Understanding business ethics is like cautiously manoeuvring a hazardous terrain. We hear phrases like “The cost of doing business” or “Our competitors are doing it” “Not a big deal” as justifications for corrupt payments. But where do we draw the line between what’s acceptable and what’s not?
Gift-giving, tipping, and bribery blur these lines even further. George Washington once said, “Few men have virtue, to withstand the highest bidder,” highlighting how easily we can succumb to the allure of money or lavish gifts. But are all forms of giving, the same?
Let’s break it down. A gift, like buying a novel for a client, is a token of goodwill, albeit with a business twist. Tipping, such as leaving money for a waiter, is a customary way to show appreciation. But when cash changes hands for favours, like getting a prime seat at a soccer stadium, it becomes a bribe. Intent is the key here.
In each scenario, something is given with the expectation of a future benefit or in return for a service. Is that extra tip truly gratitude, or a subtle way to ensure better service next time?
This ethical dance isn’t new. It’s as ancient as the first cave-dweller tipping their hat to a barista. As we delve deeper, we’ll uncover the complexities of these transactions and the thin line between generosity and corruption.
Gift dilemma
When you give someone a gift, it’s like saying, “Hey, I appreciate you!”
or “Thanks for being awesome!” It’s a way to make friends and show you care. But sometimes, gifts can get a little too fancy. Instead of a simple present, you might end up with expensive stuff like fancy gadgets, branded perfumes, smartphones, jewellery, or liquor bottles. These flashy gifts can sometimes be used to get something in return, like a favour or a business deal, in the grand game of commerce.
In business world, giving gifts is akin to a celebration. People exchange gifts for birthdays, promotions, and joyous events. But there’s a dilemma: when does it cross into unethical territory? Companies often offer gifts, such as extravagant trips to gain favour. But is it genuine generosity or a veiled attempt to sway decisions? Is that a nice gesture or a sneaky bribe? Imagine a pharmaceutical company whisking doctors away to a conference in Singapore – is this a gift or a bribe? Does the interpretation lie in the eye of the beholder? This distinction isn’t always clear.
In India, companies are aware that giving gifts can get them into trouble. It might seem like a friendly act, but it could be seen as trying to influence someone unfairly. So, many companies have rules about what kinds of gifts you can give and how much they can cost. But even a small gift given with the intention of getting something back can be like a bribe. The US Judge John Noonan in his book “Bribes” mentions: “Greeks did not have a word for bribes because all gifts are bribes, given by way of reciprocation for favours past or to come”.
But what about giving to charity? That’s different because you’re not expecting anything back, and they are meant for noble purposes. Charitable donations, where no reciprocation is expected can, at times, be both huge and secret.
Different cultures have different ideas about giving gifts. In some places, it’s totally normal, but in others, it’s a big no-no. So, when does giving a gift cross the line? It’s a question that’s been puzzling smart people for a long time.
Motive matters
When we give gifts, it’s important to think about why we’re giving them. In India, giving gifts is not against the law, but why we give them matters a lot. A true gift is given freely, with no expectations in return.
Figuring out whether a gift is a kind gesture or a bribe can be tricky. For example, while giving a small gift during a festival might not raise too many eyebrows, a gift given at the time of a tender process may be seen as a bribe. The time matters. Gift should involve no obligations on the giver and the receiver.
Bribes come in all shapes and sizes. Some are huge sums of money exchanged for contracts, while others are small favours passed between individuals. But no matter the size, they’re all wrong.
And when someone demands a bribe, it’s even worse—it’s extortion. So, it’s important to think twice about why we give gifts and whether they might be seen as bribes.
‘Tip’ping point
During the Middle-Ages, rich people traveling would give coins to poor people, hoping it would keep them safe. In Tudor England, guests who stayed overnight had to pay the servants when they left to thank them for their extra work. Today, we often give extra money to restaurant servers, taxi drivers, and hairdressers for good service.
Some people think this encourages better service in the future, while others see it as a thank-you for good service in the past. But why do we think tipping is okay, while bribing isn’t? Both are gifts for good service, but tipping happens after, while bribing happens before. Is there a trap where attitudes and beliefs about tipping lead to bribing?
The line between giving tips, gifts, and bribes is very thin, but if we use some common sense and doubt things a bit, we can handle this tricky situation well. Maybe one day we’ll know how to give tips without feeling like we’re doing something wrong! Until then, let’s be careful with our money and our morals.
