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Casebook Read Credits
Corporate Risk and Compliance: Theory and Practice
Section 5 . 5

Hypo: Should we allow the gift?

Kim Otte

Facts: You are the CCO of the company. One of your business leaders for an innovative joint venture is in Japan to meet with the CEO of your anticipated partner company. The leader arrives at the hotel and there is a large, perishable gift basket. Company policy (see policy below) prohibits any gift from business partners or potential business partners. The “why” is to avoid any internal or external appearance of conflict, to avoid certain persons inequitably receiving gifts rather than the team, and to avoid legal liability. In this case, there is no real legal risk under the fraud and anti-bribery laws. There is no way to re-distribute this to the team or other community non profit as is done with other perishable gifts. It would be untenable in the relationship, given Japanese culture, to return the gift.

How would you advise? 

 

Gifts from Third Parties Policy

Scope: Applies to all Employees in receipt of a gift from a Third Party.

Policy

  • In order to avoid a conflict of interest or the appearance of a conflict of interest, Employees must neither solicit nor accept gifts or prizes from Third Parties.
  • Personnel may request approval for an exception from the Compliance Committee; consideration of such requests will include whether a business imperative exists for acceptance of the gift or prize.
  • Gifts offered by professional associations, societies, or other non-profit groups may be accepted.
  • Gifts of nominal value may be accepted.

 

Policy Notes

  • Offers of gifts and prizes from Third Parties must be politely but firmly refused.
  • If Personnel receive unsolicited (non-perishable) gifts or prizes from Third Parties they must be returned with a letter politely declining the gift or prize and referring to company policy prohibiting acceptance of gifts or prizes.
  • Perishable items may be donated to a local non-profit organization. The Third Party should be notified that the gift was donated to a local non-profit organization and advised that no further gifts should be sent.
  • The Compliance Office is available to assist with questions regarding interactions with External Entities.

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