By John P. Cunningham and Geoff Martin, Washington D.C.
The World Cup kicked off in Brazil this month. Tickets for the quadrennial month-long soccer tournament, currently ongoing in various cities throughout the country, sold out months ago.
The tournament has been criticized by some in Brazil due to a perception that the event is reserved for the elite, with ordinary Brazilians being priced out of attendance. This perception, whether accurate or not, seems to be primarily directed at the provision of corporate hospitality, where the cost of single match tickets can run into the tens of thousands of dollars.
Corporate hospitality at the World Cup and other high-profile global events can provide a bona fide relationship-building opportunity for companies. Nevertheless, such events are also a reminder of the risk that, when handled improperly, corporate hospitality can result in bribery or related improprieties. In this article, we examine where companies should draw the line, what can be done to manage and mitigate the risks, and the importance of properly recording expenses associated with corporate hospitality.