remains the responsibility of the employee to ensure that the relevant information is captured electronically in the Gifts, Entertainment & Donations Register upon accepting a gift, entertainment, hospitality or donation The Supply Chain Leadership Team (listed in Appendix 1) is responsible for reviewing the register on a quarterly basis as a minimum. 3.5 Maintenance of Declaration Register The management and maintenance of the Gifts, Entertainment & Donations Register is the responsibility of the nominated Supply Chain Business Integrity Implementation Manager (listed in Appendix 1) A monthly report will be produced by the Supply Chain Business Integrity Implementation Manager which will trend the nature, frequency and value of declarations. 3.6 Transparency of Procedure In order to ensure proper application of the Supply Chain Gifts, Entertainment and Hospitality Procedure, a copy of this document will be available internally on Eureka! and on the external Anglo American Group website. 3.7 Consultation on Procedure Employees should consult with the Supply Chain Business Integrity Implementation Manager or member of the Supply Chain Leadership Team (or other designated responsible person as detailed in Appendix 1) regarding any items that extend beyond the scope of this Procedure or where they are in doubt as to the applicability of this Procedure. 3.8 Communication with supplier In cases where an employee is offered or receives a gift, entertainment or hospitality, the recipient is required to decline the offer and send a courtesy note which: thanks the supplier for the consideration, and outlines the principles in Supply Chain Gifts, Entertainment and Hospitality Procedure (refer to Appendix 2 for a sample letter that can be sent to suppliers). 10

11 3.9 Provision of gifts, entertainment or hospitality to suppliers There are instances, where in the interest of respecting cultural practices and fostering relationships with suppliers, the offering or reciprocation of gifts and offering of appropriate hospitality may be expected, in these cases: Written permission must be sought by either the Group Head of Supply Chain or an SCLT member prior to the provision of the gift or hospitality Written records of authorisation for the gifts provided or offered to suppliers must be maintained by the employee who has made the offer, and this must be sent to the address for transparency Care should be taken to respect the Policy of the potential recipient regarding the receipt of gifts, entertainment and hospitality prior to the offer being made It is the responsibility of the Anglo American employee to ensure that the recipient of the gift or entertainment is made aware of the Supply Chain Gifts, Entertainment and Hospitality Procedure. 11

12 4. CONTRAVENTION OF THE PROCEDURE 4.1 Breach of this Procedure This Procedure is introduced to ensure that employees are aware of the rules regarding accepting or donating gifts, entertainment, hospitality and donations. Anglo American provides appropriate guidance and governance on this Procedure in order to reduce potential reputational risk introduced through accepting or offering gifts, entertainment and hospitality in order to safeguard both Anglo American s and the supplier s interests As such, breach of this Procedure is considered a serious offence and will result in disciplinary action in accordance with disciplinary Procedures including those outlined within the Business Integrity Policy We are committed to reporting all instances of corruption and other forms of dishonesty to the relevant authorities and to facilitating criminal action against the individual(s) concerned and we will seek redress for any losses arising from such actions In addition to potential civil and criminal action being brought about in the event of a deliberate breach of this Procedure, disciplinary action may involve further sanctions up to and including summary dismissal If employees believe that their own or someone else s actions have, or may have contravened the Procedure, they should advise their line manager or fraud line (e.g. Speak Up) at the earliest opportunity. 4.2 Speak Up The Speak Up facility provides a confidential and secure means for our employees, contractors, suppliers, business partners and other external stakeholders to report and raise concerns about conduct which may be contrary to our values and standards. Speak Up provides telephonic, and website contact operated by independent companies in the regions that Anglo American operates. The facility is available 24 hours a day, seven days a week and includes translation services. A link to the Speak Up facility is provided at the bottom of every page on Eureka! Speak Up can also be contacted via or by ing anglocorp@anglospeakup.com. Anglo American will not tolerate any form of retaliation against employees or suppliers raising concerns in good faith. Allegations of retaliation against or harassment or intimidation of an employee or supplier by others as a result of a call to Speak Up will be investigated and appropriate action taken, including disciplinary action up to and including dismissal of the employee responsible for reprisals. 12

13 5. RELATED GLOBAL POLICIES The hyperlinks below identify the relevant Policies and other references that should be read in conjunction with this Procedure: 5.1 Business Integrity Policy. It is incumbent on employees to ensure that they familiarise themselves with this Group Policy, which can be found in the Group Policies space on Eureka! 5.2 An external version of the Policy is available for suppliers and other audiences on the following link: 6. CONTACT INFORMATION AND PROCEDURE CLARIFICATION If you have any queries, please contact the Supply Chain Business Integrity Implementation Manager or a member of the Supply Chain Leadership Team (or other designated responsible person as detailed in Appendix 1) regarding any items that extend beyond the scope of this Procedure or where there is doubt as to the applicability of this Procedure. 7. DOCUMENT AND VERSION CONTROL Nature of the revision from the previous version Version Revision Description Revision Date Revision Author Ver1 Ver2 Supply Chain Procedure Gifts, Entertainment & Donations First Version. Supply Chain Procedure Gifts, Entertainment & Donations Second Version 01/02/2010 Hannes Britz Linda Wedderburn 04/12/2013 Wandile Mashoba Brandon Knight Ashlin Ramlochan 13

14 APPENDIX 1: LIST OF KEY CONTACTS WITHIN SUPPLY CHAIN Bruce Crane (UK) Group Head of Supply Chain / Supply Chain Business Integrity Champion bruce.crane@angloamerican.com Supply Chain Leadership Team Refer to the Supply Chain Organisation Chart in the Supply Chain space on Eureka! for further information Tijen Diraz (South Africa) Supply Chain Business Partner: HR tijen.diraz@angloamerican.com David Netshieneulu (South Africa) Supply Chain Business Integrity Implementation Manager david.netshieneulu@angloamerican.com 14

15 APPENDIX 2: SAMPLE NOTE TO BE SENT TO SUPPLIERS UPON OFFER OF A GIFT, ENTERTAINMENT, HOSPITALITY OR DONATION A N Other, Company Name Building Name/Street Name Town/City County/Postcode/ Country 1st Month Year Dear Sir/Madam RE: Anglo American s Gifts, Entertainment and Hospitality Procedure Thank you for the kind consideration of the gift [state name of gift, entertainment, hospitality if known], which was received on [date and detail]. The gesture is greatly appreciated and I value the effort that you have taken to ensure delivery of this to me. Within the environment in which we operate, we acknowledge that the offering or providing of gifts or entertainment may be customary and seen as a sign of goodwill. It is however with regret that I respectfully decline the gift in accordance with our global Gifts, Entertainment and Hospitality Procedure, which was established within Anglo American in As an organisation we are committed to the fostering of good relations with all of our stakeholders and work with our suppliers to ensure that our processes are transparent, and applied equally and consistently throughout our organisation. For future reference, I kindly request that you do not offer any further gifts, entertainment, hospitality or donations as a token of your appreciation or goodwill. I am bound by our Corporate Policies and Procedures, and have provided a link below to the Anglo American s Business Integrity Policy, for your records. I look forward to building our relationship and invite you to share any questions or comments about our Policy or Procedures, either with myself or our Supply Chain Business Integrity team on BusinessIntegritySC@angloamerican.com, who are copied on this communication. Sincerely Name Surname Job Title T: +00 (0) E: nsurname@angloamerican.com 15