What is the Gift and Entertainment Policy? How do I manage it?
Corporate gifts and entertainment have long been a tradition in the corporate world. Gifting has been a time-tested way of conducting business, as well as one of the most important strategies to manage and maintain positive working relationships. However, there are, several possible dangers that could result in a genuine conflict of interest between the corporation and regulatory agencies.
Hence, a company’s compliance team must ensure that conflicts of interest do not arise. The key is to have a process that can give a relevant compliance platform that will help manage inflow and outflow and analysis of the company’s gifts and entertainment data.
Below are some of the examples designed to help employees and managers make an appropriate decision on accepting or declining any gifts:
- A company’s customer invites you to a dinner party to celebrate 25 years of business with other business officials. In such a case, you can attend the dinner party as your company’s representative and if the line manager agrees.
- Your company’s customer invited you and your spouse to a gala dinner at a private farmhouse as a thank you for his long-standing vendor. In such a scenario, if you accept the invite, it would be compromising your integrity and independence as a company representative.
The Gifts and Entertainment exchange between an organisation and its customers, suppliers or business partners is an essential and acceptable part of the business. However, if the gifts and entertainment received or given are of substantial value, then, it may create an actual or perceived conflict of interest.
We at Violet Infosystems help you develop customised gifts and entertainment policy that consists of following general features and more could be added as per the requirements:
1. Automated permissions and denials
2. Pre-clearances
3. Records of the inflow and outflow of gifts or entertainment taken or give
4. Integrated surveillance and operations
5. Case management and reporting