Oh, the holiday season! It's a time filled with joy and hospitality, but it can also be a bit stressful for those of us in compliance.
We all know the story: A colleague attends a client meeting, feeling festive and eager to show appreciation. They bring along a wrapped box of gourmet chocolates, fully aware of the client’s fondness for sweets.
They present the gift, and the client gets concerned and explains that accepting such gifts is against their organization’s policy. Queue the awkwardness while trying to keep a professional demeanor.
It’s a good intention gone awry — and it could have easily been avoided. We know you’re likely reminding your teams about your own organization’s gift policies and guidelines this time of year. But this season, consider including material on why other organization’s policies matter, too.
Training on ALL Recipients
You’ve long trained our teams on the importance of gifts and hospitality with especially sensitive groups, such as public officials and healthcare professionals.
But many organizations are taking that a step further, placing greater emphasis on understanding the needs of all recipients. A lack of awareness about a recipient’s gift acceptance guidelines can create not only awkward situations but potentially problematic situations that could harm your organization.
The Hidden Costs of Generosity
Let's meet Hamilton.
Like the chocolate scenario, Hamilton found himself in an uncomfortable position with a business connection. But here, his dinner guests could be in a more troublesome situation, depending on their industry and role in their organization. And Hamilton could be too – and it was all unintentional.
Either way, the professional relationship may be bruised – the exact opposite of the situation Hamilton wanted to create.
Hamilton likely knew all the golden rules for gift policies (thanks, Compliance!) that always bear repeating:
- Any gift should enhance a professional relationship, not complicate it
- Always choose modest, professional gifts
- Avoid cash or its equivalents
- Make sure gifts are in frequent and given openly
- Know if your recipient is a public official or healthcare workers
Importance of Recipient Policies
But Hamilton could use some reminders from compliance to check with all recipients before giving a gift, entertaining a client, or offering any of the (assumed) appropriate business courtesies.
- Ask: Train your organizations to know it’s always perfectly acceptable to ask a contact about their gift policy beforehand. A quick, friendly inquiry can save everyone from an uncomfortable situation.
- Lean on Connection: Sometimes, instead of a physical gift, encourage those in your organization to foster connections through shared experiences — like a coffee chat or casual lunch. This way, both parties can partake, allowing any engagement to remain modest and professional. It’s a great alternative, especially for those with strict hospitality norms, as everyone can maintain integrity by paying individually.
Wrapping It Up
As the holiday season unfolds and the opportunity for gift-giving rises, remember to reinforce that the intention behind giving should enhance professional relationships, not complicate them. And that now means knowing your recipient’s policy before exchanging gifts – helping to diffuse potential pitfalls and spread goodwill without the gaffes.
Want to learn more? Browse our website or contact us directly at hello@rethinkcompliance.com.
