For example, a pharmaceutical company used chari- the payments were not viewed as charitable contributions table donations to a small local castle restoration charity but rather as “dues” the subsidiary was required to pay for headed by a foreign government official to induce the offi- assistance from the government official. The payments con- cial to direct business to the company. Although the charity stituted a significant portion of the subsidiary’s total pro- was a bona fide charitable organization, internal documents motional donations budget and were structured to allow at the pharmaceutical company’s subsidiary established that the subsidiary to exceed its authorized limits. The payments OO e—™C“C(“#EENNN'.LN Hypothetical: Gifts, Travel, and Entertainment Company A is a large U.S. engineering company with global operations in more than 50 countries, including a number that have a high risk of corruption, such as Foreign Country. Company A's stock is listed on a national U.S. stock exchange. In conducting its business internationally, Company A's officers and employees come into regular contact with foreign officials, including officials in various ministries and state-owned entities. At a trade show, Company A has a booth at which it offers free pens, hats, t-shirts, and other similar promotional items with Company A's logo. Company A also serves free coffee, other beverages, and snacks at the booth. Some of the visitors to the booth are foreign officials. ls Company A in violation of the FCPA? No. These are legitimate, bona fide expenditures made in connection with the promotion, demonstration, or explanation of Company A's products or services. There is nothing to suggest corrupt intent here. The FCPA does not prevent companies from promoting their businesses in this way or providing legitimate hospitality, including to foreign officials. Providing promotional items with company logos or free snacks as set forth above is an appropriate means of providing