Gifts and Bribes in Business
The holidays are a time of gift-giving, and this occurs in the business world every bit as much as within the family nest. But when does gift-giving become bribery?
This became a topic last week at my company, where our kitchen was piled high with goodies sent in from vendors large and small.
Our consensus was that a tray of edibles was a safe gift. Nobody felt that a gift of popcorn, chocolates, nuts and fruit skewed our ability to make decisions in the best interest of the company.
However, some of us who make substantial purchases as a part of our jobs have encountered the occasional vendor who either sends boxes of steaks or lobster tails to our homes, or pointedly asks, "what would you like for yourself?"
Another approach we have heard is, "I am going on a fishing trip to Alaska, would you like me to save you a space?"
All in our company agreed that the steaks and lobsters were ok but "on the edge", and the Alaska trip was a definite no-no. For our business, a gift of up to $150.00 could be justified where a substantial business relationship exists. A thank you for current business is ok. A large gift which is more of an inducement for new business is not.
Geographical Bribery
I believe the centrality of bribery in business varies geographically. Our location, Chicago, is in the Midwestern heartland, arguably the region with most hard working, straight-laced values in the world, politics notwithstanding. As a group, we also carry with us a fear of having our picture on the front page some day, so we tend to be restrained when it comes to the inordinate greasing of palms.
Other places in the world consider bribery to be as much a part of business as the actual performance of work or the providing of services. Bribery is embedded in the speech and psychology of many countries. The Arabs call it "baksheesh", the Chinese say "guanxi", Russians call it "dat vziatku" and the Latin world uses "delitos de cohecho".
No matter what the term, the meaning is clear. Business is awarded to vendors based upon the size of their "gifts" rather than the price or value of that which they are selling. Favors are exchanged in a "black market" which is separate from the visible, official transaction.
Students of human nature and history might see a historical perspective. In feudal times, power was concentrated in the hands of few, based upon their wealth and ancestry. They organized society in a way that benefited them most. They owned the land and allowed peasants to farm it, but for a price. The price was free labor, harvested food, livestock or money. Thus the entitled one extracted tribute from the underling.
In a modern-day bribe, the powerful one is the one capable of awarding contracts or
favorable contractual terms. The underling offers the goods or service, but also gives something extra to the overlord.
It takes two parties to produce a bribery transaction. One who is willing and able to give, and one who is willing and able to take. When they enter into this deal, they each give up something, too. Both give up their integrity. The taker gives up some power to the briber, who now has "something on" the taker. The taker also assumes a big risk of discovery.
When I see buyers appear to select an unqualified vendor for contract award, I can't help but think that large gifts might have changed hands. Maybe such gifts are a great equalizer. They help the underqualified get work. Affirmative action for the capabilities-and-ethics impaired.
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