Gifts and invitations
The Group does not tolerate any form of corruption, whether public or private, active or passive, direct or indirect. The Group is committed to conducting its business honestly, not to improperly influence a business partner, an official or any other natural or legal person.
In business relationships, the exchange of gifts or hospitality can affect the independent judgment of employees in their dealings with external partners (clients, suppliers, other types of third parties). Likewise, the Group has undertaken not to accept any hospitality or invitation which could harm its reputation and has published a Group Directive in this matter.
Definitions
Unreasonable gifts and entertainment may constitute bribes.
Group policies apply to gifts and entertainment:
- Given or received;
- Directly by an employee or indirectly by a third party representative of the Group;
- Directly to a Group employee or indirectly to a member of their family.
A third-party representative is any natural or legal person who acts on behalf of the Group. For example: lobbyists, lawyers, tax consultants, sales representatives, or intermediaries. All inappropriate actions and decisions of these external third parties could be attributed to the Group. Their behavior should be in close accordance with this Code and any policies that apply to their activities.
Guiding Principles
As a general principle, The Michelin group does not prohibit gifts and invitations.
Giving or receiving a gift or an invitation does not, as such, constitute an act of corruption. However, it may constitute corruption if:
- There is an undisclosed party involved
- The purpose of the gift or invitation is to influence professional judgment, to induce a person not to act in his or her company’s interests or to attempt to obtain an advantage from him or her.
The Group has therefore undertaken not to accept or offer any gift and/or hospitality that could damage its reputation.
As a result, any employee or third-party representative of the Group is prohibited from accepting a gift, invitation or any other advantage that could affect their judgment, impartiality or independence and cause them not to act in the best interests of the group.
The same applies to gifts, invitations and other benefits offered by an employee or a third-party representative of the Michelin Group.
Each employee or third-party representative must adhere to the Group gifts and invitations policy as well as any Region (or other) applicable policy.
Receive
a gift or invitation
Group employees and members of their families, and third-party representatives of Michelin, must, as far as possible, refuse gifts and invitations from a supplier, customer or third party.
A gift or an invitation could be accepted if it meets the following criteria:
- Complies with this Code and applicable gift policy(ies);
- Of reasonable value;
- Occasional;
- For a legitimate business purpose;
- Authorized by a specific policy, approved by the relevant persons identified in the internal policy and registered in the applicable gift register.
In case of doubt it is recommended to politely refuse the gift.
Give
a gift or invitation
Gifts and hospitality that could inappropriately influence the professional judgment of the recipient are prohibited.
A gift or an invitation could be offered if it meets the following criteria:
- Complies with this code and applicable gift policy(ies);
- Of reasonable value;
- Occasional;
- For a legitimate professional purpose;
- Authorized by a specific policy or approved by the relevant persons identified in the internal policy and registered in the applicable gift register.
When in doubt, it is recommended to avoid giving gifts.
Do: I must
- Know and comply with the Group Gifts and Invitations policy, including thresholds and acceptability criteria
- Explain to business partners the applicable gifts and invitations policy, to avoid any misunderstanding.
- Speak with my manager and the Legal / Compliance Department if in doubt.
Don't: I must not
- Accept gifts and invitations that could influence my behavior in the practice of my professional activities.
- Give or accept gifts or entertainment of unreasonable value.
- Give or accept gifts or invitations without respecting the registration and authorization process defined in the Group Gifts and Invitations policy.
Practical case 1
Your Region's gift policy allows employees to accept promotional gifts valued at less than a certain amount. A supplier offers you, as a buyer, a beautiful headphone personalized with the company’s logo, the value of which could exceed the amount authorized by the gift policy. You don't want to offend the supplier; can you accept this gift?
You must inform your manager or your Region Compliance Officer. You must register it in the gift register if its value exceeds the amount authorized and follow the process defined in the Group Gift and Invitation policy before accepting the gift.
Practical case 2
You are the Key Account Manager for X, an important customer. Over the past six months, your business relationship has deteriorated. Your customer's purchasing manager has brought this to your attention. You want to invite your customer to dine in a 2-star Michelin restaurant in an attempt to maintain the account. Is this practice allowed?
You should consult the Group Gifts and Invitations policy and discuss it with your manager. While occasional meals of reasonable value are tolerated, a dinner in a Michelin-starred restaurant could be considered to be of an unreasonable value. In case of doubt, consult the Legal / Compliance Department.
