Northstar

VIEWPOINT | RICH THOUGHTS 50 Jul-Aug 2016 meetings & conventions • mcmag-asia.com Elizabeth Rich is an Australia-based business events specialist with experience as an association manager, PCO, trainer, speaker, writer and consultant. A keen observer of the international market, Elizabeth has over 35 years' experience in business events. elizabethrich@agenda. net.au Are you corruptible? Words Elizabeth Rich With all the talk nowadays about corruption and the need for transparency in business, is it time to take a closer look at some of the grey areas in the business events industry? From gift giving to more blatant cash incentives, individuals need to be careful about the legal and ethical aspects of their actions. I've noticed recently a number of venues offering enticements to event organisers to secure their business. For years, it has been standard practice to offer famils and site visits to prospective clients. No problem. It is expected. No decent organiser would book a venue for any substantial meeting without experiencing it first. The wining and dining involved is regarded as a pleasant perk of the job. Organisers often receive commissions for accommodation and sometimes for food and beverage and other supplier provisions. Again, no problem as long as the organiser has openly declared to the client that they receive these commissions. But, in Australia at least, to accept hidden commissions is unlawful under the Secret Commissions legislation. This applies when an organiser such as a PCO is acting as an agent for the client. It is also a crime for the supplier to offer a secret inducement to gain business, be it cash or a form of benefit. Unfortunately for suppliers they can be placed in awkward situations if they are pressured to provide personal incentives to gain the business. Clients are entitled to expect independent advice and recommendations from their agents, unfettered by any inducements. They may be wise to add a clause regarding independent advice and recommendations to any agency contracts. When it comes to employees of host organisations who are swayed by personal inducements, at the very least, this becomes a matter of ethics and workplace policies. Where do we draw the line? What is acceptable business? Gift-giving is part of the Asian culture. But when do gifts take on an "inducement" quality? In an effort to boost business by a certain date, a unique Australian venue offered a $4,000 spend in a luxury goods store for a catering spend of $35,000. Just who receives this spending money? I guess if the organiser used it to buy speakers' gifts and thus reduce the budget line item, this could make an attractive and ethical business offer. But if the organiser is taking this offer for personal use, I'd be raising questions. Offers such as complimentary room allocations, free meeting space, special AV rates, upgraded menus, welcome gifts for event VIPs, free wifi for delegates, car parking special rates and so on, are all great negotiating points which can make a difference to the event itself and the bottom line. But when I see a global hotel chain in Sydney offering "sensational rewards up to $2,000 in value" my eyebrows are raised. My advice to organisers is always to negotiate or accept benefits which advantage the actual event. And my advice to suppliers is to never offer personal benefits to organisers, only benefits which go directly to help the success of the event. All parties should have clear employment policies on these issues in their workplaces to ensure staff are clear on accepted behaviour. Clients should not be afraid to question potential suppliers on these matters . PHOTO: ISTOCKPHOTO Never offer personal benefits to organisers, only benefits that go directly to help the success of the programme."

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