With these rules you can create clarity for your employees and take action against corruption in your company
2. Defining a gift or invitation
The policy should define what constitutes a gift or invitation:
- Gifts generally refer to items of value given to or by employees. They can be consumer goods, branded items, discounts or cash. Common examples are a bottle of wine or a box of chocolates.
- Hospitality includes meals, beverages, and travel and accommodation expenses. Typical examples are business meals, client trips, site tours, cultural, sporting events and holidays.
Definitions of corporate gifts and entertainment are far reaching and include:
- Restaurant meals
- Invitations to trade fairs
- Payment of business travel expenses
- Financial credit
- Free services
- Provision of premises
- Gifts that an employee of the company gives to a relative or acquaintance
- Hiring a relative for a job or internship
- Study grants for children and relatives
The policy should precisely state what types of gifts and entertainment are covered. Ideally, the different types should be illustrated with practical examples. These can also be incorporated into training courses and internal communications.
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: having robust guidelines and rules is only half the battle
It’s done: the most important rules for gifts and hospitality in the company have been defined, the most common cases have been clarified, and everything has been recorded in the guidelines. But the work does not stop there: the second step is to ensure that employees know the rules and are able to apply them. When the answer isn’t immediately clear, there should be a process through which employees can get help quickly and easily.
And last but not least, it is important for companies to have control over gifts and hospitality. If individual gifts are to be viewed critically in retrospect, a gift register is essential: who was given what by whom and on what occasion? The gift register should at least provide these answers in order to make decision-making processes clear and reduce liability risks.
In general, rules and checking processes should not lead to employees in sales, purchasing and management feeling frustrated and surrounded by red tape. Smart and automated processes help to create the right balance between reliable compliance and business focus. The use of specialised software helps enormously to reduce internal friction and at the same time ensures robust compliance for gifts and hospitality.