Gifts, Benefits, Prizes and Hospitality

Purpose and Scope

The purpose of this policy is to specify Skills Insight’s position on responding to offers of gifts, benefits, prizes and hospitality; and providing gifts, benefits, prizes and hospitality. All Skills Insight Directors, Executives, Employees, Contractors or related third parties engaged to represent Skills Insight must adhere to this policy and procedure.

This policy is intended to support individuals and Skills Insight to avoid conflict of interest and maintain high levels of integrity and public trust. It applies to all offers of gifts, benefits, prizes and hospitality received by, and/or offered by Skills Insight, its directors, executives, employees or contract agents in the course of undertaking duties for and on behalf of Skills Insight.

This Policy aligns with Principle 9 of the Australian Institute of Company Directors Not-for-Profit Governance Principles which have been adopted by Skills Insight JSC in developing all governance policies.

This policy has been established on the foundation of Skills Insight values, behaviours and strategies and all actions must be consistent with them. In the event of any conflict between this policy and the values, behaviours and strategies of Skills Insight, we request that you promptly notify the CEO for resolution.

Policy

This policy and procedure has been developed in accordance with the requirements outlined in the minimum accountabilities for managing gifts, benefits, prizes and hospitality issued by the Australian Charities and Not-for-profits Commission.

Principles

Skills Insight is committed to and will uphold the following principles when applying this procedure:

Public interest: individuals have a duty to place the public interest ahead of their private interests when carrying out their duties. They are not to accept gifts, benefits, prizes or hospitality that could raise a perception of, or actual, bias or preferential treatment. Individuals must not accept offers from those about whom they are likely to make business decisions.

Accountability: individuals are accountable for:

declaring all non-token offers of gifts, benefits, prizes and hospitality;
declining non-token offers of gifts, benefits, prizes and hospitality, or where an exception applies under this procedure, seeking approval to accept the offer; and
the responsible provision of gifts, benefits, prizes and hospitality.

Risk-based approach: Skills Insight through its policies, procedures, processes and Audit & Risk and Board will ensure that gifts, benefits, prizes and hospitality risks are appropriately assessed and managed. Managers must ensure that they are aware of the risks inherent in their team’s work and functions and monitor the risks to which their direct reports are exposed.

Definitions

Benefits – include preferential treatment, privileged access, favours or other advantage offered to an individual. They may include invitations to sporting, cultural or social events, access to discounts and loyalty programs, access to equipment or machinery for personal use and promises of a new job.

Bribe – an inducement given or promised to influence decisions, actions or performance.

Conflict of interest – a situation that has the potential to undermine the impartiality of an individual because of the possibility of a clash between the individual’s private interests and company duties. Conflicts of interest may be actual, potential or perceived.

Gifts – free or heavily discounted items and any item that would generally be seen by the public as a gift. These include items of high value (e.g. artwork, jewellery, or expensive pens), low value (e.g. small bunch of flowers) and consumables (e.g. chocolates).

Prizes – benefits gained via the concept of winning via a random process such as – business card draws, free raffles, door prizes and promotions. Quite often these “prize draws” are not registered competitions and the validity of the “winner” as opposed to the “loser” is unknown.

Hospitality – the friendly reception and entertainment of guests. Hospitality may range from light refreshments at a business meeting to expensive restaurant meals and sponsored travel and accommodation.

Legitimate business benefit – gifts, benefits, prizes and hospitality accepted or provided for a business purpose, in that it furthers the conduct of official business or other legitimate goals of Skills Insight, the public sector or State.

Register – a record of all declarable gifts, benefits, prizes and hospitality over $50. It records the date an offer was made and by whom, the nature of the offer, its estimated value, the raising of any actual potential or perceived conflicts of interest or reputational risks and how the offer was managed.

For accepted offers, the register details the business reason for acceptance and the officer approving the acceptance. The register is maintained by the Executive and reviewed annually by the Board.

Token Offer – an offer of a gift, benefit or hospitality that is of inconsequential or trivial value to the person making the offer and the individual. It may include promotional items such as pens and note pads, and modest hospitality which would be considered a basic courtesy, such as refreshments offered during a meeting or a standard business dinner.

Whilst the primary determinant of a token offer is that it would not be reasonably perceived within or outside the organisation as influencing an individual raising an actual, potential or perceived conflict of interest, it cannot be worth more than $50.
If token offers are made often by the same person or organisation, the cumulative value of the offers, or the perception that they may influence the recipient, may result in the offers becoming non-token.

Non-token offer – an offer of a gift, benefit, prize or hospitality that is, or may be perceived to be by the recipient, the person making the offer or by the wider community, of more than inconsequential value. All non-token offers, if accepted must be declared.

Procedure

Employees, directors, executives, contractors, and third parties engaged to represent Skills Insight must exercise the utmost care with respect to offers of gifts, benefits, prizes and hospitality.

Individuals must:

Not seek or solicit gifts, benefits, prizes or hospitality for themselves or others and refuse all offers of gifts, benefits, prizes and hospitality that:
are money, items used in a similar way to money, or items easily converted to money;
give rise to an actual, potential or perceived conflict of interest;
may adversely affect their standing or which may bring Skills Insight or the public sector into disrepute; or
are non-token offers i.e. over $50 of value without a legitimate business benefit.
Declare all non-token offers of gifts, benefits, prizes and hospitality accepted on Skills Insight’s register, and seek written approval from their manager to accept any non-token offer over the value of $50.
Refuse bribes or inducements and report inducements and bribery attempts to the CEO or the Executive as soon as practicable. Criminal or corrupt conduct will be reported to Victoria Police or the Independent Broad-based Anti-corruption Commission (IBAC).

Reporting offers of Gifts, Benefits, Prizes and Hospitality

What do I need to report and have entered into the register?

You must report and have pre-authorised via the Gifts, Benefits, Prizes and Hospitality Declaration:

All non-token offers, if considering accepting of gifts, benefits, prizes or hospitality.
Token offers if they are given or received on a regular or ongoing basis that would cumulative be worth more than $50.

How do I report?

You must complete an online declaration form via the Skills Insight Intranet. The declaration form is available at the end of this policy.

Details to be provided include:

the date that the offer was made;
who made the offer;
if the person or organisation making the offer is a business associate of Skills Insight or not;
the reason the gift was offered;
if accepting the offer would:
create a conflict of interest,
would bring you, Skills Insight or the public sector into disrepute.
if there is a legitimate business benefit to Skills Insight, the public sector or the state for accepting the offer – i.e. does it meet the following:
Was it offered during the course of your official duties?
Does it relate to your official responsibilities?
Does it have a benefit to Skills Insight, the wider public sector or the State?
a description of the gift, benefit, prize or hospitality,
an estimate of its value,
if this was a first-time offer, or if there have been other offers within the last 12 months,
if there have been other offers by the same person/organisation,
the cumulative value of these offers (if applicable).

The CEO will then either authorise you to accept or decline the gift, benefit or hospitality, or reject your acceptance of the gift benefit or hospitality.

Directors must provide the required information to the Company Secretary for authorisation by the Chair (or Deputy Chair in the case of the Chair not being available).

When can I accept a Gift, Benefit or Hospitality?

In general, offers of gifts, benefits, prizes or hospitality should only be accepted with a legitimate business reason for accepting the offer. That is, it is offered in the course of your official duties, relates to your responsibilities and has a benefit to Skills Insight, the public sector or the State.

More specifically, offers of gifts, benefits, prizes or hospitality may only be accepted if they relate to:

participation at work-related industry events; or
work-related training and development; or
gifts of appreciation that are a token gift.

Even if they meet the above, acceptance will only occur if there is compliance with the following principles:

It does not unduly influence, or have the potential to influence you, create a business obligation on you or Skills Insight, compromise or appear to compromise your integrity and impartiality or create a conflict of interest or perception of a conflict of interest.
It is not related to advice or decisions about activities such as granting licences, inspecting and regulating business or giving approvals or selection or engagement of contractors or suppliers.
It does not involve time away from your official duties (unless approved by your Go-To).

Non-token offers without a legitimate business benefit will not be approved.

Recording offers in the register

Individuals should consider the following examples of acceptable and unacceptable levels of detail to be included in the register when recording the business reason:

Unacceptable

“Networking”
“Maintaining stakeholder relationships”
“Seemed like the right thing to do”.

Acceptable

“Individual was offered free attendance at a conference as part of their role and attendance was
supported by their Go-To”
“Individual presented to a visiting international delegation. The delegation presented the Individual with a cultural item worth an estimated $200. Declining the gift would have caused offence. The gift was accepted, and written approval was subsequently obtained for the gift.”

When you may accept without authorisation or needing to record in the register:

Subject to the principles above, you may accept without seeking authorisation and do not need to record in the register:

A token gift offered in business situations, such as small office accessories (e.g. pens, calendars, paperweights, ties, scarves and the like) that contain a company logo. Such products are normally mass produced and given to all customers or meeting participants rather than as a personal gift. The value of such gifts must not exceed $50, otherwise they are declarable items.
A gift of appreciation for a speaking appearance, a Skills Insight promotional activity or great customer service that is of nominal value (e.g. flowers, bottle of wine or box of chocolates). If the value of such gifts exceeds $50, they are declarable items requiring authorisation to accept.
Moderate hospitality such as refreshments served at a business meeting or function. In all cases, the hospitality offered and accepted should be proportionate to the occasion, and not create a real, potential or perceived conflict of interest. The value of such hospitality must not exceed $50, otherwise it is a declarable item.

Discretion should always be applied when hospitality is offered. Invitations for hospitality may only be accepted where the hospitality is offered as part of a work-related industry event, training or development (e.g. dinner or corporate functions are acceptable where an existing relationship is in place with the offering party.)

Invitations to these types of functions would not be appropriate if they are offered repeatedly. Invitations of this nature must not be accepted when a supplier seeks business opportunities with Skills Insight, either through a tender process or otherwise.

There may be situations where you are offered a gift, benefit or hospitality and there is no opportunity to seek approval prior to accepting. For example, you may be given a wrapped gift that you later identify as a non-token gift. In these cases, you must seek approval from your Go-To within five business days.

When should I refuse or decline an offer of a gift, benefit, prize or hospitality?

An offer of a gift, benefit, prize or hospitality offered to you personally may not be accepted or given if any of the following applies:

It is likely to influence you or be perceived to influence you in the course of your official duties or raise an actual, potential or perceived conflict of interest.
It is extended to your relatives and friends.
It has no legitimate business benefit.
Is offered by a person or organisation with whom you are likely to make business decisions (also applies to processes involving grants, sponsorship, regulation, enforcement or licensing).
It is intended, or is likely, to cause the recipient or donor to act in a partial manner.
The donor or reasonable observer would consider that the recipient may be under obligation to the donor.
It is offered in secret.
It is an offer of money or anything readily convertible to money (e.g., shares, travel, accommodation).

The following offers of gifts, benefits, prizes or hospitality must be refused:

Offers of gifts, benefits, prizes or hospitality that could be reasonably perceived as undermining the integrity and impartiality of Skills Insight or yourself.
All offers of gifts, benefits, prizes or hospitality from people or organisations about whom you are likely to make decisions involving:
tender processes, i.e. your role involves the selection or engagement of contractors or suppliers
procurement, i.e. your role involves the selection or engagement of contractors or suppliers
enforcement
licensing
sponsorship.
Any offers where you have any involvement in making a decision and you could be influenced or perceived to be influenced by a gift, benefit or hospitality.
Offers of sponsored or free travel and accommodation to attend a conference or participate in an industry event unless you provide a service to the event such as a keynote speech.
Bribes which should be immediately reported to the CEO, or your Go-To.

If you are unsure about how to respond to an offer of a gift, benefit or hospitality, seek advice from your Go-To, The Executive or the CEO. Under no circumstances should you solicit or request a gift of any kind from a supplier, customer, or other party with whom Skills Insight conducts business.

Transferring non-token gifts received to Skills Insight

The gift’s monetary value and legal requirements should be considered when determining whether a gift should be accepted, handed to the company, or returned. Your Go-To will advise if a gift should be handed to the company and the Executive will then determine if the gift should be donated to a nominated charity or made available to all employees in the work unit.

When attending a conference either as a participant or speaker or applying for an award in relation to work undertaken, you represent Skills Insight. If Skills Insight has paid for costs, including time, travel and accommodation costs, benefits accruing belong to Skills Insight. This includes non-token door prizes and fees for speaking. These benefits are to be recorded on the register and become Skills Insight’s property to be donated to a nominated charity or made available to all employees in the work unit.

Repeat Gifts

The value of repeated offers of gifts, benefits, prizes or hospitality from a single source may be quite high. When accepting gifts becomes a habit or an expectation, you are likely to be compromised and may be in breach of the Code of Conduct.

Gifts and the Festive Season

When Christmas approaches, many suppliers wish to express their appreciation for Skills Insight’s support to their business during the year and to extend their good wishes for the festive season. The principles detailed in this procedure to accept or decline a gift, benefit or hospitality apply equally at this time of year.

Management of the provision of Gifts, Benefits, Prizes and Hospitality

Skills Insight may provide gifts, benefits and hospitality for a range of reasons, including:

receiving guests or hosting a meeting
facilitating the development of business relationships, for example, a community event
launching a community event
providing sponsorships
celebrating an achievement.

When deciding whether to provide gifts, benefits or hospitality or on the type of gift, benefit or hospitality to provide, individuals must ensure that:

any gift, benefit or hospitality is provided for a business reason in that is furthers the conduct of official business or other legitimate organisation goals, or promotes and supports Skills Insight’s objectives and priorities;
any costs are proportionate to the benefits obtained, and would be considered reasonable in terms of community expectations; and
when hospitality is provided, individuals demonstrate professionalism in their conduct, and uphold their obligation to extend a duty of care to other participants.

Functions for staff

Skills Insight may provide catered activities for staff, including:

Training courses, workshops, planning days, etc.
Recognition of achievements, such as project completion or retirement of a long- standing employee.

In supporting these events, Skills Insight will consider contributing to organisational objectives and the need to balance benefits with community expectations in relation to prudent expenditure. Events of this nature are to be approved by a member of the Executive.

Providing gifts to staff

Skills Insight recognises significant staff achievements through events such as length of service milestones. On these occasions, Skills Insight may choose to provide hospitality to celebrate the event. Venues and catering should reflect the nature of the activity and be aligned with Skills Insight’s objectives. Luxurious venues must be avoided.

Where meetings extend over mealtimes, modest hospitality may be provided.
Token gifts such as cards or flowers may also be sent following a family members’ death.
Celebrations such as birthdays, marriages or the birth of children should not be funded at Skills Insight’s expense.

Bribes, potential bribes and compromising circumstances

If an employee, executive, director, agent or third party believes they have been offered a bribe; believes that there is potential for the offer of a gift to be perceived as being a bribe; or believes that the acceptance of a gift may place them or Skills Insight in a compromising position, they must politely decline acceptance. The incident must then be reported to the Executive or the CEO immediately.

If you become aware of another employee or contractor who has been offered and accepted a bribe, you must immediately report it to the Executive or the CEO. This is also subject to the Dealing with Fraud, Corruption and Prohibited Dealings Policy.

Breaches of This Procedure

Breach of this procedure may result in an individual(s) being counselled or censured, undergoing disciplinary action (including termination of employment), being reported to law enforcement agencies, or being the subject of civil action. Breach of this procedure by an agent or third-party representing Skills Insight may result in termination of their engagement with Skills Insight.

Responsibilities

The CEO has the overall responsibility for promoting compliance with this procedure. The appropriate members of the Executive are responsible for:

maintaining awareness of this procedure and adherence with its requirements
ensuring that this procedure is adhered to
all employees under their direction have read and acknowledged their understanding of this procedure
awareness and commitment to the intent of this procedure is maintained and regularly promoted; and
any disputes or lack of clarity of requirements are resolved promptly and constructively to ensure ongoing commitment to Skills Insight’s values of accountability and integrity.

Employees, agents and third parties are responsible for adhering to the requirements of the procedure.

The CEO is responsible for approving, rejecting, and reviewing offers declared by Skills Insight staff, and maintaining the Register of Gifts, Benefits, Prizes and Hospitality.

The CEO is responsible for presenting the Gifts, Benefits, Prizes and Hospitality Register to the Board on an annual basis, or as requested.
Individuals who consider that gifts, benefits, prizes and hospitality or conflicts of interest within Skills Insight may not have been declared or is not being appropriately managed should speak up and notify the CEO, the Executive or their Go-to.

Skills Insight will take decisive action, including possible disciplinary action, against individuals who discriminate against or victimise those who speak up in good faith.

Feedback and Amendments

Organisations change over time, and as a result, their policies must also adapt accordingly. If you identify any aspect of this policy that requires adjustment or updating, please reach out to the Executive who will follow a policy review process as endorsed by the CEO.