PlBackground Information
This policy applies to any situation where Plexus is giving or receiving gifts, meals and entertainment. This includes any of the following situations:
Appropriate discretion in the giving and receiving of gifts, meals and entertainment is critical for protecting Plexus’ reputation with shareholders, customers, suppliers and regulators and to avoid violating legal requirements. Whenever there is any doubt as to whether a transaction involving gifts, meals or entertainment is appropriate, you should exercise caution and, prior to engaging in the transaction, seek guidance from your local human resources representative or Plexus legal. If there is any doubt whether a gift, meal or entertainment transaction would violate this policy, the transaction should be avoided. A good rule of thumb to follow is whether a disinterested observer would view the gift, meal or entertainment as an unethical or unfair business practice.
The giving and receiving of gifts, meals and entertainment is a regular occurrence in conducting business activities. Plexus employees are permitted to give and receive gifts, meals and entertainment in the normal course of business activities provided that such transactions meet the requirements of this Policy.
A corrupt transaction is giving or receiving anything of value for an improper purpose (for more information, see the Plexus Anti-Corruption Policy). Examples of corrupt transactions include bribes and kickbacks. Some companies have disguised corrupt transactions as travel and entertainment expenses and expensive gifts. This Policy provides detailed guidance and examples to help Plexus employees distinguish between appropriate business gifts, meals and entertainment and improper corrupt transactions.
All meals or entertainment must meet all of the following requirements:
Examples of reasonable and customary:
Example of unreasonable and non-customary:
All gifts to and from customers, vendors, third party agents must meet all of the following requirements:
Regions or functions within Plexus may adopt policies on gifts, meals and entertainment that are more restrictive than this Policy. Employees must comply with any applicable more restrictive regional or functional policies.
More restrictive guidelines than those described in this Section 2 apply to gifts, meals and entertainment involving government officials. See Section 3 below.
Caution should be exercised before giving or receiving gifts, meals or entertainment to or from any government official. The laws of many countries, including the U.S., severely restrict gifts, meals and entertainment given to government officials.
A government official includes traditional government officers and employees and also includes any of the following:
In addition to meeting the requirements under Section 2 of this Policy, any gifts, meals or entertainment given to a U.S. government official must meet both of the following requirements:
The above requirements are commonly known as the “20/50 Rule.” Providing normal refreshments at business meetings, such as water and coffee, does not count against the 20/50 Rule limits. In addition, meals normally offered to employees generally at any facility (such as a cafeteria) are exempt from the 20/50 Rule limits.
Some U.S. government agencies require their employees to pay for their portion of refreshments themselves in all circumstances. Where this is known to be the case, Plexus should make every effort for any food and refreshments provided to be modest and provide a “contribution” jar or basket through which the government employee can cover the cost of his or her refreshments.
Be very cautious when dealing with U.S. government officials. Even innocent gestures such as giving a government official a ride to or from the airport can violate legal requirements. Any questions concerning these transactions should be directed to Plexus Legal.
In addition to meeting the requirements under Section 2 of this Policy, any gifts, meals or entertainment to a non-U.S. government official must comply with the local laws and regulations that apply to the official. To determine which local laws and regulations apply to the official, you should contact any representative of Plexus Legal.
Facilitation payments (sometimes called “grease payments”) are payments of small sums of money to expedite or secure the performance of a routine governmental action, such as the processing of a visa application. Facilitation or “grease” payments are prohibited unless approved in advance and in writing by a representative of Plexus Legal.
For answers to questions or guidance relating to this Policy, contact your local human resources representative or any representative of Plexus Legal.
If any employee suspects a violation of the law or this Policy, the employee must immediately raise the concern through the employee’s local human resources representative or any of the people named in the Plexus Code of Conduct and Business Ethics (the “Code of Conduct”); a copy of the Code of Conduct is posted on PRIDE. Alternatively, employees may report concerns via the Ethics Hotline (instructions posted on CONNECT and in the Code of Conduct).
Any violation of this Policy is grounds for immediate disciplinary action, including termination. A violation of this Policy may result in violations of legal requirements in the countries where Plexus conducts business. Substantial civil and criminal penalties, including fines and imprisonment, may be imposed for violations.