Ina Teves, Organizational Development Consultant

Ina Teves is an organizational development consultant with a change management firm dedicated to making a difference wherever it goes by journeying with the client through the entire process of organizational transformation. Email your questions to ina.b.teves@gmail.com.

The Ethics and Etiquette of Business Gifts

Dear Ina,

Our company has recently informed all everyone that all employees and officers are no longer allowed to receive any kind of gift from suppliers and clients beginning this holiday season. Many of us feel that the rule is too strict and that some well-meaning suppliers or business partners might be offended if a gift were refused. When is it okay to receive a gift?

Louie

Dear Louie,

Your company is one of a growing number of organizations that have put out a policy on receiving gifts – and with good reason. Gifts often are given as a gesture of goodwill, but overly generous business gifts tend to put pressure on the recipient to extend more than just goodwill to the giver.

Receiving Gifts

Where then does one draw the line between a gift and an effort to exert undue influence? The bottom line on receiving business gifts is (a) whether, after having received the gift, you would still be able to conduct business fairly and (b) whether your stakeholders – directors, business partners, co-employees, clients, and the general public – will perceive your interactions with the donor as fair and impartial.

Here are a few tips on receiving gifts:

1. Follow your company’s policy. If your company policy says “no gifts” then it is best to inform your suppliers as soon as possible. Your company may have an official Christmas message that you could use. If you are the gift-giver, find out what gift-giving policies your target companies have. Some companies define a maximum acceptable amount. Others would rather you donated to their favorite charity.
2. Determine if there is a conflict of interest. Gifts are normally given to show appreciation for help given or for a job well done. This implies that the business task has been accomplished and that there is little opportunity for the recipient to make a biased decision in favor of the gift giver. So ask yourself:
   1. Is the gift giver looking for business with your company?
   2. Are there any other matters of interest to the gift-giver that are currently pending with your company?
   3. Are you in a position to influence decisions on the gift-giver’s behalf?
   4. Will you personally benefit from receiving the gift?
   5. Would you be comfortable discussing the gift with your supervisor or co-employees?
   6. If there a pattern or regularity to the gift-giving? For example, are you always given something at the end of a transaction with the same person or organization?
   7. If the gift were a free lunch, dinner, or all expense paid trip, is it in connection with a legitimate business transaction? Is it done at a reasonably priced outlet?
3. Cash gifts are unacceptable.
4. Do not solicit gifts from suppliers or customers for your annual company outing or Christmas party, or for any other reason (e.g., your boss’s birthday). It is of questionable taste to do so, at the very least.
5. A handwritten thank you note demonstrates thoughtfulness and good breeding.

If you answered yes to even one question, you may want to reconsider receiving that gift. If you’re not sure what to do, speak with your supervisor or with your HR department. It is important to lay it out in the open to underscore your desire to keep everything aboveboard. You might also want to check out this web resource on ethical practices: http://www.web-miner.com/busethics.htm.

Giving gifts

In giving gifts, the principle is to give with the recipient in mind. Give to show genuine appreciation and goodwill. Here also are some guidelines on giving gifts:

1. When dealing with organizations from different countries, find out what their gift-giving customs are. Find out what it is that they would appreciate and value and what might be offensive. You will show that a lot of thought went into the gift. Gifts that would remind the recipient of your country would be valued.
2. Find out what it says in the code of ethics of your target organization or profession. There are codes of ethics for doctors, lawyers, government officials, pharmaceutical companies, and journalists. You will avoid embarrassment and unnecessary expense by researching what these are.
3. Small, inexpensive gifts with a personal touch are always appreciated. Find out what your recipient’s interests are. Attach a card with a personal message to your gift. Be careful not to give gifts that are too personal such as lingerie and perfume.
4. Gifts that are too expensive put pressure on the recipient to reciprocate at the same level. A token of appreciation really is just that, a token.
5. If you are going to give gifts to several people in an organization, follow the hierarchy. The higher the position, the greater the value; however, the same thought and care should be given to choosing gifts for a secretary as for her boss. Your gift should say that you went to a lot of effort to find this gift.

Gifts serve to punctuate a harmonious business relationship and are not meant to substitute for it. Subordinates will always appreciate a fair leader. Co-employees will always value an effective team member. Clients will always remember and value how well we delivered on our business promises. The general public will always respect the probity of public officials. Now those are no mere tokens.

Happy Holidays!