Policy on Anti-Corruption and Business Courtesies

Policy Number: 111

Governance and Legal

The permanent link for this policy is: https://policies.northeastern.edu/policy111/

I. Purpose and Scope

This policy furthers Northeastern University’s Code of Ethical Conduct by reinforcing the anti–corruption expectations and standards for the university community, including but not limited to fraud, bribery, money-laundering, and business courtesies. It applies to all faculty and staff as well as other members of the university community as indicated below.

II. Definitions

Bribe means offering, promising, giving, authorizing, or accepting any Thing of Value, directly or indirectly through a third-party, to a person or entity with the intent to: influence an act or decision of that person or entity in their professional or official capacity, induce them to do or omit to do any act in violation of their lawful or fiduciary duty, or secure an improper advantage related to any university-related matter or activity.

Business Courtesy means a customary, professional gesture of goodwill, appreciation, or relationship-building, which can be tangible or intangible. Business Courtesies include, but are not limited to, food or beverages, travel, holiday or other gifts, entertainment, hospitality, and branded promotional items as well as professional recommendations, references, and similar support.

Corruption means the abuse of entrusted power, position, or authority for private gain or advantage. In this policy, corruption encompasses any dishonest or otherwise unethical conduct related to Northeastern University that violates a law, regulation, or organizational standard, including but not limited to a Bribe, kickback, Facilitation Payment, embezzlement, Fraud, Business Courtesy, conflict of interest, or Money-laundering.

Due Diligence means the systematic investigation, verification, and evaluation process conducted to assess the background, reputation, compliance history, and risk profile of consultants, vendors, and other third-party entities before entering into or maintaining a working relationship or contractual arrangement with them.

Facilitating Payments generally refer to small payments to Public Sector Employees or Officials made to expedite or secure performance of routine government action they are already obligated to perform, such as customs clearance; mail pick-up and delivery; building inspections; the processing of permits, licenses, or other official documents; and actions of a similar nature.

Fraud means any intentional act of deception, misrepresentation, or concealment designed to obtain an unfair or unlawful advantage, typically involving financial gain and/or the avoidance of legal obligations. Fraud includes but is not limited to:

- Falsifying a financial record, report, or other document related to the university
- Misappropriating or misdirecting university assets, funds, or resources for personal use
- Providing false or misleading information to auditors, regulators, or other Northeastern stakeholders
- Theft or unauthorized use of Northeastern proprietary information, trade secrets, or confidential data
- Unauthorized access or use of university credentials

Public Sector Employee or Official means, regardless of level or rank, (i) any officer or employee of a government or any department, agency, or instrumentality thereof (which includes a government-owned or government-controlled enterprise and organizations that serve a public function) or of a public international organization, such as the International Red Cross, United Nations, and the World Bank; (ii) any person acting in an official capacity for or on behalf of a government, government entity, public international organization, political party or party official, or any candidate for political office (including, for example, consultants who hold government positions or act in an official capacity on behalf of a government including for gift, grant, or bid proposal activities; employees of entities owned or controlled by governments; civil servants; administrative and judicial officers; political candidates; and members of the military); and (iii) family members and close personal friends of any of the foregoing, even if they are not otherwise associated with a government or public office.

Public Sector Entity includes any government, legislature, or decision-making body; judiciary; court; instrumentality; department; agency at any level (national, provincial, state, city, local, municipal, or otherwise); entities managed, controlled, or majority-owned by government interests; public organizations or foundations of any kind (including political parties, political organizations, or political candidates); any public international organization, such as, but not limited to, the International Red Cross, United Nations, or the World Bank; public utilities; public higher education; public primary or secondary schools; public healthcare entities; or entities deemed by law to be Public Sector Entities.

Money-laundering means disguising the origins of illegally obtained funds by passing them through legitimate financial transactions, businesses, or institutions to make them appear as if they came from lawful sources. This encompasses any activity that conceals, converts, transfers, or moves proceeds from criminal activity through the financial system or legitimate university operations.

Thing of Value includes but is not limited to cash or cash equivalents (e.g., gift cards or certificates, vouchers, or any form of digital currency), prizes, branded promotional items, gifts, travel, entertainment, event tickets or passes, donations, interest in a business venture, services (for which fair market value is not paid), and expense payments/reimbursements as well as professional recommendations, references, and similar support.

III. Policy

Northeastern prohibits Bribery, Corruption, Fraud, Money-laundering, or similar improper activity associated with any of its operations, activities, or locations. The university is committed to maintaining policies and procedures to raise awareness about, prevent, mitigate, and address the risks of these improper activities, including reviewing and assessing all such allegations brought to its attention.

Those who engage a third-party person or entity on behalf of or related to Northeastern are required to follow all university Due Diligence processes and procedures, including Restricted Party Screening (RPS), and engage in regular monitoring and assessment of the third party to enable prevention, timely identification, and responsible resolution of any improper activities conducted by the third party on the university’s behalf.

All financial transactions related to the university must be properly documented and recorded fully and accurately in official university systems and tools. No employee may make false, misleading, incomplete, inaccurate, or artificial entries in the records or accounts of the university nor establish or maintain any undisclosed or unrecorded fund or asset for any purpose.

Any contracts or agreements with or involving Public Sector Entities and/or Public Sector Employees or Officials must be in writing and reviewed by the Office of General Counsel (OGC) prior to execution. This review requirement is considered satisfied if done under processes pre-approved by the OGC for public sector-related contracts and agreements. Specific terms may be required by the university to address compliance with applicable anti-corruption, lobbying, and/or transparency laws, and this policy, including for contracts with third parties engaged by the university to represent its interests before a Public Sector Employee or Official or a Public Sector Entity.

A. Bribery and Corruption

No one within the scope of this policy, or any agent, representative, contractor, vendor, or other third party that works with or on behalf of the university, may Bribe or otherwise Corruptly authorize, offer, promise, or make or agree to make any payment of money or any other Thing of Value, directly or through a third-party, to any person—or to the spouse, significant other, child, or other relative of any such person—or entity related to a Northeastern activity to influence or reward an action or decision of the person or entity to gain an improper advantage.

Similarly, no one within the scope of this policy, or any member of their immediate family may, directly or through a third-party, request, solicit, agree to receive, or accept an improper payment of money or other Thing of Value associated with an activity related to Northeastern University.

Members of the university community should not authorize, offer, promise, or provide a Facilitating Payment, and must report requests for such payments to the OGC. A Facilitating Payment may be made by a member of the university community, or on that person’s behalf, only to secure the personal health or safety of members of the university community from imminent threats of physical harm (mere economic coercion does not satisfy this criterion). Any such payment must immediately be reported to the OGC. A legally mandated administrative fee for expediting government services is not a prohibited Facilitating Payment; a receipt should be obtained to document each such transaction. All Facilitating Payments must be accurately and transparently documented in the appropriate university financial systems and tools.

B. Business Courtesies

It is customary in many cultures to foster working relationships through the extension and receipt of courtesies, including food, refreshments, entertainment, and modest gifts. However, if the circumstance, nature, value, or frequency of courtesies offered or received would lead a reasonable observer to conclude that the courtesy was intended to influence or reward an action or decision of the recipient or to gain an improper advantage, then the Business Courtesy may no longer be viewed as a polite gesture but instead an inappropriate and potentially unlawful Bribe.

Accordingly, anyone within the scope of this policy who offers, promises, gives, facilitates, or authorizes expenditures for—or requests, solicits, receives, accepts, or benefits from—Business Courtesies of any sort are responsible for ensuring that each such courtesy meets the following mandatory requirements:

1. The Business Courtesy is justified by a clear and legitimate Northeastern purpose;
2. The Business Courtesy is neither offered nor accepted to influence or reward an action or decision of the recipient or to obtain an improper
  advantage;
3. The nature and value of the Business Courtesy is reasonable and appropriate to the recipient’s position and to the occasion, and is not likely to be
  reasonably understood by the recipient or viewed by a reasonable observer as a Bribe;
4. When taken together with Business Courtesies previously given to the recipient, the proposed Business Courtesy will not, in nature, value, or
  frequency, give rise to an appearance of impropriety;
5. The Business Courtesy will not impose a sense of obligation on the recipient, nor is there any expectation that Northeastern or anyone else will
  receive anything in return for giving the Business Courtesy;
6. The Business Courtesy is allowable under applicable law or regulation as well as the policies and standards of both the offeror’s and the recipient’s
  employers; and
7. The Business Courtesy is neither cash nor a cash equivalent, such as digital currency or a digital wallet.

Similarly, any member of the Northeastern community who intends to receive, or has already received, a Business Courtesy is responsible for obtaining approval and/or reporting it to the appropriate “gift approver” per the Policy on Conflict of Interest and Commitment, and otherwise following all university requirements related to handling or disposition of any Business Courtesy. Northeastern managers who authorize or approve a Business Courtesy, regardless of amount, are responsible for ensuring compliance with applicable university policies.

Private Sector Employees

It is permissible to furnish modest Business Courtesies to employees of private-sector organizations so long as the action complies with the mandatory requirements set forth above, any budgetary limit or approvals, and with any related Northeastern policies, including the Policy on Travel & Expense Reimbursement.

Public Sector Employees and Officials

Special rules and laws apply to dealings with Public Sector Employees and Officials. Activities that may be acceptable when dealing with private-sector organizations or employees can be inappropriate or illegal when dealing with Public Sector Employees or Officials.

All those within the scope of this policy who interact with or manage activities related to a Public Sector Employee or Official on behalf of or related to Northeastern are responsible for learning and complying with the gift and ethics rules that govern those interactions, especially those for government employees and officials. Typically, these rules severely limit and, in some cases prohibit, the offering, promising, or providing of a Business Courtesy to a Public Sector Employee or Official, as well as the acceptance or receipt of the courtesy by a Public Sector Employee or Official.

Any plan to offer, provide, authorize, or approve a Business Courtesy to a Public Sector Employee or Official or Public Sector Entity must satisfy the mandatory requirements set forth above in Section B. To avoid even the appearance of impropriety, a Business Courtesy should generally not be offered, promised, or provided to any Public Sector Employee or Official involved in a recent, pending, or imminent decision concerning the university.

Business Courtesies for Public Sector Employees or Officials may not include cash or cash equivalents, including gift cards/certificates. If a Business Courtesy has no established fair market value, the Northeastern representative seeking to give the courtesy must first obtain the approval of the appropriate university authority and the OGC before offering or promising the courtesy to the Public Sector Employee or Official. Note that, in some circumstances, notice to, or written permission from, the recipient’s government organization may be required under applicable law or at the guidance of the OGC before completing the offer or provision of a proposed courtesy.

Using university funds to pay for travel or lodging expenses for Public Sector Employees or Officials is generally not permitted. Requests for an exception to authorize travel- or lodging-related expenses for academic- or business-related purposes for a Public Sector Employee or Official must be obtained in writing from the requestor’s Northeastern unit Senior Vice President (SVP) and the OGC prior to the travel or lodging being offered, booked, or incurred. Using university funds to pay for travel and lodging expenses, or for the reimbursement thereof, for the spouse, significant other, child, or other relative of a Public Sector Employee or Official is not permitted.

Please consult with the OGC if you need assistance with evaluating a proposed Business Courtesy.

C. Fraud

No person or organization associated with Northeastern—including faculty, staff, agents, subsidiaries, and anyone providing services for or on behalf of the university—may participate in any Fraud-related behavior, activity, or transaction that involves or otherwise relates to the university.

D. Money-laundering

No persons or organizations associated with Northeastern—including faculty, staff, agents, subsidiaries, and anyone providing services for or on behalf of the university–may participate in Money-laundering activities that involve or otherwise affect the university.

E. Obligation to Speak Up

Questions regarding this policy should be directed to the resources listed under “Contact Information” below. Employees are expected to speak up about any actual or potential activity that may violate this policy by using the university’s reporting channels, including the University Hotline at northeastern.ethicspoint.com.

Members of the broader university community who have a concern about actual or potential activity that may violate this policy may report it by using the University Hotline, including the anonymous option where permitted by law, at northeastern.ethicspoint.com.

See the University Policies home page for important information on disciplinary and other actions that can result from violating this policy.