It means anything of value that you give or accept, either directly or in kind
Any gift or hospitality you accept from someone that you would be able to give them as a proper and appropriate business expense
The recording of gifts and hospitality offered or received is an important aspect of Sacro’s procedures for preventing bribery and corruption within its business
Gifts
Business gifts are goods, services or any item of value provided to, or received from, colleagues or third parties
They are often given as mark of appreciation, to build business relationships or promote the givers company
Hospitality
It includes food, drink, accommodation, flights or other means of transports, or entertaining (including receptions, tickets to entertainment, social or sporting events) given to or offered by colleagues to initiate or develop business relationships with other colleagues or third parties
Gifts & Hospitality Principles
1) Giving or receiving gifts and hospitality is not prohibiting as long as they are reasonable and justified
2) All gifts or hospitality should be proportionate and appropriate
3) Gifts & Hospitality should not be unnecessarily lavish
4) Colleagues are expected to be open and transparent about giving or receiving gifts & hospitality
5) You should realistically estimate the cost or alternatively ask the giver of the gift if possible
6) don’t offer if customers or suppliers or reluctant to accept gift or hospitality
7) gifts & hospitality should not be in expectations of future business advantages
8) all gifts should be authorized and recorded in accordance with the authorization levels
9) gifts & hospitality, under no circumstances, be intended to influence the other party’s behavior or to offer preferential treatment
10) medium or large gifts i.e. say above Rs 1000 should be recorded in gifts & hospitality register
11) cash or cash equivalents (such as gift certificates or vouchers) of any value should not be accepted
12) Gifts & hospitality should not form part of a regular pattern of giving from the same person
Ethical gifts
Accepting gifts may be justifiable when they promote the principles of beneficence (doing good, particularly for client) and non-maleficence (avoiding harm, particularly to the client)
Never appropriate gifts
Following gifts should never be given or accepted
Gifts of cash, gold or other precious metals, gems or stones are not acceptable
Gifts prohibited under applicable laws are that given in the nature of a bribe, payoff, kickback or facilitation payment
Gifts creates conflict of interest
Gifts cause a conflict of interests when they threaten to corrupt an employees judgement on business matters related to the interests of the person or organization providing the gift
Majority times gifts are given with that intention only
Substantial gifts
It means a gift, donation, or other consideration sufficient to influence a person to act in a specific manner
Unwanted gifts
Number of ways you can dispense of your unwanted gifts may be
Re – Gifting Charity shops Donate to a refuge Donate cloths and blankets to homeless Take books to library, school or charity Recycle, recycle, recycle
Gift giving in business ethics
A gift to a loyal customer after years of business deals is a better tactic
So it is a charitable contribution in the name of the client or employee
Timing can clarify the distinction between gift and bribe
Value is also a factor, but even expensive gifts can positively influence the recipient
Remember that gift giving is strictly voluntary
Gifts and hospitality policy
You should not offer any gifts or hospitality to business contacts in your name or at your own expense
Any gift or offer of hospitality must be given in public, and sent to the business address, rather than the private address of the recipient
Guidelines on gifts & hospitality
1) scope of application
2) defining a gift or invitation
3) acceptance and refusal conditions
4) defining what constitutes acceptable and unacceptable
5) reducing the active and passive risk of corruption
6) protecting the company and it’s employees from the risk of criminal prosecution
7) providing a clear indication to employees, business partners and other external parties of the companies values regarding the prevention of corruption
Timing plays an important role in gifts & hospitality
Following time periods can be problematic for gifts and hospitality
1) during ongoing tender
2) before signing contract
3) before voting
4) before granting permits or authorizations 5) before issuing licenses
6) before changing laws or regulations
Gift Register is to be submitted to the audit committee annually for review and monitored by the executive committee
