Giving Gifts in Business | Corporate Gifting

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Giving Gifts in Business | Corporate Gifting

🔥 Imagine that you have been doing business with a supplier for the past year. Your partnership has yielded profitable results – for both parties. A representative of your supplier comes to your office with a small bouquet and a gift to congratulate and praise you for this achievement. You are happy with the appreciation that your supplier expressed. But on the other hand, you are pondering over various thoughts – Should you accept the gift? Is it perhaps too expensive? Will your manager or organization approve of you accepting the gift? How will your supplier feel if you refuse the gift?
You have encountered a situation called "Corporate Gifting".

What is Corporate Gifting? Definition

Corporate gifting refers to the practice of giving employees, investors, existing clients or prospects gifts of various kinds to show them that the organization is grateful for them. These gifts could be either monetary or non-monetary, like flowers, whine, a box of sweets, a gadget. The gifts act as a token of appreciation for the time and efforts an individual has put in, which has in turn benefited the gifting (giving) organization.
Gifting typically strengthens the relationship and positive associations between the giver and the receiver. However, corporate gifting may sometimes have negative connotations. Although corporate gifting is not entirely illegal, there can be restricting laws and company policies which employees have to bear in mind while giving or receiving gifts. For instance, some companies or public organizations do not allow their employees to accept gifts worth beyond a specific amount. Others demand any gift to be reported to ones' manager.

To whom are gifts given?

1. EXISTING CLIENTS AND INVESTORS: Helps to secure or increase long term connections and mutual trust with them.
2. PROSPECTIVE CLIENTS AND INVESTORS: Raises their interest in the organization – they may be more likely to invest in the firm or buy a product/service offered by the firm.
3. EMPLOYEES: Gifting them results in higher levels of employee retention, job satisfaction and commitment. It makes them feel valued and recognized, thus fostering a sense of belongingness.

Pros of Corporate Gifting. Advantages

The main benefits of corporate gifting are as follows:

1. BRAND REINFORCEMENT: Impress clients and also to represent the brand by adding the company logo to the gift.
2. HELPS BUILD LASTING RELATIONS: Whether one is a client or an employee, investing in gift-giving helps strengthen one's ties with the organization. It enables open and transparent communication with the organization and clients and employees will feel they are valued and appreciated.
3. MAKES ONE STAND OUT FROM COMPETITORS: Gift-giving on special occasions or while celebrating accomplishments makes the clients feel special and closely connected with the organization. It motivates them to continue their business and partnership with these organizations.

Cons of Corporate Gifting. Disadvantages

The main issues and pitfalls of corporate gifting are as follows:

1. PREVENT WRONG INTERPRETATIONS: Organizations should consider the gift's monetary value before gifting the same to their clients or employees. One must identify the fine line between a gift and a bribe. An overpriced gift does not indicate goodwill or appreciation; rather, it reflects the organization's efforts to gain clients' favors through bribery.
2. CONSIDER THE BUDGET: Although the organization may decide on low-priced gifts, the entire process of corporate gifting is indeed a costly affair. Also, there is a false misconception that the bigger and costlier the gift, the greater is the amount of appreciation reflected towards the organization. This is far from being true. Hence it is crucial to consider two factors: a) Organization's total expenditure for gifting people, and b) perceived value of the clients and employees being gifted.
   
3. COMPLEXITY OF THE PROCESS: Corporate gifting requires careful planning before its actual execution. For instance, the occasion, the type of gift, or the list of people receiving the gift. It is also crucial that the gifts cater to the receiver's interests. If the gift does not align with the receiver's interests, it may make them feel uncomfortable. A poor choice of gift may overshadow the organization's good intentions.

What are your thoughts and experiences about corporate gifting?

Sources:
Bregman, P. (2010, December 15). The real point of gift-giving. Harvard Business Review.
Harris, E. (n.d.). Pros and cons of professional gift giving (and gift ideas). Resultist Consulting.
Sendoso. (n.d.). What is corporate gifting and why is it important?

		Comments by date▼ Comments by rating Rating
		3 Anonymous
	Bribing versus Gifting in Business There is only a fine line between bribing and gifting in business. What is considered OK or not OK varies per culture, in time (now versus 25 years ago), per place (per country, per region of a country), per industry (trade, industry, government), per organization (company A versus company B) and per individual.

		1 Babacar Diouf Student (University), Senegal
	Bribing versus Gifting in Business We cannot accept corruption in any form, even if it does exist, it must be fought with all our might. Because it kills the business spirit. Some would say that in the business world anything goes but that is what should be avoided. We can't bring changes if we don't leave the way things were. Let's have a new spirit of patriotism, and fight against that plot. However, gifts are allowed in business but they must be regulated through a procedure or manual which defines what kind of gift may be accepted, who, when and how to receive it etc and to strengthen them by a law or regulation which penalizes any fraudulent practices.

		3 hassan Bek Libya
	Bribe versus Gift If the employee receives a "gift" before a contract is signed then that is treated as bribe. In companies where I worked, Total, Oxy, Conoco, it is strictly prohibited to receive any gifts. However a...

		1 Devendra Vyavaharkar Manager, India
	Organizational Policies on Corporate Gifting How does your organization tackle Corporate gifting? Could you share some of the policies present in your organization on this? Speaking of my workplace, we are allowed to accept gifts up to $20 wort...

		2 Maurice Hogarth Consultant, United Kingdom
	Corporate Gifting or Bribing The points have been made; distinguish between bribe (a prior activity), reward (a bribe after the event) or gift... An acknowledgement of their being a mutually beneficial working relationship. In m...

		2 Anonymous
	Risk of Substantial Gifts in Business A risk that not mentioned yet is that if a person accepts a substantial gift, he or she could be blackmailed by the gifting organization. And even by anybody who finds out about the gift. Viewed from...

		1 Maurice Hogarth Consultant, United Kingdom
	A Gift for Blackmail @Anonymous: An interesting point. The 'gift' would have to be quite substantial for the recipient to be prepared to deliver some of their organisation's product-service mix for it. An external giver...

		2 Racslette Analyst, India
	Personalized/Customized Business Gifts @Maurice Hogarth: Of course! I'd be happy to provide advice on different gift ideas for various occasions. Here are some suggestions: Personalized items: Consider customized gifts such as monogra...

		2 hassan Bek Libya
	How Gifts in Business are Looked at in Countries @Anonymous: Yes, companies have various kinds of stationary (pens, diary, calendar etc.) with company logos which they present as a gift. This has the psychological benefit that the logo is being seen...

		1 Maurice Hogarth Consultant, United Kingdom
	I'd be Unhappy @Racslette: If I were the manager of an organisation (be it little or large) I would consider all of your proposed "gifts" to be bribes and your point about knowing the interests etc., of the giftee, ...

		1 Maurice Hogarth Consultant, United Kingdom
	Gifting is Symbolic Violence Another aspect of gifting has been explored by Pierre Bordieu in his book The Logic of Practice. He identifies a gift as "symbolic violence" and "as the most economical mode of domination". Here i...