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Case Studies
The cost of incentive
Timothy had been working as a tourist guide for a travel agent for nearly ten years. All along, his company and several jewellery shops had agreed that the shops would rebate his company 10% of the total sales proceeds from tourists. With the company’s expansion, Timothy was also assigned to guide inbound Mainland tour groups.
One day, as usual, Timothy guided the tourists to the jewellery shop registered by his company. After settling the tourists, he chatted with Tom, the shop’s proprietor. Tom remarked that Mainland groups always brought him good profits. In response, Timothy suggested that if Tom provided him personally with an additional 5% rebate on top of the 10% given to the company, it would give him higher incentive to promote Tom’s shop to the tourists. He added that a tourist guide’s enthusiasm in promotion could significantly influence the tourists’ purchasing decisions. Unable to bear the potential loss, Tom reluctantly succumbed to Timothy’s request. To compensate for the extra commission, Tom began misleading tourists into purchasing newly launched brands, falsely claiming they were well-known models and selling them at inflated prices.
That evening after the tourists had returned to their hotel, Troy, the Mainland escort of the tour group, offered Timothy a red packet and hinted that it would bring him good luck and ensure their smooth cooperation in the future. Thinking it was a “first-meeting gift”, Timothy accepted it gratefully.
Case Analysis
According to Section 9 of the Prevention of Bribery Ordinance (POBO), it is an offence for an employee to solicit or accept any advantage in relation to his official duty without the permission of his employer. Timothy, as an employee of a travel agent, solicited and accepted an additional rebate from Tom without the permission of the travel agent while carrying out his duties. Therefore, both Timothy and Tom might breach the POBO.
Tom should promptly report Timothy’s solicitation to the ICAC. By misleading tourists into purchasing purported branded goods, Tom not only jeopardised his company’s reputation, but also put the integrity of Hong Kong’s tourism industry at risk.
According to Section 19 of the POBO, trade custom or practice does not constitute a defence for the offeror and the acceptor of an illegal advantage. Timothy should adhere to the company’s policies regarding the acceptance of advantages to avoid engaging in illegal or unethical behaviour. Despite his role as a Mainland tour escort, Troy should also comply with the POBO and other laws while escorting the group in Hong Kong.