We may not offer, promise, give or authorize the presentation of anything of value, either directly or indirectly, to anyone for the purpose of obtaining an improper business advantage.

Anti-corruption laws are generally stricter when it comes to government officials. Government officials are subject to local anti-bribery and ethics laws and regulations that may limit the gifts, entertainment and other items of value they are permitted to accept. It is important that we not take any action that violates these laws or regulations. For a more detailed explanation of who could be labeled a government official, please consult the Foreign Corrupt Practices Act frequently asked questions guide.

When dealing with certain government officials, we may be asked to make facilitating payments. “Facilitating payments” are small sums of money or gifts, generally given to low-level government employees. They are made to facilitate the performance of a routine governmental action, such as processing an application for a permit, license or other official document. Most countries prohibit facilitating payments and Timken rarely allows for them. If you encounter a situation where a facilitating payment is sought, you must obtain prior approval from legal services before making the payment. The only exception to this policy is where the health or safety of a person is at risk. In this case no prior approval is required and the payment should be reported to legal services as quickly as possible. Payments only will be approved and made for purposes described in the documentation supporting the expense. When internal and external auditing is necessary, full cooperation is expected.

Our company’s anti-bribery policy must be followed regardless of the monetary value of the item proposed or intended to be given. We may not use personal funds or money from third parties to circumvent the requirements of our policy or the law.

We have a commitment to comply with anti-bribery laws, and expect our business partners to do the same. Therefore, we conduct due diligence prior to hiring a third party such as a sales agent, or entering into a transaction such as a merger or acquisition. If you are hiring a sales agent, contact legal services for assistance with this process. A higher level of due diligence is required for third-party intermediaries or consultants who claim to have influence
with government officials or with whom you believe will exert improper influence to win a government contract.

Our company maintains a system of internal controls. These controls provide reasonable assurances that all transactions and access to corporate assets are only undertaken in accordance with management’s authorization. Finally, we each have a responsibility to ensure that corporate records fairly and accurately reflect all transactions and dispositions of our assets in reasonable detail. Never make false or artificial entries in any company books or records for any reason. Do not engage in or support any act that results in such an entry. By following these guidelines, we ensure our company continues to operate to the highest standards of ethics and integrity.

Q: Vanessa works in sales at Timken and is submitting a proposal to a government-owned company outside of the United States. Her contact suggested that a cash payment would grant her proposal higher consideration. He told her that a personal contribution of $800 would almost surely win Timken the contract. Vanessa doesn’t want to put her integrity on the line, but really needs this contract. Can she make the payment, as long as she doesn’t use Timken funds?

 

A: Absolutely not. Our company’s competitive standing is important, but not at the cost of our integrity. An employee of a government-owned business is considered an official, and any payments made to this individual to influence a business decision are strictly prohibited by company policy and the law. Vanessa must not make such a payment, even with her own funds. She should only attempt to win the contract fairly and lawfully. In addition, she should follow up with legal services to document the request for payment.