Are business gifts bribes?
Within recent years, corporate gifts have been
under intense scrutiny – particularly corporate gifts provided to companies
and individuals that appeared less then ethical – multi-million dollar
“gifts” made to executives from within companies that were going through
financial struggles. There is a high likelihood that these gifts are
unethical, and are not so much gifts as bribes for business that may not be
best for shareholders.
This has lead to the questioning of corporate gifts
themselves – the style of gifts given by sales staff to various prospects in
other companies in order to help win their business. These gifts (ranging
from $0-$500) have been a constant sales tool for years and years, but
recently it has been questioned how ethical these gifts truly are. Are they
gifts? Or are they simply bribes masquerading as gifts?
A Little of Both
In many ways, corporate gifts are a little of both.
In their truest form they are still gifts. Though they may have similarities
to the type of unethical gifts that had been given to corporate executives,
most corporate gifts are nothing more than branded items that are designed
to help woo companies into choosing to go with their product.
The gift is not designed to make someone get the
product or service. Rather it is to help create a positive impression of the
brand name, and hope that that impression helps win over the potential
client. It is similar to buying a gift for a romantic interest with the
hopes that they will like you (the brand name) more and ultimately want to
continue or further the relationship.
However, there are some ways that it is still a
"bribe," but these are within the nature of gift giving. When someone gives
a gift, it is human nature to want to return the favor. By providing a
prospect with a potential gift, they will naturally feel a little bit of
guilt for accepting the gift without returning the favor – the favor, in
this case, being their business. In addition, there is an expectation of –
if not winning the business – furthering your chances of closing the sale
with the gift. Thus the similarities between bribes and corporate gifts run
deep.
Rest assured, however, that a business gift is not
a bribe because it doesn’t force the potential client to accept it. Rather,
it simply helps improve your chances on a more inherent level by improving
your brand name. The fact that the individual receiving the gift feels as
though they should give you their business is a nice bonus, but that is the
nature of gift giving. Surprise a personal acquaintance with an expensive
present on their birthday and chances are they will feel the need to buy you
a nice gift on yours.
Provided the gift is given without an expectation
for returning the favor, a corporate gift is still an excellent and
completely ethical sales tool for your staff. Only if the gift is given on
the condition of winning the business does the gift cause any ethical
dilemmas.