Objective
To lay the guidelines for receiving of gifts, service or entertainment with business partners or customers for the purpose of maintaining or developing the business relationship. The employees are supposed to abide by these guidelines while accepting gifts to avoid any conflict of interest with business.
Acceptable Gifts
- To develop healthy relationships with partners, the company allows acceptance of only gifts, services and entertainment which are of modest value (Value below Rs.1000/-) or within the framework of the commercial relations without creating inappropriate expectation or feeling of obligation towards the opposite party.
- Gifts accepted on festive occasions like Diwali, New year, Birthday, Anniversary or promotional material, are allowed, provided its value is below Rs.1000/-. For e.g. printed calendar, sweets, diary, pen (non branded) etc. shall be allowed.
Non-Acceptable Gifts
- Any Gifts, Services or entertainment which is received that is of high value (More than Rs.1000/-) is not acceptable.
- No employee shall offer or accept any gifts in the form of money(cash), loans, gadget, home furnishings, precious metals, tours, or kickbacks in whatsoever value it may have which may lead to influencing business.
- Gifts that are prohibited under the law of the country.
- Those gifts which are not acceptable as per our company or Receiver Company’s policy on gifts.
Procedure to be followed for receiving gifts
- One must report immediately to Manager, HR Head and respective HOD, any occasion or offer of a bribe in form of lump sum money or commission, kickback or illegal payment received or if any information of other employee’s non compliance to this policy is known which may compromise the business ethics in any form.
- Any valuable gift/service/entertainment option offered by business partner/others should be politely refused quoting the company’s gift Policy.
- As an exceptional case, keeping in mind the business relationship if the valuable gift is accepted then the same has to be reported to HR/HOD in prescribed format , awaiting further for instructions to handle the same.
Non Compliance
- Disciplinary action shall be initiated on reporting of any non compliance, if brought to the notice.
- The severity of the disciplinary action shall depend upon the level of misappropriation leading to warning, show cause, termination or legal action in extreme case.
Frequently Answered Questions
Q1. Why can’t we accept gifts from vendors which will help in building business relations?
Ans. There is a saying that nothing comes free. Vendors provide gifts with the expectation of getting favoured while making business decisions. This may create conflict of interest and may place you in a position where you may be seen to be making commercial decisions based on the gift received from him. Hence valuable gifts more than Rs.1000/- are to be
avoided.
Q2. What gift items are acceptable or non acceptable as per policy?
Ans. Any form of gift whose value is more than Rs.1000/- is not acceptable.
Q3. What if vendor sends gift to office or home without being informed ?
Ans. Any valuable gift received should be informed immediately to HR and HOD. Based on the decision taken by HR, the gift would either be returned to the vendor stating the ‘No Gift’ Policy or if returning gift would be seen inappropriate, the same would be deposited in
the central gifts bank with HR.
Q4. Should the acceptance of low valuable gifts (Value less than Rs.1000) also be recorded?
Ans. Yes, the information should be shared with immediate reporting manager/HOD who may decide to return the gift if it’s acceptance may in any way influence business decisions with the vendor.
Q5. How should I deal with the non acceptance/ rejection of gift received from a business partner, as this may hamper my relationship with him?
Ans. This may seem to be rude only if not handled properly. You should graciously refuse with an explanation of our policy on accepting gifts from vendors. If returning gift would be seen inappropriate, the same would be instructed by HOD to be deposited in the central gifts bank with HR.
Q6.A vendor may sometimes want to invite the team members for discussing business proposal over cocktail dinner, send tickets to some entertainment event or invite to a sight-seeing tour. Interacting in unofficial settings may help in relationship building and improvement in business. May I accept his offer?
Ans. Although it is encouraged to build relationships with the vendors, invitation to dine, event or tour should be accepted only if the cost associated with the event does not exceed Rs. 1000/-, one should be continually mindful of avoiding even slightest appearance of a conflict of interest. Any business related discussion with vendor should be done in more appropriate setting like vendor’s shop or office premises (wherever available), if possible.
Q7. Some vendors distribute small promotional material like dairies, calendars, pens etc. with their logos displayed. Can we accept gifts?
Ans. Yes, you may accept provided it is of value less than Rs.1000/-. Accept it only if the items are reasonable in numbers and do not give an impression that we are promoting their brand i.e. advertising for them by displaying them in our workplace.