Why the holiday season is a good time to revisit gifts and entertainment in the workplace
A vendor you work with sends you a holiday gift basket. Your team has a long relationship with the company, and the basket includes a friendly note thanking you for your business.
Would you accept it?
Now imagine the same vendor sends you a pair of tickets to a sold out game. Or offers to take you and a guest to dinner at an expensive restaurant. Or sends the gift just as your organization is deciding whether to renew its contract.
Does your answer change?
During the holiday season, gifts and invitations are often intended as a simple expression of appreciation. But even a well intended gesture can raise questions when it involves someone your organization does business with.
That is why gifts and entertainment policies matter. They help employees recognize when a gesture is appropriate, when it may create a concern and when they should ask for guidance.
The challenge is not always obvious
Most employees understand that accepting cash from a vendor in exchange for awarding a contract is wrong. The situations they encounter in real life, however, are often less clear.
A supplier may send a box of chocolates to the office. A customer may invite an employee to a holiday dinner. A business partner may offer tickets to an event.
Whether an employee can accept may depend on several factors, including:
- The value of the gift or invitation
- The purpose and timing of the offer
- The employee’s role in a business decision
- Whether the gesture is occasional or part of a pattern
- The organization’s policies and approval requirements
- Whether the offer involves a government official or another situation subject to additional rules
There is rarely a single question that answers everything. A gift that seems modest on its own may be more concerning if it comes from a vendor seeking favorable treatment or if similar gifts are offered repeatedly.
Consider the timing and the relationship
Timing can change how a gift is perceived.
For example, a shared holiday gift basket from a long standing supplier may be permitted under a company’s policy. The same basket could raise questions if it arrives while an employee is evaluating bids and the supplier is competing for the business.
Employees should also consider their relationship with the person making the offer. Are they in a position to influence a purchasing decision, contract renewal or other business outcome? Has the person making the offer suggested that they expect something in return?
Even when no one intends to influence a decision, the appearance of favoritism can undermine trust.
Ask a few questions before accepting
When an employee is unsure, a short pause can help them make a better decision. Encourage employees to ask:
- Does our policy allow it? Check any rules about value, frequency, reporting or approval.
- Why is it being offered? Consider whether it is a routine expression of appreciation or whether there may be an expectation attached.
- Could it influence a decision? Think about current or upcoming business decisions involving the person or organization.
- How would it look to others? Consider whether colleagues, customers or other stakeholders could view the gesture as inappropriate.
- Should I ask for guidance? A manager, compliance team or other designated resource can help clarify the right next step.
If an employee needs to decline, they can thank the person for the gesture and explain that company policy does not permit them to accept it. When appropriate, they can also ask their compliance team how to handle an item that has already been received.
Make your policy practical
A gifts and entertainment policy gives employees a foundation, but a policy alone may not prepare them for every situation.
Training helps employees apply that policy to the kinds of decisions they actually face. For the holiday season, that might mean discussing a vendor gift basket, a customer dinner, event tickets or a gift offered during contract negotiations.
These examples also give organizations an opportunity to reinforce where employees can find the policy, who can answer questions and when a gift or invitation needs to be disclosed or approved.
The goal is to help employees feel comfortable asking questions before they act. A quick conversation can protect the employee, the business relationship and the organization.
Help employees navigate gifts and entertainment decisions
The holiday season is a natural time to thank the people we work with. It is also a good time to remind employees that thoughtful business decisions include knowing when to pause and ask for guidance.
Ethiciti’s Gifts & Entertainment course can help support conversations about appropriate workplace gifts and entertainment and the decisions employees may encounter throughout the year.
Interested in learning more about the course? Contact Ethiciti to request a preview or a quote at sales@ethiciti.com.
