Different approaches to approving gifts and hospitalities in a business context
Compliance Strategy #3: Clear limits that cannot be exceeded
For this strategy, the company defines limits by value per gift or invitation that cannot be exceeded. This approach allows for the acceptance or giving of smaller gifts and invitations and takes into account different cultural norms by defining different limits for each country or category.
While it is relatively simple to implement, there are clear drawbacks of this strategy:
- Sometimes it is difficult to estimate the exact value of a gift or invitation
- Context-dependent exceptions are not provided for
- No clarity or control over whether limits are being observed
The guide on the management of gifts and entertainment policies in companies
From establishing appropriate rules, defining procedures and responsibilities, to internal communication and employee training.
Conclusion: Effective approval processes are essential
Dealing with gifts and hospitality correctly from a compliance perspective is no easy task. It requires clear rules and processes, which must also be easily verifiable in the event of an external audit. Having a gift register is essential: who was given what by whom, when and for what occasion? The gift register should at the very least provide this information in order to be able to verify decision-making processes and reduce liability risk.
Nevertheless, rules and processes should not leave employees in sales, purchasing and management feeling frustrated. Smart and automated processes help to create the right balance between reliable compliance and growing the business. The use of specialised software helps to reduce internal friction while at the same time ensuring the effectiveness of the compliance programme when it comes to gifts and hospitality.