Gift-Giving and

Bribery

Gift-giving
It is merely an act of extending goodwill to an individual in an
effort to share something with them.
Giving gifts to customers, clients, and business partners in a
common practice in the business community.
It is normally observed during special occasions like Christmas,
New Year, and sometimes even during birthdays.

Businesses usually engage in gift-giving for

the following reasons:
To show appreciation for a favor received.
To effectively establish goodwill with business partners
To advertise; and
To compete effectively against competitors.

The following are the common forms of gift-giving:

Samples
Raffle coupons/certificates
Rebates/cash refunds
Padding
Premiums
Prizes
Patronage awards(rewards)
Tie-up promotions
Allowance
Free goods
Tips

Is Gift-Giving Ethical or
Unethical?
Business gifts of clients and business associates can raise
conflict of interest problems, and knowing where to draw the
line , between what is right and wrong , is not always easy .

Gift-giving in the Philippines and other

countries
Preparing for a business meeting requires a working knowledge of the information to be
discussed or presented, careful attention to all details on the printed material to be
distributed, and perhaps a gift. This gift is a social gesture that may be expected in some
countries, and could be considered a bribe in others. Knowing the gift guidelines for the
country you'll be visiting will help make your meeting a success.
Some multi-national companies and some governments have very strict policies
regarding their employees accepting gifts. To avoid creating a problem, it's imperative
you learn the policies for the companies you do business with.
Countries like Malaysia and Paraguay, concerned with corruption, frown upon any gift that
could be construed as a bribe. In Malaysia you wouldn't give a gift until you had established
a relationship with the person. In Singapore, government employees are not allowed to
accept gifts, and the United States limits the acceptable dollar value to $25.

 However, in some countries like Japan, Indonesia and the Philippines, exchanging
gifts is strongly rooted in tradition. Part of the tradition is the
gracious style used to present and receive them. It's important to plan time and focus
on the process.
It's very important in Asia and the Middle East to only use your right hand, or both
hands, to offer or accept a gift. In Japan and Hong Kong, use both
hands.
In Singapore a recipient may "graciously refuse three times" before accepting your
gift. But in Chile, gifts are accepted and opened immediately. And
in Indonesia, small gifts are given on a frequent basis.
Always be cognizant of religious laws when selecting gifts. For instance, pork is
prohibited in the Jewish and Muslim religions, so you wouldn't select
a gift made from pigskin. As in India, don't offer a gift made from cowhide. Another
prohibition for the Muslim faith is alcohol.

 A standard to keep in mind for any gift you select is quality. Choose quality items that are not
ostentatious. If you have gifts with your company logo, it's better if the logo is discreet. And
don't give company logo gifts in Greece, Spain and Portugal.
Hosting a meal at a nice restaurant is always a good business practice. A fine dinner is a
wonderful way to give a "gift to your hosts", to show your guests you appreciate the
business relationship you have with them, and an opportunity to build rapport. People in
Brazil, England, Panama, and Peru enjoy being invited guests for a meal, and the Greeks
look forward to an evening filled with dining. In China, plan a banquet, especially if you are
being honored with one.

Factors in determining the

morality of gift-giving
1. Value of the gift
2. Purpose of the gift
3. Circumstances under which the gift was given or received
4. Position between or relationship of the giver and receiver
5. Acceptable business practice in the industry
6. Company policy
7. Laws and regulations

Value of the gift

ce sie and
e0 V*P seats
Nominal Value these are offered as the gesture of common
courtesy.
Example: inexpensive bottle of wine, free passes to the
movies, gift certificates, etc.
Substantial Value of considerable importance, size and
worth
Example: house and lot, car, vacation tour, jewelry etc.

Value of the gift (cont.)

The term nominal or substantial in this point of view is
relative. It varies on beliefs and culture of a particular group
of people and society.
In majority point of view, a valuable gift is definitely
unethical. It is for this main reason that the goodwill
motives of the giver are open to doubt.

Purpose of the gift

As long as the gift is not intended or received as a bribe and
remains nominal, there doesnt appear to be any serious
problem.
Difference between Gift and Bribe:
Gift something of value given without the expectation of
anything in return. Generally done in the open and not in secret.
Bribe is given in the hope of influence or benefit, usually
done in secret and often insisted upon.

the gift was given or

received
Reasons:
Attached to an occasion (holidays, special events, etc.)
Unattached to any occasion
Manner the gift was given:
Open
Secret

relationship of the giver and

receiver
In superior and subordinate relationship, for instance,
the donors or recipients have to make it clear that
they dont intend to allow the gift to influence their
actions and decisions.

Acceptable business practice

in the industry
Monetary gifts and tips are usually practiced in
numerous service industries. When gratuities are an
integral part of customary business practice, they are
far less prone to pose moral questions.

Company policy
If firms explicitly forbid practice of gift giving and
receiving gifts to its customers, vendors or suppliers,
associates, or corporate directors, then gift-giving
would normally be wrong.

Laws and regulations

Certain federal, state or local government institutions may
impose laws that forbid accepting gifts from firms with which
they do business. When these gift transactions violate the law,
they are clearly unacceptable.

Still, the ultimate moral judgment hinges on whether an

objective partly could reasonably suspect that the gift might
leaf the recipient to sacrifice the interest of the firm for
his/her own personal gain.

Bribery
A practice of giving remuneration for performance of an act
that is inconsistent with the work contract.
It is intended to induce people inside the workplace.
It is identified to be a form of corruption and is generally
immoral and for most is illegal.

Examples:
A motorist offers a certain amount of money to a police officer
in order not to be issued ticket for overspeeding.
A narcotics smuggler bribes a judge to lessen criminal
penalties.

Why bribery is unethical?

It is generally used as an instrument to gain personal advantage.
It corrupts the concept of justice and equality.
It produces cynicism and a general distrust of institutions.
It destroys people's trust in the integrity of professional
services, of government and the courts, of law enforcement,
religion.
It treats people as a commodities.

Former Army officer in bribery

case convicted
A former Philippine Army officer has been found guilty of accepting bribe money in exchange
for enlisting an applicant into military service in 2008.
In a 43-page decision, the Sandiganbayan Third Division found guilty former Army Major
General Jose Barbieto along with his co-accused aide, Staff Sergeant Roseller Echipare, for direct
bribery.
With this, the tribunal sentenced each of the accused to imprisonment of three years, six months
and five days and fined P60,000, equivalent to three times the amount received from complainant
Staff Sergeant Allan Joel Timbal.
On June 17, 2010, Barbieto and Echipare demanded P20,000 from Timbal in exchange for a
favorable action on the application for enlistment of his brother-in-law Ronald Raut.
The offenses allegedly took place when Barbieto was still commanding general of the 4th
Infantry Division assigned in Camp Edilberto Evangelista in Cagayan de Oro City.

The recruitment of candidate soldiers applicants to the Philippine Army is not a transaction
involving monetary consideration within the purview of Section 3(b) of Republic Act No. 3019
(The Anti-Graft and Corrupt Practices Act). This pronouncement however does not completely
absolve them from criminal liablity (as) the allegations make out a case of direct bribery,
read the decision penned by Associate Justice Alex Quiroz concurred to by Presiding Justice
Amparo Cabotaje-Tang and Associate Justice Samuel Martires.
On the other hand, the graft court acquitted Barbieto and Echipare of two counts of graft and
one count of malversation of public funds.
The graft case involved a similar scheme this time concerning the application for enlistment of
one Private Butch Ramos who was reportedly made to shell out P25,000.
In the malversation case, prosecutors accused Barbieto of pocketing R3 million which was part
of the fund allocation for the Balik-Baril program of the government and the Armed Forces of
the Philippines to encourage re-integration of armed insurgents.

END