Apple 2003 Annual Report Download - page 155

C. Dealing with government contracts and other government requirements
Special requirements may apply when contracting with any government body (including national, state, provincial, municipal, or other similar
government divisions in local jurisdictions). Apple employees are expected to read and to comply with all applicable Apple policies and laws
relating to our dealings with governmental bodies.
Disclosure and certification requirements.
In addition to Apple’s own general high standards imposed on all Apple employees, government
agencies often place special disclosure and certification requirements on firms with which they do business. These requirements impose on
Apple employees the need to be especially vigilant to ensure that our general business practices conform to special government pricing,
contracting, and certification requirements. In certain situations, for example, Apple may have to certify that it is supplying the government
with its lowest price charged to our commercial customers. Apple may also have to certify that its prices have been arrived at independently,
that is, without any collaboration with a third party. Apple depends on all of its employees to make sure that these and other promises to the
government are satisfied. Any doubts about such matters should be brought to the attention of the Apple Law Department.
Employment of former government employees.
Apple is committed to observing all laws limiting the duties and types of services that former
government and military employees may perform as Apple employees or as consultants to Apple. In the United States, for example, laws and
regulations prohibit employment negotiations with any government employee while he or she is participating in a matter involving Apple’s
interest. They also prohibit a former government employee from acting on behalf of Apple in a matter in which he or she participated
substantially while employed by the government. State and local employees are often subject to similar limitations. Retired military officers
have additional restrictions on their dealings with their former service. All questions in this area should be directed to the Apple Law
Department.
Gratuities for government officials. In additional to the limitations that exist on Apple employees when giving or receiving any tips, gifts, and
entertainment in the context of Apple business generally, additional considerations may apply when dealing with government personnel and
their representatives.
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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