Handing of gifts have always been used as a way to leverage business relationships. Gifts and other forms of rewards are considered unethical in the corporate world if the expectation is to get favorable contractor services. Giving out gifts is a way to express gratitude love and appreciation, but whenever the intention of giving out the gift changes then it no longer is considered a gift. It is more of a bribe; because a person is given a gift, in return a person may expect a contact or seek a favorable judgment or some type of service. Recent time’s bribery is taking new form and twist as it can be in the form of gifts and rewards. It is unethical to giving out bribes in form of gifts to coerce someone into influencing a decision. This form of bribery has landed top management leaders in trouble.
Handing out of gifts can be confusing and can have an impact on any business related decision hence it is important for companies to establish a gift policy. It provides a company employee about what is regarded as a gift and what is not appropriate to accept as a present. The policy also defines when an employee is allowed to accept gifts from within the company and from outside sources. The gift policy is the best intervention that is capable of preventing employees from expecting favorable outcomes that they might expect out of the gifts they receive or hand over. The gift policy can also guide the management and other employees in whom to give gifts to. The policy also determines under what circumstances an employee may accept gives and under what terms. This policy can play an important role in determining what employees may receive and the policy can help employees from getting into trouble (Engle, 2010).
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To avoid any form of bribery in the business both the employee and management should be prepared. By preparations, a business needs to set clear guidelines and policies in the workplace. Employees should be aware of ethical behaviors that are allowed within the business. The organization should also monitor third-party agents. A common way of giving out gifts and amenities to employees through third-party agents. Distributors, suppliers and even resellers have been used to conduct an illegal activity within the business premise. The management hence needs to monitor the activities of these agents. Bribes can be given via extravagant gifts and rewards the management need to limit its generosity. A company should be keen from violating the foreign corrupt practices that categorize any form of gifts and rewards awarded to employees in exchange of service or contract is illegal and should not be accepted.
Employees should also do proper due diligence before accepting any kinds of gifts and amenities from the management and top leadership of any company. Before being involved in such a situation and transaction, the employee and the company should thoroughly run a background check of the person offering such kinds of gifts. This will enable a person to assess the kind of risk involved and determine the true intentions of the person offering such gifts. Identify procedures and processes that are involved in such situations, these procedures may be found in the company’s gift policy. The company should also engage its employees in awareness training that will inform and educate employees about the implications of giving gifts that are not in accordance with the company’s gift policy and guidelines. These training will educate employees on how to avoid such amenities and how to report such cases in the organization. This is a collective approach by the company in making and maintaining the company’s integrity ( Biegelman & Biegelman, 2010 ).
Coloplast a company that develops manufactures market medical products in North America was in 2005 accused of bribery charges by the Norwegian Hospital Director. The Hospital Director was at some point awarded a bribe in the form of a gift. The gift would see that Coloplast would supply medical equipment to the Norwegian Hospital. The hospital director declined the offer and later accused the company of bribery. This involved Coloplast Management and the hospital director. This is common in many places; the client is offered rewards and gifts to accept to accept tenders from the other commonly that is issuing the gifts. The accusations were that Coloplast main objective was to seek favor from the hospital director, he would have accepted the reward then the hospital would lend the tender to Coloplast. This allegations damage the reputation of the company and what followed were lawsuits that wanted Coloplast out of service. It severely damaged their reputation. This action was unethical because it was bribery in form of gifts and rewards. The gifts that would have been handed out would influence the decision of the director on what company should be awarded the tender to supply medical equipment. Due diligence was one of the interventions that the company would have carried out to avoid the bribery allegations. Coloplast should have followed policies and procedures in seeking the tender. This intervention would have prevented and avoided any chance of bribery (“Coloplast A/S accused of bribery - report. (Brief Article)”, 2005).
In conclusion, handing out gifts and services to employees and clients is unethical and can damage the reputation of an organization. It is a risky thing to do considering policies and guidelines exists that should be followed in case of such situations. The gift policy should be implemented by all organizations.
References
Biegelman, M. T., & Biegelman, D. R. (2010). Foreign Corrupt Practices Act compliance guidebook: Protecting your organization from bribery and corruption . Hoboken, N.J: John Wiley & Sons.
Coloplast A/S accused of bribery - report. (Brief Article) - Nordic Business Report | HighBeam Research. (2005). Retrieved from https://www.highbeam.com/doc/1G1-133054703.html
Engle, E. (2010). I Get by with a Little Help from My Friends. Understanding the U.K. Anti-Bribery Statute, by Reference to the OECD Convention and the Foreign Corrupt Practices Act. International Lawyer, 44, 4, 1173-1188.
