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Members of the Stanford community are required to act with honesty and integrity and comply with applicable laws at all times when transacting University business. This guide memo clarifies that all forms of bribery and corruption are absolutely prohibited, provides guidance regarding what constitutes bribery and corruption, and requires reporting of actual or suspected incidents of bribery and corruption. This guide memo has been drafted to comply with the requirements of the U.S. Foreign Corrupt Practices Act and the United Kingdom Bribery Act. Many countries also have local laws prohibiting bribery which must be followed by members of the Stanford community when conducting activities in or involving those countries, including contracting with third parties whose acts can pose liability for the University under the FCPA and local laws. Bribery does not need to take place in the foreign country to fall within the purview of FCPA or local anti-bribery laws. For example, entertainment provided in the United States for the purpose of influencing decisions and related activities could violate the FCPA and local anti-bribery laws. In addition to institutional consequences to the University, individuals who violate anti-bribery laws may be subject to personal fines or criminal prosecution.

a. Bribery

(1) To offer, give, or promise to another person any financial or other advantage with the intention to induce or reward that person or another person to perform his or her responsibilities or duties improperly or to give an improper advantage.

(2) To request, agree to receive, accept, or direct a financial or other advantage for oneself or others if such advantage is intended to induce or reward improper performance of one’s responsibilities or duties or to gain an improper advantage.

(3) To do either (1) or (2) without the intention to induce or reward improper performance of duties or responsibilities or gain an improper advantage, but which nonetheless could reasonably be interpreted as such an inducement or reward.

b. Facilitation Payments
Facilitation or “grease” payments are any payments, no matter how small, given to a government official to increase the speed at which they do their job. Such payments are not permitted under this policy. Only a payment to speed up a governmental act that is not discretionary in nature would potentially be considered a permissible payment. For example, this could include speeding up a business registration license or permit approval or customs processing, only if such government acts simply involved the payment of a standard fee and the permit or registration was automatically issued.

c. Public Official
Public officials include not only employees working in government departments, but also may include employees of government owned or controlled commercial enterprises, universities and research institutions, international organizations, political parties and political candidates. Public officials also include the family members of any of the employee groups listed above.

a. Bribery Prohibited
Stanford University has a zero tolerance policy towards bribery and corruption. All forms of bribery are prohibited. A bribe does not actually have to take place or be accepted; offering or agreeing to accept a bribe is itself a violation of the Policy. Facilitation payments are not permitted under this guide memo, even where such payments may be allowable under U.S. law.

b. Forms of Bribery
A bribe is defined as anything of value. Bribery can take many forms in addition to cash, for example:

• Cash equivalent such as stock shares;
• Unreasonable gifts, entertainment, travel expenses or other hospitality;
• Unwarranted rebates or excessive commissions (e.g. to sales or marketing agents);
• Unwarranted allowances or expense reimbursements;
• Political/charitable contributions;
• Uncompensated use of University services or facilities;
• Kickbacks; or
• Anything else of value

c. Prevention of Bribery
Members of the Stanford community should assess the risk of bribery in the activities under their purview and take appropriate care to prevent and detect bribery. Certain countries have a high incidence of corruption, and particular care should be taken when undertaking activities in or involving those countries. For information regarding high risk countries, see the Transparency International Corruption Perceptions Index. Appropriate steps could involve training of employees concerning this guide memo and reporting requirements, requiring due diligence before engaging third party service providers, ensuring that contracts contain anti-bribery provisions, and requesting guidance from the Office of the General Counsel before expanding operations into a new geographic location. Failure to take such steps to prevent and detect bribery creates legal risk for the University and potential personal liability for individuals involved.

d. Dealing with Government Officials
While this Policy applies to both the public and private sectors, dealing with public officials poses a particularly high risk related to bribery and corruption. Members of the Stanford community should be especially cautious when dealing with public employees, including faculty and staff at public universities or workers at state-owned enterprises. Local laws often severely limit what a public employee may receive and there can be greater legal liability for giving inappropriate advantages to a public employee.

e. Dealing with Third Parties
Stanford could be liable for improper payments made by a third party acting on its behalf, such as a contractor, consultant, agent, or research partner, even if the University did not authorize the payment. When entering into a relationship with a third party, members of the Stanford community should complete sufficient due diligence to ensure that the retained individual or organization does not have a history of corrupt payments, and understands and agrees that they are not authorized to engage in bribery on Stanford’s behalf.  The level of due diligence required may vary depending on the level of risk involved in the transaction, e.g. whether the third party will be interacting with government officials on behalf of the University or whether the services will occur in a country that involves a high risk of corruption. Care should be taken to ensure vendors’ understanding of and commitment to compliance with anti-bribery laws when entering into engagements with expeditors to provide logistical support for international activities such as air and ocean freight consolidation and forwarding, vendor consolidation, customs clearance, and distribution activities. Faculty and staff intending to retain firms for freight forwarding or customs services should first consult with Procurement (www.stanford.edu/group/fms/fingate/finsystem/iprocure/howto/create_standard_req.html).

f. At a minimum, members of the Stanford community should ensure that third parties do not have a history of violations of anti-bribery laws, provide them a copy of this guide memo, which can be located at adminguide.stanford.edu/print/chapter-12/subchapter-1/policy-12-1-2, and regularly audit their activities to ensure ongoing compliance. Any agreements with third parties must include provisions that they will comply with the FCPA and any applicable local anti-bribery laws.

a. Questions regarding this Policy and Reporting Suspected Violations
For further information regarding this Policy, contact the Office of the General Counsel (650-723-9611) or the Office of International Affairs (650-725-0076). Known or suspected violations of this guide memo must be reported to the Compliance & Ethics Helpline (650-721-2667 or compliance@stanford.edu) or to the Office of the General Counsel.

b. Consequences
Violations of this guide memo could result in criminal or civil penalties against both the University and involved individuals in the United States and abroad. Some countries take broad jurisdiction over bribery and corruption offenses, so violations in one country could result in extradition to and prosecution in another country. Violations of this Policy could also result in appropriate disciplinary action up to and including termination from employment or other relationships with the University.

c. Non-Retaliation Policy
The University is committed to ensuring that members of the Stanford community can speak up with confidence if they have any concerns or need to ask for guidance. If any person suspects or observes anything that they believe might be a violation of this guide memo, they are obligated to report it and cooperate in any investigation if requested. Stanford will not tolerate retaliation against any person who makes a good faith report or participates in an investigation of a suspected violation.

a. Global HR Programs
University Human Resources and Global HR Programs are responsible for developing, monitoring and overseeing employment policies and providing the University with support services necessary to attain staffing objectives outside of the US.

b. Human Resources Manager
Human Resources Manager is the person responsible for administering recruiting and hiring policy for each unit or organization, in consultation with Global HR Programs.

c. Hiring Supervisors
Hiring Supervisors are those faculty and staff designated to make staff hiring decisions. Hiring supervisors are responsible for making such decisions in accordance with the policies and procedures established by the University and set forth in this Guide Memo. Each hiring supervisor is accountable for his/her actions in matters relating to applicable sections of this policy and compliance with regulations governing employment and performance in the country of hire. Questions on these policies should be referred to the Human Resources Manager and/or Global HR Programs.

a. Compliance with Laws in Country of Hire
Employees assigned or working outside of the US are subject to applicable law in the country of hire as well as University policy and procedures when not in conflict with in-country law.

b. Business Purpose
Hiring, transfer or assignment of regular staff outside of the US must be supported by a demonstrable University business purpose, and approved in writing by the cognizant School Dean or VP. Copies of such approvals should be forwarded to Global HR Programs and FMS/Global Business Services.

c. Administrative Costs
Employing workers outside of the US typically involves significant additional costs in light of the regulatory and operational complexity involved in such assignments. Accordingly the supervisor hiring or assigning the employee outside of the US is responsible for ensuring that the added expense of such an assignment is covered by the applicable budget for the duration of the expected employment.

d. Work Authorization
Work authorization and immigration issues may require significant lead time. HR Managers are responsible for ensuring that appropriate documents are secured prior to employment outside of the US. Human Resources cannot process a hire until the proper work authorization is obtained. Candidates who are citizens or hold on-going work authorization for the country in which the project is located are considered “in-country” hires. These employees may be paid in the country’s currency by a University-approved payroll provider.

e. Consulting Arrangements
It should be noted with caution what may appear to be a consulting arrangement by US standards could in fact constitute an employment relationship in another country, potentially triggering employment, tax and other regulatory considerations.

a. Job Descriptions
Global HR Programs will maintain a library of global job descriptions in a standard format. The hiring supervisor identifies the functions of the job, defines and describes the duties and responsibilities of the position, including required training, and develops objective criteria for the selection process. The unit Human Resources Manager reviews the description for clarity and content and works with Global HR Programs to define a recruitment strategy.

b. Announcing Job Openings
All regular vacancies must be listed with the unit’s Human Resource office and Global HR Programs. Due to the specific requirement of working outside of the US, global jobs are not posted online in the Stanford Careers website.

c. Recruitment of Applicants
Hiring supervisors should consult with the unit’s HR Manager, and ask for a copy of the Global Activities Checklist for Stanford University Human Resources Managers.

d. Search Firms
Global hiring situations may require the use of a search firm in the country of hire to develop a candidate pool. Consult with the unit’s Human Resources Manager and Global HR Programs before making any arrangement with an outside firm or agency.

a. Employment Application Form
All interviewed applicants must complete and sign an application form. Applicants may cross out sections on the form that do not apply in the country of hire. At a minimum, the form must contain the employee’s legal name, current and former employer and dates of employment, including latest salary information, and highest education level with name of school awarding degree or diploma.

b. Interviewing
The hiring manager and/or interview committee interviews the candidates selected through the recruitment process. Initial interviews for job assignments outside of the US may utilize video conferencing and/or video recording. In all cases, the final candidate should be interviewed by the hiring supervisor in person. Finalists should be scheduled for a phone or video interview with campus stakeholders if appropriate.

c. Testing
When used, approved tests must directly relate to essential job functions and be given to all applicants or finalists under the same or equivalent conditions. The test must be scored, evaluated and used as a selection factor equally for all applicants or finalists.

d. Reference Checks
The hiring supervisor is required to obtain a minimum of two reference checks from previous employers. Reference checks must be part of the candidate’s evaluation and may be used as a factor in the hiring decision if the information is job-related. No offer of employment can be made before completing the hiring process, including reference checks.

e. Background Checks
Background checks (appropriate to the country in which the hire is being made) are conducted for all final candidates. No offer of employment can be made before completing the hiring process, including a background check.

f. Criminal Records
A criminal record will not automatically disqualify a job applicant. An applicant with a criminal record can only be barred from employment if the circumstances are reviewed by the unit’s Human Resources Manager, Global HR Programs and Employee and Labor Relations. In many countries, potential employers may not request prior criminal conviction records for job applicants. Stanford’s background check provider will advise on what information can be legally obtained during the hiring process.

g. False and/or Misleading Statements
Withdraw from consideration any applicant found to have misleading and/or false statements on the employment application or other documents.

h. Review of Personnel Files
Hiring supervisors have access to personnel files of current and former University employees who are finalists for the position. No offer of employment can be made before the hiring supervisor or Human Resources reviews the personnel files.

a. Hiring Decisions
The hiring supervisor and/or next level of management is responsible for judging the relative qualifications of each applicant and for making the hiring decision, consistent with University policy and applicable governmental laws and regulations. The unit’s Human Resources Manager and Global HR Programs is responsible for reviewing proposed hiring decisions and for facilitating compliance with each country’s regulations, laws, and/or University employment policies.

b. Employment Offers
(1) Timing of Offer
Employment offers should be made after the employment action (including in-hire salary) has received all required approvals and after successful completion of the background check.
(2) Employment Offers
An offer letter must be issued by the hiring department to the successful applicant for positions with work locations outside of the US, using an approved country offer letter template. Depending on the country of hire, an employment contract may also be required. All such documentation should be reviewed with Global HR Programs to assure conformity with law in the country of hire and University policy.

c. Documentation and Record Keeping
(1) Pre-Employment
New, transferred, rehired or promoted employees may not start work in the new position until all appropriate forms have been signed and processed. This may include an employment contract or agreement, government tax withholding forms, or other forms as required in the country of hire.
(2) Patent and Copyright Agreement
All employees must complete a Stanford-approved Patent and Copyright Agreement Form as a condition of employment.

In addition to Vacations, Sick Leave and Paid Holidays, Stanford employees or employees of affiliates may be eligible for paid absences in compliance with regulations in the country of work. Many countries require paid leaves for circumstances such as the employee’s wedding, meeting civic requirements, etc. Paid time off should be granted as appropriate, with verification of the event and the law requiring payment after consultation with Global HR Programs and/or Global Business Services/Payroll.

The University or its affiliates will provide unpaid leaves of absence as required by law in each country and in conformance with general University policy regarding unpaid leaves. Consult with Global HR Programs if such leave is requested.

Each leave of absence must be for a definite period with specific starting and ending dates. A leave cannot extend beyond the end of a fixed-term appointment or employment contract.

As the law in each country varies widely on the release of employees to return to work following leave, Global HR Programs should be consulted if an employee fails to return to work.

Stanford or its affiliates offer a variety of retirement plans to international employees, depending on the country of work and citizenship of the employee. When it is not feasible to offer a retirement plan in a country, a monthly retirement allowance is provided in lieu of a formal retirement savings plan. Refer to Global HR Programs to determine eligibility for retirement benefits outside of the US.

University Administrative Guide requirements to be an Official University Retiree may apply to global employees, depending on the relationship of the affiliate. Refer to Global HR Programs to determine eligibility.

• US Taxpayers returning to the US: Official Retirees who are US taxpayers may participate in University-provided US retiree medical and dental plans on the same basis as campus employees. At age 65, retirees and spouses must apply for and maintain Medicare Parts A and B.
• Official International Retirees: Official Retirees who are not US taxpayers do not qualify for US retiree medical plans as they are not eligible for Medicare. They may be eligible for Perquisites.
• Perquisites: All Official Retirees may use University libraries and recreation/athletic facilities and receive staff discounts for certain athletic events, as provided by the rules and policies of the department which provides the services or facilities.

An “international employee” is defined as an employee of Stanford University whose work site is located outside of the U.S. and its territories for any relevant tax period, generally at least six months in any calendar year. This includes employees who are telecommuting under an arrangement specifically approved by their business unit that permits the employee to work remotely in an international location. All individuals defined in Guide Memo 2.2.1, are considered employees for the purpose of this Guide Memo.  Consultants, contractors and volunteers are not covered by this Memo.

a. Stanford University international employees are subject to all employment and other related laws of the country, city or region in which they work.

The existence of Stanford University employees outside the United States may trigger additional compliance requirements including, but not limited to those relating to local jurisdiction employment, payroll tax and statutory benefits regulations. These requirements are likely to impose significant additional costs on the unit employing the individual. Therefore, hiring or assignment of employees to international positions, or telecommuting from an international location must be supported by an important University business purpose and not be merely an accommodation to the employee.  Such placements must be supported by compelling programmatic justification and demonstrated skill requirements that can only be met by hiring or transferring a Stanford employee in that role. The manager, with support from central administrative offices identified below, is responsible for evaluating the impact of the proposed arrangement on programmatic need and performance management objectives and for ensuring that the arrangement is in compliance with local laws and University information security and privacy requirements.  Further, individual employees bear the responsibility of evaluating and managing the impact of an international working arrangement, including, but not limited to, immigration, personal tax implications and additional costs that may be difficult to anticipate.

The school or unit approving the assignment is responsible for monitoring compliance with University, U.S. and international regulations, including but not limited to: visa and work authorizations,  tax law, employment regulations anti-corruption legislation, in-country banking and money handling, privacy and data protection. Guidance is available from Stanford’s global compliance administrators (Global Business Services, Internal Audit & Institutional Compliance, Risk Management, Office of General Counsel and Global HR Programs).

b. Approval
Approval of the hire, assignment or telecommuting arrangement must be obtained in advance in writing from the responsible Vice Provost, Vice President (or similar level equivalent to the highest administrative person within the organization unit), or his/her designee, identifying the key University business reasons for the assignment. All telecommuting arrangements must be consistent with the guidance provided for Flexible Work Options.  In addition, Global HR Programs and Global Business Services must be consulted prior to any commitments made to employees or prospective employees. Units must anticipate significant lead time and additional funding that may be required to implement a proposed international hire or assignment.

c. International Employment Relationship
Units are advised that it may not be possible to establish a Stanford University employment relationship in another country. If the presence of a Stanford employee triggers a requirement to register in-country, approval is required by the Senior Associate VP for Finance and General Counsel. If the requirement necessitates the establishment of a legal entity in country, approval of both the Vice President of Business Affairs and General Counsel will be required.  There must be persuasive business reasons and expectation of significant ongoing Stanford University presence in country to justify establishment of new legal entities. Due to the very significant compliance obligations of such actions, these steps require due consideration and advance planning. Stanford will not elect registration out of country for a single employee.

If a direct employment relationship in country is not appropriate, it is recommended that consideration be given to outsourcing arrangements with a temporary staffing agency or affiliating with an in-country partner. Global Business Services and Global HR programs are available to consult on available options, and develop required agreements.

d. Administrative Costs
International assignments, hires or telecommuting arrangements require due diligence and may trigger the need for tax and legal consultation outside of the University. The assigning unit is responsible for all externally incurred costs incurred as a result of engaging in an international employment relationship. Failure to notify Global Business Services of the proposed placement of an international employee can result in after-the-fact implications which can be of considerable cost to remedy, and which will be borne by the unit.

e. Taxation
United States citizens and residents are taxed on their worldwide income. The US is signatory to a network of international double tax treaties which may, under some limited circumstances in certain jurisdictions, protect employees from double taxation in the US and the country in which they are working. However, there are many countries in which income and payroll taxes may be due and payable by individual employees, or which may create employer withholding obligations in country that are difficult to discharge due to lack of registration status. Units are cautioned that international taxation can be extremely complex and is fact and circumstance driven, requiring consideration of individual and family circumstances. Consultation with external experts is frequently required and resulting costs will be borne by the assigning unit. By policy, Stanford does not sponsor tax equalization between jurisdictions with different tax rates. Employees are expected to absorb these costs individually, and are strongly advised to consult with a professional international tax advisor prior to committing to an international assignment. 

f. Benefits
In-country statutory benefits and Stanford-provided health and welfare benefit plan choices may be  different from those offered to employees who work on Stanford’s California campus. Contact Global HR Programs for international employee benefit information.

g. International Social Security Totalization Agreements
Employees who have divided their careers between the US and another country may incur dual Social Security taxation on the same earnings in both countries. Totalization agreements may eliminate dual Social Security taxation and may help fill gaps in benefit protection for workers. The US has executed totalization agreements with a number of countries, primarily in Europe. The list of current agreements can be found at U.S. International Social Security Agreements.

Consult with Global Business Services to determine if an assignment may trigger a social security tax exemption and resulting requirement to obtain a certificate of coverage.

h. When Employee Works in California
University Payroll must be notified of any days that the international employee is present in California on Stanford business. Compensation earned on such days is considered California-sourced taxable income regardless of employee’s country or state of residence and is subject to all California tax provisions. The international employee is responsible for submitting the Out-of-State Employee Days Worked in California form to report the number of days an international employee works in California.

Employees who travel frequently, or who are assigned internationally are advised to proactively track days spent  outside of the US, by country, for purposes of individual tax filings.

i. HR Administration
International employees are tracked as a separate group in the University’s HR Information System.  Forms to provide the information necessary to enter the data into the system are available through Global HR Programs.  New employee information, change in information and employee termination actions are handles by University HR Transactions Services.  HR administration for international employees is provided by the unit’s own HR team.  Additional assistance is available from University HR through Global HR Programs; email mailto: globalhrprograms@stanford.edu.

j. Registration of Foreign Activity
Stanford is required to report the number of international employees annually to the federal government. Accordingly, units are requested to register the activity relating to the foreign hire or assignment in the Foreign Activities Registry maintained by Global Business Services.

For international employees, visit Global Business Services.