Professionals and companies may not give the subject of bribery that much thought. But this could change in the not too distant future.

UK legislation relating to bribery has been criticised as “weak and innefective.” On July 1, the Bribery Act 2010 will come into force with the aim of strengthening the existing bribery and corruption laws in this country as a result of pressure from the European Economic Community.

This legislation has teeth and is to be taken seriously. The corporate hospitality industry is already anticipating the possible effect of it. Firms in the financial services industry such as ours are already required to log in a company register any hospitality or gifts received over £25 in value. Many companies in the independent sector ban gifts altogether as they want to avoid the possibility they could be regarded as inducements.

Under the new act, bribery is defined as the offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal or a breach of trust.

But nobody seems certain how sponsorship will be affected. Banks such as the RBS with the hugely popular Six Nations rugby tournament are big sponsors of sporting events. Corporate hospitality can be worth several hundred pounds when you get a free ticket as well as being wined and dined for a sporting encounter that is sold out.

The government said it did not expect “genuine hospitality” or similar expenditure to fall under the act. But it all depends what you mean by “genuine.” When is entertaining not an inducement and when is an inducement not bribery under the definition of the Act?

However, there are various practical steps to take before the Bribery Act 2010 comes into force.

Small and medium-sized enterprises have fewer resources to counter bribery than larger companies. However, it is important to take some straightforward measures before the law comes into force to help prevent your business breaching the new legislation.

Make sure all directors and senior managers understand they could be personally liable under the Bribery Act 2010 for offences committed by the business. It is important that senior management lead the anti-bribery culture of your business, especially if it wants to take advantage of the “adequate procedures” defence to the offence of failing to prevent bribery.