Gift-Giving and Bribery

Gift-giving

It is merely an act of extending goodwill to an individual in an effort to share

something with them.

Giving gifts to customers, clients, and business partners in a common practice in

the business community.

It is normally observed during special occasions like Christmas, New Year, and
sometimes even during birthdays.

Businesses usually engage in gift-giving for

the following reasons:

To show appreciation for a favor received.

To effectively establish goodwill with business partners

To advertise; and

To compete effectively against competitors.

Is Gift-Giving Ethical or Unethical?

Business gifts of clients and business associates can raise conflict of interest problems,
and knowing where to draw the line, between what is right and wrong is not always
easy .
Gift-giving in the Philippines and other
countries
Preparing for a business meeting requires a working knowledge of the information to be
discussed or presented, careful attention to all details on the printed material to be
distributed, and perhaps a gift. This gift is a social gesture that may be expected in some
countries, and could be considered a bribe in others. Knowing the gift guidelines for the
country you'll be visiting will help make your meeting a success.
Some multi-national companies and some governments have very strict policies
regarding their employees accepting gifts. To avoid creating a problem, it's imperative
you learn the policies for the companies you do business with.

 Countries like Malaysia and Paraguay, concerned with corruption, frown upon any gift
that could be construed as a bribe. In Malaysia you wouldn't give a gift until you had
established a relationship with the person. In Singapore, government employees are not
allowed to accept gifts, and the United States limits the acceptable dollar value to $25.
Factors in determining the morality of gift-giving
1. Value of the gift
2. Purpose of the gift
3. Circumstances under which the gift was given or received
4. Position between or relationship of the giver and receiver
5. Acceptable business practice in the industry
6. Company policy
7. Laws and regulations
Value of the gift

Nominal Value these are offered as the gesture of common

courtesy.

Example: inexpensive bottle of wine, free passes to the movies, gift

certificates, etc.

Substantial Value of considerable importance, size and worth

Example: house and lot, car, vacation tour, jewelry etc.

Value of the gift
The term nominal or substantial in this point of view is relative. It varies on beliefs
and culture of a particular group of people and society.
In majority point of view, a valuable gift is definitely unethical. It is for this main reason
that the goodwill motives of the giver are open to doubt.
Purpose of the gift
As long as the gift is not intended or received as a bribe and remains nominal, there
doesnt appear to be any serious problem.

Difference between Gift and Bribe:

Gift something of value given without the expectation of anything in return.

Generally done in the open and not in secret.

Bribe is given in the hope of influence or benefit, usually done in secret and
often insisted upon.
Circumstances under which the gift was given or received
Reasons:
Attached to an occasion (holidays, special events, etc.)
Unattached to any occasion
Manner the gift was given:
Open
Secret
Position between or relationship of the giver and receiver
In superior and subordinate relationship, for instance, the donors or recipients have to
make it clear that they dont intend to allow the gift to influence their actions and
decisions.
Acceptable business practice in the industry
Monetary gifts and tips are usually practiced in numerous service industries. When
gratuities are an integral part of customary business practice, they are far less prone to
pose moral questions.
Company policy
If firms explicitly forbid practice of gift giving and receiving gifts to its customers,
vendors or suppliers, associates, or corporate directors, then gift-giving would normally
be wrong.
Laws and regulations

Certain federal, state or local government institutions may impose laws that forbid
accepting gifts from firms with which they do business. When these gift transactions
violate the law, they are clearly unacceptable.
Still, the ultimate moral judgment hinges on whether an objective partly could reasonably
suspect that the gift might lead the recipient to sacrifice the interest of the firm for his/her
own personal gain.
Bribery

A practice of giving remuneration for performance of an act that is inconsistent

with the work contract.

It is intended to induce people inside the workplace.

It is identified to be a form of corruption and is generally immoral and for most is

illegal.

Examples:

A motorist offers a certain amount of money to a police officer in order not to be

issued ticket for over speeding.

A narcotics smuggler bribes a judge to lessen criminal penalties.

Why bribery is unethical?

It is generally used as an instrument to gain personal advantage.

It corrupts the concept of justice and equality.

It produces cynicism and a general distrust of institutions.

It destroys people's trust in the integrity of professional services, of government

and the courts, of law enforcement, religion.

It treats people as a commodities.

Reference :
https://prezi.com/nzfopaambq6j/gift-giving-and-bribery/