The event takes place outside of business hours C The event is sponsored by a third party
You may invite employees to a sponsored event if: A Everyone is charged the same registration B The event takes place outside of business hours C The event is sponsored by a third party
The Correct Answer and Explanation is:
Correct Answer: A. Everyone is charged the same registration
Explanation
When deciding whether employees may be invited to a third-party-sponsored event, the most important ethical and compliance consideration is fairness and the appearance of impropriety. The correct condition under which employees can be invited is “A. Everyone is charged the same registration.”
This rule ensures that no employee is given special treatment or undue advantage that could be perceived as a conflict of interest or as a form of bribery. If some employees are offered free access or discounted rates that others are not, it could be seen as an inappropriate gift or benefit, especially if the event sponsor has business interests with the company. Equal access through standardized registration fees maintains transparency and compliance with corporate policies and industry regulations.
While options B (“The event takes place outside of business hours”) and C (“The event is sponsored by a third party”) may describe circumstances around the event, they are not sufficient on their own to justify inviting employees. An event occurring after business hours does not remove the potential for ethical concerns. Similarly, the fact that the event is sponsored by a third party does not automatically make it permissible—it must still meet internal policy guidelines regarding gifts, hospitality, and conflicts of interest.
Company policies often emphasize that participation in events must not create real or perceived pressure on employees to reciprocate or show favoritism toward a vendor or client. By requiring that everyone is charged the same registration, the company avoids these risks and promotes an ethical culture.
In summary, the key issue is equity and transparency. Charging all participants the same ensures the event does not serve as a covert form of influence or favoritism, which aligns with professional standards and good corporate governance.
