what is an acceptable value when giving or receiving gifts in a business situation course hero

by Deron Schroeder 3 min read

What is an acceptable gift policy?

Acceptable gifts: The policy should define what the company considers acceptable gifts. Normally this would include conventional hospitality, infrequent and modest tokens of appreciation and small, unsolicited gifts of a promotional nature that bear a company logo or advertising.

How to define the value of a gift?

For added clarity, the value of these gifts should be defined as below the threshold for unacceptable gifts. Approval and declaration: Even if the policy defines what may and may not be accepted, it is still best practice to have a clear approval and declaration procedure. Ideally all gifts should be approved.

What are the rules around gifting in business?

Thomson-Reuters published this useful general guide to common rules around gifting: Be mindful, too, of the personalized cover notes that accompany gifts. As the list under “Unacceptable Gifts” indicates, you don’t want your prospect or client to believe that the gift is a bribe for future business.

What happens to gifts received from other organisations?

Other organisations accept gifts, but when received, donate them to a non-profit organisation. Then there are some organisations where gifts received must be declared and it is maintained in registers. In other organisations, unsolicited gifts are shared with all employees.

Is accepting and receiving gifts in business ethics?

The acceptance of gifts, services and hospitality can leave an organisation vulnerable to accusations of unfairness, partiality or deceit, or even unlawful conduct. Commercial relationships may be subject to bias and an organisation's reputation for 'doing business ethically' will be put at risk.

What is gift giving in business ethics?

A reliable rule of thumb regarding workplace gift giving: Gifts should flow down the supervisory reporting line, not upward. Thus, a boss or manager may give presents to direct reports, and employees can laterally exchange gifts with each other. But employees shouldn't give gifts to supervisors.

Is gift giving ethical or unethical explain?

So, under what circumstances might accepting gifts be ethically justifiable? In broad terms, accepting gifts may be justifiable when they promote the principles of beneficence (doing good, particularly for the client) and nonmaleficence (avoiding harm, particularly to the client).

What is a gift in ethics?

Under the ethics regulation, a gift is anything that has monetary value which you obtain for less than "market value." The gift might be tangible or intangible.

What is the value of the gift?

Gift is regarded as a way to confer material benefit on the receiver [37]. The economic value of a gift pertains to the obtained advantage, a purely economic exchange between two parties.

What type of gifts are acceptable under the code of conduct?

Terms for Giving and Accepting Gifts In general, food items, food coupons, liquor and wine, and office-related items such as pen sets or other practical gifts are all safe bets. Even tickets to sporting and entertainment events make great gifts. Accepting bribes is a punishable offense.

How do I give a business as a gift?

The Etiquette of Gift-Giving in BusinessFollow the corporate guidelines. ... Consider your client's interests. ... Consider the cost. ... Rethink printing the company logo on your gift. ... Be appropriate. ... Think twice about a humorous gift. ... Consider a charitable donation. ... Presentation is important.More items...•

Should gift giving be considered a form of bribery?

People see no harm in gift giving and it is generally viewed as something positive. It is associated with kindness and selflessness. Giving or receiving a gift is legal. Bribery, on the other hand, is almost universally condemned, and its practice is considered undesirable, harmful and destructive.

Is it OK to accept gifts from clients?

Answer. This rule prohibits soliciting substantial gifts or, in most circumstances, drafting an instrument giving a substantial gift to the lawyer or lawyer's family, but does not prohibit a lawyer from accepting a gift.

What is considered a gift of nominal value?

In short, the OIG now allows gifts of “nominal value,” no more than $15 per item or $75 in aggregate per patient on an annual basis, which marks an increase from the limits set in 2000 of $10 per item or $50 in aggregate per patient annually.

Is it appropriate to give a gift to your boss?

Business etiquette rules do not require you, or any worker, to give a gift to your boss for any occasion. In fact, giving a gift when it's not necessary can appear as if you are trying to buy your way into your boss's good graces.

What's the reasonable expense amount of giving or receiving gifts USD?

The cumulative value of all gifts an employee of the Company may receive from any one gift giver cannot exceed Rs. 15,000 ($250 or equivalent in local currency) in a financial year ,unless disclosed in the Gift Register and approved by the Departmental Head, after appropriate consultation with the Ethics Counsellor.

Why is giving gifts important?

The act of giving gifts assists in establishing or enhancing all types of relationships. This is true for the corporate world and government agencies. It’s also a cost-effective way of recognizing talents and achievements.

How much can you deduct for business gifts?

The Internal Revenue Service empowers businesses to deduct business gifts costing a maximum amount of $75. This enables the companies to put a decent limit on the money spent on gifts. As part of the tax rules, gifts costing more than $25 are considered as taxable income when offered to employees. In general, food items, food coupons, liquor and wine, and office related items such as pen sets or other practical gifts are all safe bets. Even tickets to sporting and entertainment events make great gifts.

Is accepting bribes a criminal offence?

Gifts, “Freebies,” & Related Questions: Legality and appropriateness of the acceptance of gifts by public officials. Accepting bribes is a punishable offence. In a corporate or government organization, it can be difficult to decipher between a gift and a bribe.

Should you give a gift during a contract renewal?

Giving Gifts. Gifts should never be given during the process of bidding, in the waiting period for renewal of a contract, or at a time when negotiations are going on. Such timing results in the perception of a bribe. Gift should not be given to just one person, but rather to the whole team or division.

Can you give a gift to just one person?

Gift should not be given to just one person, but rather to the whole team or division. Otherwise, other members of the team often feel that there is something more going on. Gifts can be given to employees, co-workers, clients, and prospective clients.

Is accepting gifts a bribe?

In situations where certain actions are right and others are absolutely wrong, there are shady areas where it is difficult to reach an outright decision. Accepting and giving gifts is such an area which constantly puts corporate professionals and government officials in a dilemma about whether the gift being given will be perceived as a bribe ...

What is the premise of giving gifts?

The premise of giving gifts is an ancient way to express gratitude, appreciation and love. Giving in itself is fairly innocuous and it is based upon the philosophy of reciprocity which is commonly articulated by phrases such as “what goes around comes around" or “what you sow, you will reap”. While gifts are often given as a gesture ...

Is accepting gifts a violation of business ethics?

In some situations, however, accepting them may be a serious breach of business and professional ethics, and perhaps even a violation of the law. Policies and practices on handling gifts and invitations to special events vary from company to company.

Is it illegal to accept gifts?

Clearly, it is unethical and in some instances illegal to accept gifts or invitations to any event where the intent is to buy favour. Recognizing that business is often conducted at social events and paying your own way to attend an event is not always feasible, some individuals do accept invitations to social events when ...

Is bribery a shameful act?

Bribery is increasingly viewed with intolerance throughout the world. In fact, in virtually every country in the world bribery is a shameful act. Those who accept bribes do not speak publicly of their bribes anywhere. Gifts, even those of nominal value, can create the perception of undue influence.

When were the rules for giving gifts established?

For example, the S.E.C. has clearly established regulations around what financial services professionals can accept. These rules were established back in 1940, but have been clarified and updated since that time.

When were gifting laws established?

These rules were established back in 1940 , but have been clarified and updated since that time. Other laws relate to the gifting of government employees. Certain items like food, plaques, and other gifts are excluded. The guidelines around gifting in the pharmaceutical and medical industries have evolved over time.

What are shareable items?

Shareable items: like cookies, cupcakes, or even a team lunch. That way, an entire department can enjoy your gift and you can also build brand awareness among multiple people and not just your primary contact. Charitable gifts: especially if they tie to a cause that the recipient’s company is passionate about.

Do drug companies have to report gifts?

Drug and device manufacturers are now required under the Sunshine Act to submit data annually to the government, reporting any money paid to physicians or the monetary value of gifts. If you’re a recipient, make sure you thoroughly understand both the law and company policies around accepting and reporting gifts.

Does Coca Cola have a corporate ethics policy?

Some companies like Coca-Cola publish their corporate codes of ethics online, but no central database of guidelines currently exists. If a client or prospect rejects your gift, you have an opportunity to clarify the company’s limits. Apologize and reassure the recipient you’ll keep policies in mind for the future.

Why is it important to have a gift policy?

Because there’s ongoing potential for gifts to be exchanged between employees and customers, vendors, suppliers, job applicants and other business stakeholders, it’s smart to have a clear company gift policy in place to prevent problems down the road.

What is a company gift policy?

A company gift policy should: State from whom company employees may accept a gift. Outline the circumstances under which an employee may accept a gift. Offer guidance about what is and isn’t appropriate to accept as a present. Define what is allowed or prohibited.

Why is it important to have a code of ethics?

Upholding a code of ethics will help set clear expectations for employees to practice and demonstrate equal treatment and non-discriminatory actions in the workplace.

Is it okay to give cash as a gift?

Giving cash as a gift is considered unacceptable – unless, of course, the company provides it in the form of an employee bonus. On the other hand, gift cards and gift certificates can be acceptable gift choices. The gift card for a major retailer wrapped imaginatively can be a big hit with coworkers.

Can you pressure someone to donate?

Never pressure someone to contribute, however, no matter how much you believe they can afford it. The same guideline applies when asking employees to donate to philanthropic causes. From time to time there may be good reason to invite people to make a voluntary contribution to a charity.

Can employees give gifts to supervisors?

But employees shouldn’t give gifts to supervisors. This rule protects employees from feeling pressure to purchase gifts for the people who sign their paychecks. Following this policy helps avoid any appearance of a quid pro quo, or the expectation of special treatment.

What is an unacceptable gift policy?

Unacceptable gifts: The policy needs to set out what is not acceptable and what employees may not accept. The most common mechanism is to specify a monetary value above which gifts may not be accepted.

What is considered a gift?

A gift can be considered any tangible article, benefit, favour, gratification, product discount not in the normal cause of business, commission, occasion, entertainment or function (such as sporting event tickets) that is given to the employee to keep, use or attend at no cost.

What is a gift policy?

The gift policy should clarify the criteria regarding the giving and receiving of gifts and clearly distinguish between behaviour that is considered normal and acceptable in relation to gifts, and what is regarded as unethical, criminal or contrary to good corporate governance and best business practice.

Can a gift be accepted?

a gift may not be accepted at all under the following circumstances: when it is given in order to obtain a business favour; when it is accompanied by any direct or indirect suggestion, hint, “understanding” or implication that some expected or desirable outcome is required in return;

Should gifts be uniform?

Thus, ideally, gifts to clients or other stakeholders should be uniform and branded. It is also useful to issue all client gifts at a specific time of year (such as at year-end) so that there is no inference of either favouring specific clients or attempting to influence corporate relations.

Is giving and receiving gifts ethical?

The giving and receiving of gifts is especially prevalent at this time of the year. This not only highlights the question of what is and is not acceptable and ethical, but also increases the potential for abuse. In response to the possible negative aspects of gifts, many organisations adopt a no gift policy.

What are the guidelines for gifts and hospitality?

These elements need to be included in any policy on gifts and hospitality. 1. Scope of application. 2. Defining a gift or invitation. 3. Acceptance and refusal conditions. Conclusion: having robust guidelines and rules is only half the battle.

What is the second step in a gift and hospitality policy?

But the work does not stop there: the second step is to ensure that employees know the rules and are able to apply them.

What are the elements of a gift policy?

An effective policy on gifts and hospitality needs three main elements: scope of application, defining gifts and invitations as well as when they can and cannot be accepted. 1. Scope of application.

How does a gift affect judgment?

A gift or invitation can affect judgment. When public officials are involved this needs to be given special consideration. Many public authorities have internal rules on this topic. Not only in relation to public officials themselves, but also their family members, affiliated foundations and organisations.

What is provision of premises?

Provision of premises. Gifts that an employee of the company gives to a relative or acquaintance. Hiring a relative for a job or internship. Study grants for children and relatives. The policy should precisely state what types of gifts and entertainment are covered.

What are legitimate occasions for gifts?

Occasions such as anniversaries, birthdays, project completions or social events such as Christmas or New Year can be legitimate occasions for gifts and invitations. However, if there is no obvious reason for the gift, the giver or recipient needs to be able to explain the reason for it.

What is considered a gift?

Gifts generally refer to items of value given to or by employees. They can be consumer goods, branded items, discounts or cash. Common examples are a bottle of wine or a box of chocolates. Hospitality includes meals, beverages, and travel and accommodation expenses.

What happens if you throw a business card in a bowl?

If you throw your business card into a bowl or box in the hopes of winning a PDA, a camera, or even a $100 travelers check, it doesn't seem that this is any different than taking a chance in a lottery for which you pay a price. You have given the company something of value for your chance to win the prize.

Can employees take things above a certain dollar?

Many companies have stated policies that limit the value of things an employee may accept. In most cases employees can't take an item above a certain dollar figure, but are allowed to accept such amenities as a few drinks or a meal. But even these limits don't cover the whole landscape.

Is it better to err on the side of silliness or take the chance of setting the stage for

At the same time, it's easy for small favors to grow into big ones and raise the issue of corruption. So it's probably better to err on the side of silliness, rather than take the chance of setting the stage for a scandal.

When determining whether to accept a gift from clients, what do counselors take into account?

When determining whether to accept a gift from clients, counselors take into account the therapeutic relationship, the monetary value of the gift, the client’s motivation for giving the gift, and the counselor’s motivation for wanting to accept or decline the gift. Rather than having a blanket rule about accepting gifts, ...

What happens if a client provides a gift at the termination stage of services?

If a client provides a gift at the termination stage of services, then the risk of exploitation may be lower. Because the client has already received services, it is less likely that the client is providing the gift to sway how the social worker provides services or other benefits.

What is a $20 gift?

If the client is wealthy, then a gift worth $20 may be perceived by the client as a small token of appreciation. Some agencies put specific values on what types of gifts may be accepted. Some agencies prohibit gifts of any value. Some agencies allow gifts to the agency (as a whole), but not to individual social workers.

Why does Cleo offer you a gift?

If Cleo offers you a gift because she has a low level of trust in the relationship and wants to ensure your support, then accepting the gift may be tantamount to exploiting her vulnerability. If Cleo and you have an egalitarian relationship, then the risks of exploitation are lower.

Is accepting gifts an either or issue?

The question of accepting gifts is not simply an either/or issue. When and how are also important considerations. To pre-empt problems, it would be helpful for clients to know the social worker’s or agency’s policy on gift-giving from the outset of the helping process.

Can accepting a gift hurt you?

Rejecting the gift could also have a negative impact on her progress in counseling. To accept the gift would do more good than harm—particularly if there are no risks or perceptions of exploitation, inappropriate boundaries, or biases in your professional decision making.

Can social workers accept gifts?

Some agencies allow gifts to the agency (as a whole), but not to individual social workers. Remember that even if an agency has a policy prohibiting acceptance of gifts, it may be ethical to accept them. You may need to advocate with the agency to change the policy, or to grant exceptions on a case-by-case basis.