Anti-Bribery and You!

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Introduction
Introduction
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Welcome to this training course on EY's Anti-Bribery Global Policy and related guidance.

Here you'll look at the specific risks we can face and how you should take action to support compliance.

Learning objectives:

 Understand EY's anti-bribery stance and its connection to EY values

 Identify the key risks we can face at EY and how to mitigate them

 Take appropriate action when you encounter circumstances of suspected bribery

 Identify sources of information and support

 Recognize the consequences of non-compliance

Select each icon above to learn how to use this course and to begin the session

This course should take approximately 45 minutes to complete.

This course will feature videos. For the best experience, ensure that your audio is working. You can pause
the videos at any time by simply clicking pause in the control panel.

If you are unable to use audio, you can opt to turn it off by clicking on the audio icon in the top right corner, and
then follow the text.

1. To navigate through the course, select the next and back arrows

2. If a page has an exercise, the next arrow will not appear until you have completed the exercise
 3. Don't worry if you get interrupted and close the course before completing it, as you'll automatically
resume at the point where you left off when you access the course next

If you experience difficulty in using a mouse or would like to use a screen reader, select the accessible mode
now or at any point in the course from the link at the bottom of the page.

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Anti-bribery basics

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Anti-bribery basics

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Anti-bribery basics

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Video: Anti-bribery basics

Video: Anti-bribery basics
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Video:

What is bribery? You may know it by another name. A kickback. Favor. Grease money. Or something else.

Here's how we define it in our Anti-Bribery Global Policy...

"...the offering, promising, giving, receiving, soliciting or accepting of a financial or other advantage, or any other
thing of value, where the intention is to influence how a person in a position of trust performs a public,
commercial or legal function."
Bribery is wrong.

People may use many different excuses to justify bribery - there may be complacency or ignorance, they may
cite cultural differences or adopt a siege mentality, even claiming they had no choice.

But none of these provide any defense under the law.

"Everyone does it"

"It's the only way we can compete"

"It's just how they do business in..."

"We didn't ask for it, so that's OK"

"We had no idea our agent was doing that"

"I didn't know it would be seen as such"

"Without bribes, we won't win the business"

Bribery can never and must never be justified.

It undermines growth and development, and prevents fair competition.

And importantly, it is contrary to EY values.

"Corruption undermines growth and development... discourages investment and distorts international
competitive conditions"
Angel Gurría, Organisation for Economic Cooperation and Development (OECD)
Exercise 1.
In what parts of the world is there a risk of bribery?
Select an option to proceed

1. Only in developed countries

2. Only in developing countries
3. Only in countries where there is a more lenient anti-corruption regime
4. Everywhere

Solution Exercise 1: 4

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Video: Anti-bribery basics part 2
Video: Anti-bribery basics
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Video:

Bribery and corruption are prohibited and criminalized in most countries across the world...

The precise definition of bribery and scope of the prohibitions may vary from country to country. Because we
often work in other jurisdictions, in multi-jurisdictional teams, and may be seconded by Member Firms in other
countries, the anti-bribery laws of more than one country may be applicable.

Some of these laws - such as the Foreign Corrupt Practices Act (FCPA) - are extra-territorial in nature, which
means that organizations and individuals may face prosecution for bribes paid anywhere on our behalf.

In accordance with our Anti-Bribery Global Policy, you must never offer or accept bribes.

Any direct or indirect offer, payment, giving, soliciting or acceptance of bribes in any form, including facilitation
payments, by you when conducting EY business is strictly prohibited.

We must never give money or anything of value to anyone if this may suggest or give the impression that we
intend to influence official action or obtain a business advantage.
Many countries' laws focus on the bribery of public or government officials, broadly defined as any minister, or
elected or appointed official - such as members of the country's judiciary, legislature or civil service.

Exercise 2.
Who of the following can be classed as public officials?
Select all that apply and then submit

1. The CEO of a private company

2. The director of a state-owned utility
3. Members of the military, border or police services
4. Employees of national health or education services

Solution Exercise 2: 2,3,4

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Video: Anti-bribery basics part 3
Video: Anti-bribery basics
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Bribery can also occur in the context of the private sector and is equally prohibited by our policy.

Further, there may be additional offences in some countries for organizations that fail to prevent bribery or do
not have effective anti-corruption controls in place.

Video:

Colossal $3.5bn fine for Odebrecht SA and Braskem SA

Standard Chartered shares slump after bribery probe

Indeed, many of our clients require confirmation that we have adequate procedures in place to prevent bribery
in the course of their engagements.
Be in no doubt. If we are implicated or there is a perception of bribery, we would be exposed to significant
reputational damage...

Rolls-Royce fined £671m for bribery

...and the consequences would be serious for our organization and you personally.

We may face fines and even disbarment from certain government contracts, and our people would certainly
face internal disciplinary action.

For our organization:

 Significant financial penalties

 Litigation

 Reputational damage

 Being excluded from bidding for contracts

For you:

 Criminal prosecution, including fines and/or imprisonment

 Disciplinary action

 In some countries, claims for damages and disqualification from acting as a company director

It's vital that we always act ethically and within the law. You are expected to know and comply with our Anti-
Bribery Global Policy, whatever your role and jurisdiction.

Risks can arise through relationships with third parties. This training module will help you understand the types
of situations that are high-risk, and what you should do to mitigate them.
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Anti-bribery laws
Anti-bribery laws
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There are anti-bribery laws in most - if not all - of the countries in which we operate around the world:

The German Administrative Offences Act

The German Criminal Code

Extra-territorial effect

The Prevention of Corruption Act

The Indian Penal Code

The Anti-Unfair Competition Law of PRC

The PRC Criminal Law/Code

The Unfair Competition Prevention Act

The Japanese Criminal Code

APPOPEI

The Penal Code

Extra-territorial effect

The Corruption of Foreign Public Officials Act

The Criminal Code

Extra-territorial effect

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What if we get it wrong?
What if we get it wrong?
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There can be significant consequences for any organization that breaches anti-bribery laws, as these examples
show.

Standard Chartered shares slump after bribery probe

Shares in Standard Chartered have slumped after US authorities investigated alleged bribery at Maxpower Group, an
Indonesian power company controlled by its private equity arm.
Executives allegedly paid bribes to Indonesian officials between 2012 and 2015 in order to win contracts.

US authorities claim Standard Chartered failed to have adequate controls in place to prevent bribery.
Sep 2016

Rolls-Royce fined £671m to settle bribery case

Rolls-Royce, the engineering group, has been fined £671m to settle a long-running bribery investigation.

The company used middlemen or agents to pay bribes in 12 countries in return for landing lucrative contracts, often
disguising its payments as consultancy fees.
Jan 2017

Colossal $3.5bn fine for Odebrecht SA and Braskem SA

Two Brazilian firms - Odebrecht SA and Braskem SA - have agreed to pay a $3.5bn fine, one of the biggest ever for bribery.

Odebrecht paid bribes of $3.3bn to officials across three continents between 2005 and 2014, peaking at $730m in 2012 and
2013.

Its CEO is serving a 19-year prison sentence for corruption.

Dec 2016

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You make the call: Is it a violation or not?
You make the call: Is it a violation or not?
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Look at these examples and decide whether they violate our Anti-Bribery Global Policy or not.
Select an option to proceed

Exercise 3.
"No explanation is given anywhere in our records for this payment to a client"

1. Violation
2. No violation

Solution Exercise 3: 1
Exercise 4.
"Fees to agents were written down as commission or expenses"
 1. Violation
2. No violation

Solution Exercise 4: 1
Exercise 5.
"We took a client to a modest lunch so we could keep talking business - it was a one-off"

1. Violation
2. No violation

Solution Exercise 5: 2
Exercise 6.
"When a client requested an improper payment, I declined but didn't report it - I didn't want to embarrass him"

1. Violation
2. No violation

Solution Exercise 6: 1
Exercise 7.
"We attended a seminar and trade summit to learn about the latest trends in cybersecurity"

1. Violation
2. No violation

Solution Exercise 7: 2
Page 9

Our approach at EY

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Our approach at EY

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2
Our approach at EY

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Video: Setting the standard

Video: Setting the standard
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Video:

Lucy's just returned to the office after lunch, having seen someone she recognized from a rival firm eating at a
Michelin-star restaurant with a government official who Lucy's team are completing a proposal for...
"One of the partners from a rival firm was just lunching with the government official we are
working with on that new proposal"

Is there anything wrong with this?

A couple of weeks later, Lucy's colleague Jake is meeting a client, who makes him this generous offer.
"I have rented a 70m yacht for a cruise for this weekend. Why don't you and your family join
me?"

What do you think? Should he go? Would you?

These examples illustrate the dilemma we sometimes face when we give or receive hospitality or gifts to or
from others, or see others benefitting in this way.

Whether or not it's allowed will depend on the specifics of each case... but our intentions can so easily be
misunderstood, compromising our reputation.

Bribery goes against everything we believe in. At EY, our reputation and relationships are built on doing the
right thing and acting with integrity.

So, as well as being against the law, bribery is inconsistent with our Global Policy, our values and our Global
Code of Conduct.

Our Hospitality and Gifts Global Policy will help you identify circumstances where corporate hospitality or a gift
to a client may be acceptable, and when to take extra care.

You must never engage in activities that could erode others' trust in EY, impair our objectivity and
independence, or appear to contradict our values, or violate applicable laws.

Inappropriate hospitality or gifts may be misinterpreted as bribes, create a conflict of interest and potentially
damage our reputation.

Obviously, it doesn't mean that we can never accept or exchange any gift or hospitality from or with clients...

...but you'll need to use good judgment, discretion and moderation, and ensure activities are always driven by a
valid business purpose.

You may also need to complete specific approvals, so be sure to consult.

It's vital that you know where the boundaries are - what's acceptable and what isn't - and that you never put our
organization at risk.
Exercise 8.
Which of these are allowed and would not breach our Anti-Bribery Global Policy?
Select all that apply and then submit

1. Reimbursing the travel costs of job applicants

2. Arranging an internship for a politician's son
3. A promotional goodie bag obtained at an industry event
4. A five-star holiday for you and your family paid for by a supplier

Solution Exercise 8: 1,3

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Video: Setting the standard part 2
Video: Setting the standard
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Video:

How did you get on? To an extent, you can use your judgment here. Ask yourself, 'Would this look reasonable
or excessive to a rational and informed third party?'

An exclusive vacation for you and your family - in fact, any hospitality or gift which has no legitimate business
purpose - is always going to look bad for us...

...and having third parties or agents who somehow 'facilitate the deal' but charge exorbitant fees, well above
market rates... well, that looks suspicious too.
However, there are times when hospitality and gifts are completely legitimate, as long as they are in line with
EY policy.

Anti-bribery laws don't stand in the way of legitimate business courtesies or curtail our ability to build
appropriate business relationships.

Reasonable expenses - such as having lunch while you talk business, attending sporting events together or
exchanging token gifts - are acceptable if there's a valid business purpose and provided you use sound
judgment regarding the frequency of such activities. Remember that there may be separate country or regional
thresholds or approval policies, so check the rules for your jurisdiction.

We also encourage you to check all hospitality and gifts against our considerations.

First, who is the beneficiary?

We must be particularly sensitive with hospitality and gifts involving government officials or regulators. Such
interactions can easily be misconstrued and are discouraged.

Hospitality and gifts involving such individuals may also be subject to more stringent regional monetary
thresholds and approvals.
Second, be mindful that, although "reasonableness" and what is customary may vary by jurisdiction, due to the
nature of our business and our network, hospitality and gifts in one country may eventually be scrutinized in
another, according to a different standard.

Third, as well as monetary cost, consider the magnitude or desirability of the hospitality or
gifts.

Even if there's no actual cost or the actual cost is insignificant, if the hospitality or gift is highly sought after and
not widely accessible, it may be viewed as lavish and unreasonable regardless of its actual monetary value.
It can also be useful to think about how it might look to others if it became headline news...

Even if gift-giving is standard practice in one country, it can still look bad when scrutinized by others.

Generous 'perks' slammed by public accounts chair

Big 4 audit firms are in top 10 givers

And don't forget... it's not just about cash. There are many ways in which illicit payments can be concealed,
often via indirect rather than direct methods. For example, bribes may be disguised as donations, sponsorship,
false invoices, commission, business development charges, processing fees or expenses, or via other
deceptions, as this example shows.

Qualcomm fined for dubious hiring practices

Your colleague Cole makes this observation...
"Gift giving is common in many of the jurisdictions in which we operate"

"A failure to reciprocate could cause offence or embarrassment"

Exercise 9.
Do you see any problem with this?
Select an option to proceed

1. Yes, we have to be mindful of how hospitality and gifts appear to others in different countries
2. No, provided hospitality or gifts are allowed locally, there is no problem
3. No, it's good etiquette, so why not?
4. Not sure, it depends on the value of what's offered

Solution Exercise 9: 1

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Video: Setting the standard part 3
Video: Setting the standard
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Video:

Consideration should also be given to possible self-interest, familiarity or intimidation threats created by
activities relating to hospitality and gifts involving spouses (or equivalents) and dependents of EY personnel.

These too must be appropriate and reasonable, consistent with local custom and practice, and not seen as
excessive by a rational and informed third party.

"Would your daughter be interested in a summer internship?"

So when are we most at risk? We may face a number of risks - for example:

...Because of the work we do.

We may be offered inducements to overlook financial irregularities or malpractice...

Or given gifts by those seeking to influence our opinion or alter our reports.

Improper payments may sometimes be requested by key decision makers in return for awarding us a lucrative
contract.
We may face increased risks because of the places we do business, especially in high-risk territories...

Whenever we work with third parties, intermediaries or agents, there is also increased risk of us being involved
in scandals, even without our knowledge.

In order to protect us against the risk of bribes given indirectly, we must always conduct an appropriate due
diligence process when employing agents, consultants or other third parties, such that we are satisfied our fee
arrangements will not be used for bribes.

We must also be assured that agents, consultants and other third parties who act on our behalf understand and
comply with our Anti-Bribery Global Policy.

In all these situations, you'll need to stop and think first. Watch out for potential problems, and
consult your Regional Risk Management or Legal team if you have any doubts.
Our policies set out our rules and expectations, enabling you to make the right call.
The more familiar you are with them, the easier you'll find it to respond to risky situations and do the right thing.

If you are faced with a potential problem, raise it with your Regional Risk Management or Legal team
immediately.

Our policies, guidance and processes:

 Anti-Bribery Global Policy

 Hospitality and Gifts Global Policy

 Global Code of Conduct

 Global Procurement Policy

 EYG Independence Policy

 Local guidance on political donations and sponsorships

 BRET process

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Our Hospitality and Gifts Global Policy
Our Hospitality and Gifts Global Policy
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Hospitality
This refers to any form of social amenity, entertainment, travelling or accommodation, or invitation offered or
received.
Examples:

Meals: breakfast, lunch, dinner, cocktails, receptions

Hotel accommodation

Travel and trips by car, air or train

Seminars, conventions

Invitations to sporting, cultural or social events

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Our Hospitality and Gifts Global Policy (Cont'd)
Our Hospitality and Gifts Global Policy
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Gifts
This is any payment, gratuity, gratification, present, advantage (pecuniary or not), offered or received.
Examples:

Presents, goods, equipment

Personal discounts, commissions or other forms of remuneration

Cash (and equivalents e.g., gift vouchers), gratuity, payments, loans or advances

Stocks, shares, equities

Free services, e.g., insurance, tuition fees, repair/ improvement works, or any preferential treatment
 Charitable contributions

Access our Hospitality and Gifts Global Policy here.

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Our expectations of you

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Our expectations of you

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3
Our expectations of you

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Video: Your obligations and responsibilities

Video: Your obligations and responsibilities
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Video:
Our policies set out our rules and provide a framework to prevent bribery.

It is our collective responsibility to make sure that these rules are observed.

There are at least 4 actions you can take to address the risk of bribery.

First, be sure to read all our policies, so you know what is and isn't allowed. This knowledge is vital and will help
you be more confident in making the right decisions.

1. Read our policies, including:

 Anti-Bribery Global Policy

 Hospitality and Gifts Global Policy

 Global Procurement Policy

 EYG Independence Policy

Second, be alert. Watch out for red flags, such as exorbitant fees, higher-than-expected sales or agreements,
and other signs.

And take extra care with hospitality or gifts involving government officials or regulators, as there are often more
stringent regional monetary thresholds and approval processes.

2. Be alert:

 Red flags

 High-risk territories or situations

  Government officials or regulators

 Third parties

Third, act ethically and responsibly. Make sure that all payments are proper, and that there is a valid business
reason for any hospitality or gift, that it is reasonable and complies with local laws and regulations.

3. Act ethically and responsibly:

 Ensure all payments are proper

 Ensure hospitality and gifts are reasonable

 Ensure you comply with local laws

 Live up to our code of conduct

Always be guided by our Global Code of Conduct and 'do the right thing'.

Use and rely on sound judgment. There must always be a balance between building strong relationships, and
maintaining our professionalism, objectivity, integrity and independence.

'Do the right thing':

 Use sound judgment

 Strike the right balance

Forth, be proactive. The risks are particularly high when working with agents and third parties. If they get it
wrong, we can't claim we didn't know. The buck stops here and we can be responsible for whatever they do.
They hold our reputation in their hands.

So make sure we have their commitment, perform risk assessments and conduct due diligence on all clients,
vendors and other third parties joining EY before engagement.

4. Be proactive:

 Our zero-tolerance approach

 Check commitment

 Consult procurement

 Risk assessments

 Due diligence

Finally, if you have any concerns or see anything suspicious, then always consult others. Talk to your manager,
Legal or Risk Management. They're here to help.
Page 17

Scenarios
Scenarios

In this section, you'll be given a series of situations which you might face in your day-to-day business. You'll
have the opportunity to practice what you've learnt and check your understanding of the policies.
Select each scenario to learn more

Hospitality and gifts

Sponsorship and favors

Public or government officials

Facilitation payments
 Third parties and due diligence

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Hospitality and gifts

Hospitality and gifts

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Hospitality and gifts

Hospitality and gifts

Take a look at these examples before continuing.

KPMG auditor trades information for gifts

A Rolex watch, $10,000 bundles of cash, concert tickets, jewelry - just some of the many gifts that auditor Scott London
received in return for inside information on KPMG clients.

London passed on inside information about the clients he was auditing - including Herbalife Ltd and Skechers USA Inc - to his
long-time friend Bryan Shaw, who then traded stocks, netting them over $1.2 million in one deal alone.

Shaw was approached by the FBI after it became suspicious of his trades and agreed to a sting, in return for leniency.
London was jailed for 14 months.
Apr 2013
Deloitte and SAP fined $35 million for bribery
Deloitte and two of SAP's subsidiaries were fined $35 million for bribery after violating California's anti-corruption laws. The
two parties worked together on a $20-million public sector software project.

When deficient work came to light, Deloitte and the subsidiaries repeatedly offered Ernest Culver, the auditor-controller,
extravagant meals, payments and even a position at the company to sign off the deficient work and buy his silence.
Dec 2010

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You make the call: Is it allowed or not?

You make the call: Is it a violation or not?

Look at each comment and decide whether it is allowed or not.

Select an option to proceed

Exercise 10.
"Payments to an agent were recorded as business development charges"

1. Allowed
2. Not allowed

Solution Exercise 10: 2

You must never mischaracterize improper payment, such as commission payments, business development
charges or processing fees, as a legitimate expense. This is a clear breach of policy.
Exercise 11.
"We usually meet the cost of business lunches with clients. It's a matter of business courtesy"

1. Allowed
2. Not allowed

Solution Exercise 11: 1

You're allowed to offer or accept token gifts or hospitality in the normal course of business, provided they are
below our threshold.
Exercise 12.
"We spent considerable leisure time with our audit client, even going on vacation with them"

1. Allowed
2. Not allowed

Solution Exercise 12: 2

Leisure time on audit engagements should be limited in duration and frequency, so as to appear appropriate to
a reasonable and informed third party. Vacations by Partners, Principals, Executive Directors and Directors
who are defined as a "covered person" with audit clients are not allowed.
Exercise 13.
"I'm pretty sure Greg won us the contract when he took the client on that golf holiday"

1. Allowed
2. Not allowed

Solution Exercise 13: 2

We must never offer personal inducements to secure work. It goes against everything we believe in. Quid pro
quo arrangements are strictly prohibited.
Exercise 14.
"We paid for a taxi to take a client who was speaking at our event from the airport to the venue"

1. Allowed
2. Not allowed

Solution Exercise 14: 1

Clients and third parties are responsible for paying for their own travel to and from all EY hosted events, unless
they are speaking at an EY sponsored business event, such as a symposium or seminar.
Exercise 15.
"We gave a gift voucher of nominal value to a client, as she was retiring"

1. Allowed
2. Not allowed

Solution Exercise 15: 1

Anti-bribery laws don't stop you giving or accepting token gifts or courtesies. Just make sure they are
reasonable, within our limits and not frequent.

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Scenario: Perks of the job?

Scenario: Perks of the job?

Scenario: Perks of the job?
Oliver faces a dilemma. He's been working closely with a client to help improve their performance and sustain
improvements over time. However, he's uncovered significant problems within the organization. He's presented
his findings in a report to the board, but it's clearly unwelcome news.
Here's what happened next:
"We don't expect you to change the findings... we'd never do that... but could you just dilute it? We'd make it
worth your while."

Exercise 16.
How do you see this?
Select an option to proceed

What's the problem? We're there to work with clients and help them with whatever issues they face
1.
- it's entirely normal
2. It depends on the value of what's offered
3. It's not bribery but is a conflict of interest and anti-competitive
4. An offence is only committed if we actually accept some advantage
5. We're being offered incentives here for improper conduct, which is illegal

Solution Exercise 16: 5

This situation would seriously undermine our independence or objectivity. It's important to handle it in the right
way.

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Scenario: Perks of the job?
Scenario: Perks of the job?
Scenario: Perks of the job?
Oliver faces a dilemma. He's been working closely with a client to help improve their performance and sustain
improvements over time. However, he's uncovered significant problems within the organization. He's presented
his findings in a report to the board, but it's clearly unwelcome news.
Here's what happened next:
"We don't expect you to change the findings... we'd never do that... but could you just dilute it? We'd make it
worth your while."

If you're ever in the same situation, you must make our position clear by declining this outright. Under no
circumstances should we ever compromise our independence or objectivity by accepting inducements. Even if
Oliver doesn't benefit personally, it's still wrong. Making excuses suggests that he might be persuaded next
time. He must also report this to Legal.

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Scenario: The tender
Scenario: The tender
Scenario: The tender
EY is working closely with a long-standing pharma client to handle its proposed merger with a rival.
Emer is handling EY's relationship and gets on well with Colin, the client. Later that week, she gets a call from
him:

"I'm coming to Dublin for a few days. Can you meet me? Friday?"

Exercise 17.
What hospitality or gifts is Emer able to arrange in this situation?
Select an option to proceed

1. She could arrange a token gift to exchange with him

2. She must avoid all hospitality and gifts until after the work is done
3. She could take him on a sight-seeing tour around Dublin
She could book him into the best hotel in the city and offer to pay for his spouse - he's a good client,
4.
so surely he deserves the 'red carpet' treatment

Solution Exercise 17: 1

Emer will need to use sound judgment, balancing the need to maintain a strong relationship while also
maintaining our professionalism, objectivity, integrity and independence. She should consult others if in doubt.
Look at the context and avoid any perceived conflict of interest. Any perception of wrongdoing looks bad for EY.

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Stop and Think: Hospitality and gifts

Stop and Think: Hospitality and gifts

 Stop and Think: Hospitality and gifts

Do you know what the thresholds are for hospitality and gifts in your Member Firm (remember that
there may be different thresholds or approvals required for public officials)?

Do you take frequency, magnitude and desirability, as well as actual monetary value, into account in
respect of hospitality and gifts?

Do you know when it is appropriate to declare hospitality and gifts or get approval first? If not, consult
Legal

What approval processes apply?

How do you get the balance right between developing strong relationships and maintaining
professionalism, objectivity, impartiality and independence?
Return to scenario menu

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Sponsorship and favors

Sponsorship and favors

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Scenario: The sponsorship request
Scenario: The sponsorship request
Scenario: The sponsorship request
At a recent meeting, Beth's client makes these remarks:
"You people certainly have an impressive track record in sponsoring the arts. How
about sponsoring one of our events? In return, we'd make you our preferred tax
advisor"

Exercise 18.

How should Beth respond?

Select all that apply and then submit

1. Agree to it immediately - it sounds like the perfect partnership

2. No problem with this - we sponsor many events; it's one of the ways we support our community
We should not be appointed on the basis of favor for a favor. It sounds like the client is trying to
3.
gain leverage or undue influence here
4. Refer the matter to her Regional BMC, Risk Management or Legal team

Solution Exercise 18: 3,4

While EY does sponsor events and community initiatives, our decisions must be made independently. If you're
asked about sponsorship, it's important you consult appropriately so decisions can be made objectively and
impartially, without undue influence or pressure. Sponsorship matters should be discussed with your Regional
BMC, Risk Management or Legal team. All sponsorships will require BRET clearance and possible further
consultation with Independence.

Page 27
 Scenario: The favor

Scenario: The favor

Qualcomm fined for dubious hiring practices

Qualcomm, the telecoms company, has been fined $7.5 million to settle bribery charges over the hiring of so-called
'princelings', the children of influential and well-connected government officials.

The US regulator found that Qualcomm offered jobs to people between 2002 and 2012, despite them failing to meet the usual
hiring criteria.

It also gave financial support (including a $75,000 research grant) and countless gifts, expenses and entertainment to
influence officials at state-owned telecoms companies, disguising the payments as business expenses.
Mar 2016
Page 28
Scenario: The favor (Cont'd)

Scenario: The favor

Scenario: The favor
EY has secured a major contract with a global digital tech company. Shilpa and her team have been assigned
to oversee the project. One day, in conversation at the client's office, the client makes this request:

"It looks like you enjoy your work, Shilpa. Actually, maybe you could help? My son's just
left college and is looking for a suitable opportunity... Could you get him a job at EY?"

Exercise 19.
How should Shilpa respond?
Select an option to proceed

Make an immediate job offer there and then - great timing, she has a vacancy on her team and,
1.
what's more, it would help cement their bond
2. Decline and file a bribery report
3. Tell him to send in his CV to her so that she can discuss with HR
4. Tell the client where our vacancies are advertised and how to apply

Solution Exercise 19: 4

Appointments should be based on merit, so Shilpa must not influence the selection process in order to impress
the client. It's fine to explain our recruitment procedure or forward the resume to HR, but nothing else.
Promising the client a position or unnecessary involvement in the hiring process would give the wrong
impression, which could damage our reputation.

Page 29
Stop and Think: Sponsorship and favors

Stop and Think: Sponsorship and favors

Do we know how to handle requests for donations, sponsorship or favors?

Would you be comfortable explaining your actions to a regulator or law enforcement authority?

Do you know who to contact if you're not sure? When might you need to consult with regional BMC,
Risk Management or the Legal team?
Return to scenario menu

Page 30

Public or government officials

Public or government officials

Page 31
Scenario: The official
Scenario: The official
Scenario: The official
We're in the process of bidding for a government contract in Kenya.
Hamadi, who's handling our bid, gets a call from the official in charge. He makes this request:
"My wife runs a humanitarian charity providing clean water locally. Would EY consider
making a small donation? It's a worthy cause and I can see from your website that EY
has a strong community commitment"

Exercise 20.
How should Hamadi respond?
Select an option to proceed

1. Absolutely - I'll make the payment now!

2. Sounds good, but let me check with Risk Management and I'll get back to you
3. I'm afraid not. We're not allowed to make these kinds of donations

Solution Exercise 20: 2

We should be particularly sensitive about donations, hospitality or gifts to government officials and their
spouses, as such interactions can easily be misconstrued. Hospitality and gifts involving such individuals may
be subject to more stringent monetary thresholds and approvals. When in doubt, EY personnel should consult
with their Area/Region RM Leaders.

Page 32
Stop and think: Public or government officials

Stop and Think: Public or government officials

 Do you know who is classed as a public or government official (remember that there may be different
thresholds or approvals required for public officials)?

What precautions should be taken when dealing with public or government officials to ensure we
always act with integrity and professionalism?
Return to scenario menu

Page 33

Facilitation payments

Facilitation payments
Page 34
Scenario: Anika's cross border trip

Scenario: Anika's cross border trip

Scenario: Anika's cross border trip

On her way to see a client, Anika has a problem.

When she hands over her health card on arrival, the official tells her that she doesn't have the right vaccinations
to enter the country. Anika knows her vaccinations are up to date, but she is unclear about the exact nature of
the vaccinations being offered or indeed the condition under which they'd be administered.

"You'll need those shots before I can let you pass. If you'd like to
follow me and roll up your sleeve..."

Exercise 21.
When Anika objects, the official says he's going to seize her passport and her laptop and take her into
custody. Alternatively she can bypass this by paying a small fee.
What should Anika do in this situation?
Select all that apply and then submit
1. Make the payment, and report to region or country legal counsel
2. Decline to pay and demand to see his manager
3. Agree to the vaccination

Solution Exercise 21: 1,2

Anika is being asked for a "facilitation payment". Facilitation payments are still bribes and they are prohibited by
the Anti-Bribery Global Policy. The only exception is where payments are made for reasons of personal safety
and security of assets. Judgement of the situation needs to be made and she should escalate the matter - e.g.,
to the official's manager if she feels safe to do so.

Page 35
Stop and Think: Facilitation payments

Stop and Think: Facilitation payments

When are you likely to be asked for facilitation payments?

Are they ever permitted by EY?

Do you know what action to take if you're ever asked to make facilitation payments while on business?
What are our rules?
Return to scenario menu
Page 36

Third parties and due diligence

Third parties and due diligence

Page 37
You make the call: Is it a red flag or not?

You make the call: Is it a red flag or not?

Look at these examples and decide whether there is a red flag.

Select an option to proceed

Exercise 22.
"The invoices do not itemize sources and the transactions are not accurately charged."

1. Yes
2. No

Solution Exercise 22: 1

Exercise 23.
"There is an unexplained preference for a particular contractor who has control over all dealings with key
contacts."

1. Yes
2. No

Solution Exercise 23: 1

Page 38
Scenario: Special agent

Scenario: Special agent

Scenario: Special agent
When EY expands into new territories, the leadership team handling the acquisition experience some problems.

"Maybe language and cultural barriers are hampering our efforts?"

They make enquiries in other parts of EY. Andrew's name comes up again and again as the
preferred contractor to help.

"His fees are higher than market rates, but he certainly gets things done. He says it's all
down to his personal connections."

"He was recommended by another colleague and I must admit his results are impressive."

Exercise 24.
What action should the team take to reduce the risks of bribery when working with Andrew?
Select all that apply and then submit

1. Carry out due diligence checks to ensure everything is appropriate

Make sure he agrees to comply with our policy and signs up to our "Supplier Code of Conduct" and
2.
include anti-bribery clauses in his contract
3. We must trust him - we can always distance EY from what he does if things go wrong

Solution Exercise 24: 1,2

Due diligence must always be carried out when using agents, consultants or other third parties to verify that our
commissions or fees will not be used for bribes. Always conduct due diligence at the start of our relationship
with new contacts and at the start of new engagements with existing contacts.

Anyone connected to EY holds our reputation and liability in their hands. We must ensure that all those who
work on our behalf fully understand and comply with EY's Anti-Bribery Global Policy, and sign up to our
Supplier Code of Conduct. EY is accountable for everything they do, so we must get this right.

Page 39
Scenario: The prospect

Scenario: The prospect

Scenario: The prospect
Rajiv has had several meetings with a potential client that he's considering
an engagement with.

However, a story emerges that this same potential client has been involved
in bribery.

Exercise 25.
Rajiv asks his colleagues for advice. Here's what they say. Which advice is correct?
Select an option to proceed

1. If that's proven, we can't pursue this opportunity

2. It's not surprising, but we can't let it impact us proposing for this work
3. We'll need to conduct appropriate due diligence checks before accepting any engagement
4. We should inform the regulator of our concerns
 Solution Exercise 25: 3

We must always carry out due diligence checks on clients and anyone who works with us to safeguard our
reputation and values. As per our Global Code of Conduct, we reject all unethical and illegal business practices.

Page 40
Stop and Think: Third parties and due diligence

Stop and Think: Third parties and due diligence

Are you aware of the increased risks to EY when dealing with third parties, including clients, suppliers,
agents and contractors?

Do you carry out due diligence on all new and existing contacts, including clients, suppliers, third
parties, agents, contractors and anyone else who acts on our behalf?

Are there appropriate safeguards in place to ensure due diligence checks are up-to-date?

Do you know what action to take if you have concerns or see anything suspicious?

Do you recognize the importance of safeguarding our reputation and limiting our liability?
Return to scenario menu

Page 41

Conclusion

4
Conclusion

4
Conclusion

Page 42
Reporting concerns and whistleblowing
Reporting concerns and whistleblowing
42/44

If you have concerns or see anything which breaches our Anti-Bribery Global Policy or related policies, whether
internally at EY or during external interactions with clients, third parties, intermediaries, officials and suppliers,
it's essential that you speak up.

You should also make a report if you receive an improper request for payment or are offered an improper
payment in breach of our policies.
In some jurisdictions, there is a legal requirement to report suspicion or knowledge of an offence occurring.
Make sure you are aware of any such requirements.

In the first instance, contact Legal or Risk Management.

You can also report your concerns in confidence via our confidential whistleblowing hotline, the EY/Ethics
Hotline.
Click on the link to access our EY/Ethics Hotline
Click on the link to access our Global Code of Conduct
Anyone making a report of illegal or unethical behavior in good faith is protected from discrimination or
retaliation of any kind.
So, act responsibly and do the right thing.
Page 43
Dos and don'ts
Summary
43/44

Here's a reminder of the key points to remember in relation to the Anti-Bribery Global Policy:
Do

Know our policies and Global Code of Conduct and use them to help you make the right decisions

Ask yourself, "Are my actions legal?", "Is this the best choice?", "Does it reflect EY's values?" and "How
would this look to others?" - any perception of bribery can be damaging to EY

Watch out for red flags, such as high-risk territories or agents charging above-market rates

Conduct due diligence regularly, especially on third parties before engagement

Get advice from Legal or Risk Management if you're unsure or have any concerns

Don't

Accept or offer any significant gifts or other benefits without following our policies

Conceal bribes in overinflated expenses, false invoices etc., or allow anyone else to do so

Bypass any of our checks or controls, or assume that someone else has already carried out due
diligence

Page 44
Conclusion
Conclusion
44/44

Well done, you have completed this course.

You should now have a clearer understanding of our Anti-Bribery Global Policy and related guidance.
Click on the link to access our Anti-Bribery Global Policy
If you need further clarification or have any questions, reach out to your manager or contact your Risk
Management or Legal team.
To exit, click on the X at the top right of the course.