HR Policies on Entertainment Expenses

Posted on May 9, 2010

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This blog is a supplement to my earlier blog, Five Ways Your Business Can Engage in the Battle Against Sexual Exploitation of Children. Here you will find samples HR policies restricting reimbursements for entertainment expenses that include adult entertainment. 

You are invited to contact me to provide sample policies to be added to this list.

BIS Benefits

Employees of BIS Benefits may not entertain guests, employees or clients, or accept meals and entertainment, in establishments with “adult entertainment”, e.g. nude dance clubs or gambling.

Levi Strauss & Company

Examples of prohibited entertainment

  • Lavish and costly dinners
  • Adult entertainment
  • Frequent entertainment

Rinnai America

Finally, employees may not entertain guests, employees or customers in establishments focused on “adult entertainment” not suitable for general business, e.g. nude dance clubs or gambling establishments.

Visteon

Examples of potential conflicts of interest include but are not limited to:

  • Having more than a 2.5% financial interest in a competitor, customer, supplier or other for-profit entity doing business with Visteon;
  • Outsourcing work to a company in which a relative has a position of leadership or stands to make a monetary gain;
  • Having a consulting, managerial or employment relationship with a competitor, customer, supplier or other entity doing business with the Company;
  • Acquiring property rights that Visteon has or may reasonably have an interest in;
  • Accepting gifts, entertainment or other favors of more than nominal value (which in no case should exceed a fair market value of $50.00 U.S.) from those who do business – or seek to do business – with Visteon; Accepting cash, product or service discounts, loans or co-signature arrangements for you or your family from such individuals;
  • Accepting offers to pay for travel, lodging or similar accommodations;
  • Soliciting any gifts, entertainment or other favors;
  • Any form of adult entertainment.

Zep Inc.

  • Entertainment for Company associates is not reimbursable except for social events such as meals in conjunction with a business trip, or entertainment expenses in connection with service award recognition, transfers, promotions, or retirement of Company associates.
  • The highest ranking associate hosting the event must pay and report all entertainment expenses.
  • The establishment name*, persons entertained, business relationship, business purpose, and cost must be documented on the expense report.*
  • Bills from adult entertainment establishments are not a reimbursable business expense.
  • The purpose should be clearly disclosed and all attendees should be listed individually.
  • Lavish customer entertainment requires prior written approval by a senior executive of the business unit.  Lavish is defined as 1) not reasonable and customary within the industry, 2) expenses that an associate would not normally spend on himself/herself, family or friends, 3) any expense which makes the recipient feel obligated to commence or continue a business relationship, repay the donor with future business, or extend other favorable treatment.

 *One of the key components of this policy is that the establishment name must be provided. Some adult entertainment establishments will use a different name on receipts so as to disguise the true identity of the business.

This article shares the story of Morgan Stanley firing workers after strip-club visit.

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Jack Bruce is the COO of BIS Benefits in Atlanta, GA. He is certified as Professional in Human Resources (PHR).

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