The giving and receiving of gifts in the corporate world can often play an important role in helping to build business relationships.
However, organisations must be aware that there is a very fine line between a simple gift or hospitality gesture and an act of bribery.
Major holidays like Christmas and Easter are a prime time for firms to fall into the trap of accepting a gift that was given to them for dishonest and unethical means, leaving them vulnerable to accusations of unlawful conduct.
So, in order to get this right, businesses and employees need to understand when a gift is appropriate or inappropriate, and whether it was given out of honest goodwill, for something in return or to influence your decision in some way.
Some gifts and hospitality are perfectly reasonable and legitimate - for example, providing refreshments, a meal or overnight accommodation to interview candidates.
But it is best to avoid gifts like expensive tickets or access to exclusive events. If you have to give a gift, stick to something of token value.
Ensure that you set a company policy with clearly defined rules and that it is communicated to all employees. Then, the thresholds and limits are clear, whether in terms of single occasions, ongoing periods of time, or relationships.
Consider what other events are happening around the same time a gift is given or received. For example, are there job vacancies, a tendering process, or contract negotiations? If so, any hospitality may be seen as an attempt to unduly influence the outcome.
By applying these tests, they can quickly decide what is acceptable:
Finally, are there any conflicts of interest, or would there be a perception of one?
Making information regarding gifts and hospitality publicly available can reduce the number of submissions that are declined. This way, your company's corporate gifting is completely visible to everyone.
Ensure that gifts and hospitality are declared in a Gifts & Hospitality Register (such as the number and value of gifts, whether it was accepted or declined, who the donor and beneficiary were, etc.).
The register can be as simple as a spreadsheet for small businesses, whereas larger organisations tend to use RegTech tools.
Check your register regularly to ensure that limits and thresholds are being kept up-to-date and complied with.
Even when the individual or total value of gifts is not high, there may be a perception of wrongdoing or impropriety, which can damage your company's reputation. Often, large volumes of small gifts can easily go under the radar.
Ask your manager, finance or compliance team if you are ever in any doubt. Particularly if you feel obliged to accept hospitality or a gift to avoid offence or for cultural etiquette reasons.
Policies often focus on business relationships, but there can be grey areas when personal and professional lines blur. Clarifying rules for personal connections can prevent conflicts.
With the rise of online vouchers, e-gift cards, or digital subscriptions, policies may need to explicitly cover these, since they can have a similar influence as physical gifts.
Procedures for returning or reporting misdelivered gifts are often overlooked. Clear guidance prevents unintentional policy breaches.
There can be confusion between token promotional items versus gifts that could influence business decisions. Policies often need to clarify thresholds.
Our Essentials library contains e-learning content designed to help organisations meet fundamental compliance requirements and features courses that help your staff understand anti-bribery compliance. If you are looking for focused training, our Bribery Prevention Training Package offers a complete solution for your compliance programme. Courses in our training package include:
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