Bribery vs. Gift Giving in the Workplace

The topic that I’ve chosen for this ethics assignment is the concept of giving lavish gifts in exchange for business and sales. I feel that this concept is relative to the modern selling environment because it’s becoming more and more common. Giving lavish gifts in exchange for business and sales is a challenge for a multitude of reasons. Giving gifts and bribery has become a line that is increasingly distorted. (Smith, 2014) When giving a gift to anyone even a business associate or client was meant to be a way to express gratitude, appreciation, and love.

(Smith, 2014) Now, a gift of a certain nature, one that is too expensive, or doesn’t follow “proper” etiquette, can cause trouble for everyone. These lavish gifts can be a challenge due to it seeming like a bribe since that line between giving and bribery is so distorted.

There are so many factors to consider when even thinking of giving any kind of gift in the workplace rather it be lavish or not.

There’s certain etiquette to follow in order for this to not get out of control or to avoid it becoming an unethical issue. For starters, everyone should avoid spending too much money on gifts. (Pilon, 2015) Considering the price for gifts will help in the long run so there won’t be any miscommunication. This is the biggest hill to get over when determining if the gift is lavish or not and whether the gift is lavish can be that distorted line between giving a gift out of the goodness of your heart and bribery.

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The concept of giving these lavish gifts can affect everyone involved and even some that aren’t directly involved. The salesperson can be affected quite negatively in this concept. The salesperson can be seen as not following company policy and thus could have adverse consequences..

Depending on the company the ethical dilemma could end in the salesperson getting fired, taken off that particular lead, changing of territory, etc. Of course, the role of the salesperson and their role in the company varies but for them being a part of ethical dilemma the consequences are honestly endless. This concept of ethical dilemma can also affect the sales manager. It’s the duty of the sales manager to ensure that the policies for gift giving are clear.  The policies need to be consistent and clearly lined to all employees and salespeople. If the salesperson is caught up in an ethical dilemma, then the sales manager is also at fault for not having it clearly explained. They are expected to encourage their employees to consider ethical implications before giving or receiving gifts of any kind.

Last and certainly not least, being involved in an ethical dilemma can affect the firm as a whole. For the firm, it can tarnish their organization’s name. The company could be seen as giving bribes for business and although it could bring more business and sales it could also cost them more money since other businesses would more than likely expect lavish gifts as well. The firm could have a negative outlook in the community causing people to not want to do business with them or like stated above, they could gain business but at a cost.

There is indeed an appropriate manner for salespeople, sales managers, and the selling firms to handle this type of ethical dilemma. There’s also ways to avoid it altogether. The firm can ensure that there is some sort of policy or clause about gift giving in exchange for business. The sales manager can ensure that they are letting their salespeople know the ins and outs of these policies so there won’t be any question of something like this happening. Or at the very least, limiting it drastically. The salespeople can always pay attention to those policies and ask questions when needed. Asking questions before giving or receiving a gift and following the policy will decrease the chance of any ethical dilemma and not just this one.

Now if by chance, the dilemma happens then there are ways to handle it from all perspectives. The salesperson should immediately admit to their wrongdoing before more damage is done. From there, their consequence would vary pending the sales manager’s thinking. The sales manager then needs to weigh out the options and see how much damage was done and how widespread the issue is. Once the sales manager has all the facts they can go on to make a rational decision in the matter. As for the firm itself, I don’t think they would have to get too involved unless the sales manager can’t handle it or it just gets way too out of control.

An example of this ethical dilemma in action is actually one I saw up close in regards to someone close in my family. This family friend worked at the Secretary of State and had been receiving gifts and special discounted services in exchange for information in the state database. The family friend would be considered the salesperson. So, the salesperson knew that she was doing business in an unethical way but continued to do it anyways. She eventually got caught when other people or let’s say “businesses” wanted the same treatment. One of the other co-workers got wind of the salesperson’s unethical actions and reported it to the manager. In this situation, the salesperson was immediately fired. No ifs, ands, or buts about it.

In my own opinion, I feel the decision to terminate the salesperson came out far too quickly. Where was the investigation? It was hearsay. Where were the facts? Eventually the salesperson did admit to what they did but it was long after being terminated. Dealing with ethical/unethical challenges can be difficult but they shouldn’t be rushed to judgement whatsoever. I think the salesperson should have indeed been suspended while an investigation took place. In this kind of situation, it isn’t like time was of the essence and there would have been enough time to go through any and all facts regarding the hearsay stated by said co-worker. Once the investigation ended then I think the sales manager should have come to a decision by then. Termination would be appropriate but just after the facts have been all laid out.

Overall, ethical challenges can be quite difficult and knowing how to handle them from any perspective can also be a challenge. In today’s selling environment I feel as though there needs to be clear guidelines, open lines of communication, and trust throughout. Without those, it’s more likely that ethical dilemmas will arise. Giving lavish gifts in exchange for business or sales is something that happens all the time but often times it can be looked at differently depending on the gift, the person, the company, etc. I don’t think there are any cultural implications when it comes to gift giving unless of course it was possibly pertaining to a specific holiday but on average it’d be a normal day. There is an abundance of ways to handle ethical dilemmas and they should be thought out and done in a rational way. The necessary steps can be taken to limit ethical dilemmas in the workplace if everyone works together!

References

1. Irwin, Judith. “How Corporate Gift-Giving Can Be Ethical.” How to Cultivate a Whistleblowing Culture | Ethical Corporation, 2012, www.ethicalcorp.com/business-strategy/how-corporate-gift-giving-can-be-ethical.
2. Pilon, Annie. “Business Gift Giving Etiquette and Mistakes to Avoid.” Small Business Trends, 26 Oct. 2015, smallbiztrends.com/2014/10/business-gift-giving-etiquette.html.
3.  Smith, Karl. “The Ethical Dilemma in Business Gifts: Giving or Bribery?” LinkedIn, 2014, www.linkedin.com/pulse/20140716125123-14373257-the-ethical-dilemma-in-business-gifts-giving-or-bribery.