Apple (AAPL)

Governments have wrestled with determining when a gift or gratuity is a “bribe” or merely a “courtesy”.  As a result, in many instances government regulations prohibit giving what might seem like a simple courtesy to a governmental employee.  For example, the regulations of various United States government bodies prohibit employees of contractor firms (firms doing business with the government in the U.S., or a subcontractor to those firms) from providing meals, refreshments, entertainment, token gifts, or other business courtesies to government employees or military personnel.  Even if a particular country does not prohibit the above activities, the U.S. Foreign Corrupt Practices Act places restrictions on American companies, and their local subsidiaries, doing business with governmental agencies outside of the United States.

There are some exceptions, though.  For example, in many countries, but not the United States, it is considered common courtesy to provide small gifts on certain occasions to government officials.  Within limits appropriate to the country, such gifts may be permissible (see the discussion of the Foreign Corrupt Practices Act, below).  Also, serving lunch to participants (including government officials) in a business conference held on Apple premises is often not

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prohibited, if the purpose is to make the best use of Apple’s time and that of any government employee.  Seeking advice from the government employee in advance may help to avoid embarrassment and protect the interest of Apple employees.  In other words, Apple employees—before offering even the most common amenities of this sort—should check with the government employee.  If circumstances warrant, employees should check with the Apple Law Department to see if offering the courtesy is permissible in order to avoid situations that are potentially embarrassing or, possibly, illegal.

Governments have wrestled
with determining when a gift or gratuity is a “bribe” or merely a
“courtesy”.  As a result, in many
instances government regulations prohibit giving what might seem like a simple
courtesy to a governmental employee. 
For example, the regulations of various United States government bodies
prohibit employees of contractor firms (firms doing business with the
government in the U.S., or a subcontractor to those firms) from providing
meals, refreshments, entertainment, token gifts, or other business courtesies
to government employees or military personnel. 
Even if a particular country does not prohibit the above activities, the
U.S. Foreign Corrupt Practices Act places restrictions on American companies,
and their local subsidiaries, doing business with governmental agencies outside
of the United States.

There are some
exceptions, though.  For example, in
many countries, but not the United States, it is considered common courtesy to
provide small gifts on certain occasions to government officials.  Within limits appropriate to the country,
such gifts may be permissible (see the discussion of the Foreign Corrupt
Practices Act, below).  Also, serving
lunch to participants (including government officials) in a business conference
held on Apple premises is often not

Page 11

prohibited, if the
purpose is to make the best use of Apple’s time and that of any government
employee.  Seeking advice from the
government employee in advance may help to avoid embarrassment and protect the
interest of Apple employees.  In other
words, Apple employees—before offering even the most common amenities of this
sort—should check with the government employee.  If circumstances warrant, employees should check with the Apple
Law Department to see if offering the courtesy is permissible in order to avoid
situations that are potentially embarrassing or, possibly, illegal.