Gifts and Hospitality

The provision of some forms of gifts and hospitality can be very important to promote goodwill and healthy business practices. A meal out with a supplier can help build a relationship; a pen with your firm’s name on it can remind a customer of you when they need a quote. In some circumstances, it might even be customary and expected, particularly in the context of SMEs where personal relationships play an important role. However, you need to be careful and avoid situations that might lead to ethical risks, where giving or accepting gifts and entertainment might compromise, or appear to compromise, your objectivity or influence your decisions. If this happens, your commercial relationships may be subject to bias and your ethical reputation will be at risk.

IBE Guidance
  • Encourage your team members to give and accept only gifts or entertainment of modest and proportionate value, and that can be reciprocated
  • Keep a register of gifts or entertainment offered and received when they exceed a certain value, and avoid giving or receiving gifts in cash or cash equivalent (such as a bottle of wine, vouchers or gift cards)
  • If your organisation interacts with Government, make sure you and your team members understand the laws and regulations that apply. These might be stricter than the ones that apply to other parties. Even simple offers (such as a meal) could be against the law
  • Avoid giving or receiving any gifts or entertainment that coincide with purchasing or sales decisions, as it could give the impression that those decisions have been improperly influenced.
  • The IBE Say No Toolkit includes further guidance on potential difficult situations when giving or receiving gifts or hospitality.
Subject Matter Expert Resources