Article - Avoid Misunderstandings with Gifting through Corporate Branded Gifts

10 Jan 2018

Avoid Misunderstandings with Gifting through Corporate Branded Gifts

 

Although some companies have clear policies on the giving and receiving of corporate branded gifts, most companies in South Africa don’t have set policies. In a country with eleven official languages and immense cultural diversity, it is essential to be sensitive towards cultural differences and perceptions about gifting.

 

Human resource and marketing managers may dread the last quarter of the year because they have to set strict regulations regarding gifting and in many instances they have to do a lot of research to ensure that the corporate branded gifts presented to clients do not cause offence. Even something as simple as the colour of the gift can make a difference. Dealing with international clients and business partners is especially problematic, since gifting differs from nation to nation.

 

Of course, the giving of corporate branded gifts plays an important role in building brand loyalty, showing appreciation and developing strong business relations. A pen branded in the company colours and logo can remind a client of the firm when they have to sign a contract. However, the line between gifting as a sign of hospitality and bribing must be clear. It may also be difficult to distinguish when it is acceptable to receive gifts and when to decline. The decline part is especially difficult because you don’t want to offend the giver and there is always the risk of misunderstanding a client’s gesture as a bribe.

 

To understand when a gift is not really a present of goodwill, we need to look at what the reason for presenting the gift is. Is the reason to say thank you, as a promotion, to build good relations, or is it given to induce a bribe?

 

We can safely say that if the gift, branded or not, is given with the aim of getting a favour in return, then it is most probably not ethical and can count under bribes. When the gift is presented is also important. Is the gift presented just before closing an important deal, which will mean significant commission if the client signs on the dotted line? Has someone given your tender officer a corporate or personal gift just before the tender period closes?

 

If the corporate branded gift is presented after the fact, then it is simply a token of appreciation. If it is given to a client on their birthday, it is safe to say that it is also a gesture. The same applies if the gift is presented during the festive season and when the company sends gifts to all their important clients. Employers often also present gifts to employees on their birthdays, anniversary of the day they started to work at the company, during the festive period, as going-away appreciation gesture, in response to excellent work done by an employee and for bringing in a large deal. These are all ethical gifting.

 

To minimise the risk of gifting taken the wrong way, companies brand their gifts. This immediately sets the tone as appreciation token rather than bribe. We recommend you do the same. Though it is still possible to bribe with corporate branded gifts, it more unlikely and the gifts are thus also appreciated as gestures of goodwill.