Apple 2003 Annual Report Download - page 156

prohibited, if the purpose is to make the best use of Apple’s time and that of any government employee. Seeking advice from the government
employee in advance may help to avoid embarrassment and protect the interest of Apple employees. In other words, Apple employees—
before
offering even the most common amenities of this sort—should check with the government employee. If circumstances warrant, employees
should check with the Apple Law Department to see if offering the courtesy is permissible in order to avoid situations that are potentially
embarrassing or, possibly, illegal.
Kickbacks, bribes and the Foreign Corrupt Practices Act.
Kickbacks and bribes to obtain business are against Apple’s business practices.
They are also against the law in almost every country in the world. The U.S. Foreign Corrupt Practices Act makes it illegal for a United States
citizen, a U.S. company and its U.S. and non-U.S. subsidiaries, and in some instances non-U.S. nationals, to offer or to give anything of value,
directly or indirectly, to a foreign government official in order to gain or retain business or to obtain an unfair competitive advantage over
competitors. Numerous countries have either passed similar laws or have committed to do so.
Apple employees may not, directly or indirectly, offer or give any payment or other gift (including equipment) that could even appear to be a
bribe, kickback, payoff, or other irregular type of payment to a foreign government official to influence an official act or decision. More
specifically, Apple employees may not make payments or give anything of value to foreign officials or their representatives for the purpose of
gaining or maintaining business or gaining an improper advantage.
These prohibitions apply to giving something to a third party, such as an agent, reseller or lobbyist, with the intention that they give it to a
foreign official or with the reasonable belief that the third party will do so. Before retaining third parties to represent Apple in any business
relationships with a government agency, a thorough and careful analysis of their ownership structure and business reputation in their
relationship with the government agencies and officials must be undertaken.
To protect Apple and its employees, employees must check in advance with the Apple Law Department before giving, directly or indirectly,
anything of value to government officials or their representatives.
Facilitating payments exceptions.
Payments that are customary in a foreign country and that are necessary to facilitate or expedite ministerial
actions ordinarily performed by foreign officials—such as obtaining routine permits or licenses; processing visas and work permits; or
receiving customs, police, mail, and inspection services—are not prohibited by the U.S. Foreign Corrupt Practices Act. In the United States,
facilitating payments are neither customary nor legal, and are not allowed by Apple’s policy. Further, it is not generally Apple’s policy to
favor facilitating payments outside the U.S., even though legally permitted by U.S. laws. Therefore, all such facilitating payments outside the
U.S. in excess of US$100 require prior approval by the Apple Law Department, except in exigent circumstances. In all cases, such payments
must be accurately recorded in expense reports and in Apple’s books and records.
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