When suppliers send Christmas gifts to executives

Last year, anonymous workers made an issue out of holiday gifts received by our executives. While the issue didn’t ripen into a full-blown controversy, we’d like to be proactive this time with an objective policy. Please help. – Brown Rock.

Every December, as corporate inboxes fill with year-end reports and final billing reminders, another seasonal tradition quietly unfolds: suppliers, affiliates, and business partners send Christmas gifts to company executives, managers, and procurement supervisors. Some arrive as modest tokens of appreciation.

However, in many cases, holiday gifts show up looking suspiciously like an attempt to smuggle influence inside a ribbon-covered basket. It isn’t inherently wrong. In many cultures, including the Philippines, Christmas gift-giving is a longstanding symbol of professional respect and goodwill.

However, in modern corporate governance, good intentions collide with an even stronger imperative: ethical transparency. One charming holiday hamper can easily become tomorrow’s audit headache. And nothing ruins the Christmas spirit faster than the office grapevine fueling discord.

This is why a clear, firm, and fair gift policy isn’t optional. It’s a risk management necessity. Transparency is not just a corporate buzzword. It’s a mechanism for trust. When executives receive gifts, even innocently, it can create real or perceived conflicts of interest. Business decisions might be questioned. Vendor relationships might be distorted. Competitors may suspect bias. Employees might see favoritism. And people on the sidelines won’t be amused.

GIFT POLICIES MATTER
A well-designed gift policy is not about rejecting goodwill. It’s about ensuring that no corporate decision is adversely affected or appears to be affected by material favors. In governance, especially if the gifts received are of high value, perception becomes as powerful as reality. To avoid all this, you can be guided by the following values:

One, establish a complete ban on cash. This includes electronics transfers via e-wallet, actual cash in envelopes, gift cards, digital vouchers, or anything that behaves like money. Cash is untraceable and undeniably compromising. It instantly raises red flags that no compliance officer wants to defend.

Two, allow modest or reasonable gifts. In the Philippines, this could mean anything not exceeding P500 in value. In case of valuation disputes, a simple check with online sellers can do the trick. These “token” items include calendars, coffee mugs, umbrellas, or any simple corporate giveaway.

Three, share anything above the limit. If the gift’s value is a bit “scandalous,” it must be “donated” as prizes for the company Christmas party. This is applicable also in cases of perishable goods. This requires a formal declaration by the recipient and the gifts turned over to the human resources department, internal audit, or the ethics office.

Four, require mandatory disclosure. There should be no exceptions. That means every gift, big or small, must be declared within 24 hours of receipt by the security office, which is the company’s “first line of defense.” A simple digital or paper form is sufficient. In other words: Declare it so you don’t have to defend it.

Five, make the policy applicable year round. It doesn’t have to be limited to holidays or year-end celebrations. This rule exists in the strictest compliance frameworks. Even the tiniest gift becomes questionable if it arrives while a vendor is being evaluated or a contract is under negotiation.

Six, inform all suppliers and business partners. A gift policy only works if suppliers actually know about it. Many companies fail here. They create a document, upload it to a dusty HR portal, and hope everyone guesses correctly. Send an annual reminder to all business partners. A polite statement does the job while maintaining goodwill with boundaries.

Seven, lead by example. Even the most elegant policy is worthless if top executives treat the gift policy as optional. Executives set the ethical climate. If top executives accept expensive holiday baskets, everyone else will follow. If they decline politely, others will do the same. Otherwise, the next best thing is to declare it with the compliance team.

Eight, document the consequences for violation. Policies without consequences are merely suggestions. Companies should explicitly state that undeclared gifts and their acceptance, especially if they’re delivered at other locations, may lead to disciplinary action. This isn’t about punishment. It’s about protecting the company from reputational fallout.

Nine, accept professional goodwill, not the influence. Christmas gifts must never shape corporate decisions. The best companies know how to appreciate the intention without compromising integrity. This is the objective of having a smart gift policy. It ensures everyone’s goodwill remains aboveboard, modest, and utterly corruption-free.

In conclusion, a strong policy on gift-giving by suppliers isn’t about being killjoys during Christmas. It’s about protecting your company’s integrity, reputation, and decision-making. Even for those outside of procurement and vendor relationships, perception is often as powerful as reality.

A bottle of wine today can look like a “thank you,” but tomorrow it may be interpreted as a “please remember us during bidding season.” By adhering to such policy, the company ensures that all business decisions remain merit-based, ethical, and free from external pressures — protecting both organizational credibility and the integrity of its people.

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