Gifts @IPCOM
Gifts can be given to give pleasure or show gratitude. A thoughtful gift is sometimes an easy way to improve morale and keep clients happy. Some gifts can be acceptable business costs, such as taking a client to dinner. However, there is a line that you can’t cross. Knowing when a gift becomes a bribe is essential knowledge…
What is the difference between gifts and bribes?
A gift is something of value given without the expectation of return. A bribe is the same thing given in the hope of influence or benefit. A bribe has the intended purpose of influencing someone to get a favorable business decision.
For example: If you reward an employee with champagne after sealing a big deal, this is a gift. There is no influence the champagne can provide, as the deal has already gone through. BUT: if you are in the middle of a negotiation process with a supplier and this supplier invites you for a meeting in Berlin, pays your flight and accommodation in a full five-star luxury hotel, this smells like a bribe... Why? Because it occurs during contract negotiations. The stay can influence the proceedings and give them a more desirable outcome.
When is a gift acceptable or unacceptable?
Acceptable gifts are:
- Of nominal value (e.g. calendars, mugs, pens, ...): low value gifts usually do not create a sense of obligation in the receiver that will influence the exercise of his or her official duties;
- Promotional of nature;
- Clearly related to business;
- AND offered during the normal course of doing business.
Gifts should be reasonable, proportionate, and appropriate in the circumstances. Within IPCOM gifts up to €100 are acceptable. But, even below this threshold, remember to always consider the intention of gifts.
Unacceptable gifts:
Gifts should NEVER be given in order to secure any improper advantage, or to materially influence a business decision. Giving, offering or promising something of value to influence or benefit is active bribery. When a person requests, receives or accepts a bribe, it is passive bribery.
Circumstances that are NEVER permissible:
- A “quid pro quo”, “getting something for something” (= gifts or hospitality offered for something in return), even if the gift is small in value;
- Gifts in the form of cash or cash equivalent vouchers;
- Entertainment of an inappropriate nature;
- Gifts and entertainment, or other advantages, for any closely related individuals to the Government or Public Officials; or
- Gifts, entertainment, or other advantages provided at/to a private address.
Bribery and corruption at work can be a serious issue and can cause reputational damage. Ignorance is no excuse! This means it’s important to understand bribery and corruption and to learn how to identify bribery and corruption in the workplace. Only this way you can arm yourself against it!
