Presentation on Gifts


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Presentation on Gifts

  1. 1. MGT 2067Y (3) Business Ethics and Good Governance<br />Presentation on Gifts by:<br /><ul><li>SoujataRughoobur
  2. 2. JasbeerAlladin 
  3. 3. NawsheenWoozeer 
  4. 4. RakshaMunbodh 
  5. 5. AsheshRamjeeawon</li></ul>BSc (Hons) Management with Information Systems Level III<br />23 April 2010<br />
  6. 6. Agenda<br />Introduction<br />Video survey<br />Literature Review<br />Cases<br />Role Play<br />Conclusion<br />Recommendations<br />
  7. 7. introduction<br />Gifts<br />“Gifts are frequently perceived as indicators of friendship, trust and goodwill, intended to further relationships. Gifts are often reciprocated and may not in themselves create any expectation of preferential treatment. <br />To avoid any possible problems in this area, most companies set strict guidelines on what can be accepted or given, their value, frequency and timing. <br />It is recommended that such gifts should be openly declared as company policy. ” (Discuss this statement)<br />“A problem well-defined is a problem half-solved”<br />
  8. 8. Gift Giving<br />A Gift is something given voluntarily without payment in return, as to show favor towards someone, honor an occasion, or make a gesture of assistance – def.<br />Examples of popular business gifts:<br />Company branded items like pen, mug, t-shirts, umbrella etc.<br />Business card holder for company’s clients, paperweight<br />Wine or fine liquor<br />Tickets <br />Books<br />
  9. 9. Motivation behind giving gift<br />In some business cultures, gifts are means of cimenting relations and are given without influencing decision-making. <br />companies offer gifts to their customers in order to acknowledge their loyalty to the company and ultimately to enhance relationship between customers.<br />
  10. 10. Bribery<br />Bribery is anything that the jobholder is prepared to accept knowing that he is not morally entitled to do so<br />Effects of Bribery<br />The giving of gifts to influence outcomes and without transparency of your intent ultimately undermines trust in business relationships <br />Bribery violates the rules of fidelity and upon the discovery, good business climate and confidence in contracts are undermined.<br />
  11. 11. Video Survey<br />Accepting a gift at work is morally acceptable?<br /> Do you think a company should practice a no-gift policy (banning gifts giving and receiving)<br /> Do you think having guidelines on gifts in a contract of employment would be appropriate?<br /> Have you ever been tempted to bribe?<br />
  12. 12. Literature review<br />Gifts<br />"There's no such thing as a free lunch”<br />
  13. 13. Code of Ethics<br />Code of ethics: set of principles of behavior within an organization that guide decision making and behavior.<br />Purpose: <br /><ul><li>To improve ethical culture in an organisation
  14. 14. To prevent fraudulent behavior within the organisation
  15. 15. To provide members of the organisation and other interested persons, to make ethical choices in the way they carry out their work.</li></li></ul><li>Utilitarianism<br />Utilitarianism has its roots in 18th and 19th century social and political philosophy<br />Decide what to do by considering the consequences of our actions.(Consequentialism)<br /> Under this philosophy, by making a costs and benefits analysis and decisions that promote the greatest amount of values for the greatest number of people is the most reasonable decision from an ethical point of view.<br />
  16. 16. Act and Rule utilitarianism<br />In Act utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or the societal constraints such as laws.<br />Rule utilitarianism, however, considers the law and is concerned with justice.<br />The difference is that act utilitarianism is concerned with the consequences while rule utilitarianism is concerned with the consequences that fallout of following a rule of conduct<br />
  17. 17. M. Friedman’s Philosophy<br />His theory is based on the economic duty of the business; profit maximization. Accepting any forms of valuable gifts which will contribute towards the increase in the profitability of the business is acceptable.<br />As business persons are “experts” in making money; the policy of accepting gifts will surely be incorporated in the company’s policy as it will bring value to the company itself.<br />
  18. 18. Deontology<br />Deontology refers to the science of duty and also a non-consequentialist moral conception; it observes MORAL RULES without any regard of consequences of actions.<br /> The idea of gifts must be inline with the company policy for it to be accepted within the organisation<br />
  19. 19. Kantian Ethics<br />Universal law which puts emphasis on whatever is right for one must be right for everybody; categorical imperative. <br />Rule is rule under any circumstances; if company policy does not allow gifts it must be applicable for every individual.<br />
  20. 20. Theory of Relativism<br />Whether or not the practice of bribery is accepted or tolerated in a country depends on the prevailing culture and on personal values<br />What constitutes bribery in a particular setting may be the norm in another one<br />
  21. 21. Gift Culture of Companies in the world<br />
  22. 22. cases<br />Gifts<br />“To receive gifts is to lose freedom. ” - Sandi<br />
  23. 23. Obtaining building permit<br />Offering speed money to local authorities to hasten procedures and stimulate officials.<br />The bribe-payer wants to speed up the process of movement of files and communication<br />Public officials develop the habit of not fulfilling their basic duties until they are suitably persuaded to do so. They expect extra money in form of gratuities to do their work.<br />
  24. 24. Implications<br />Evolving practice of bribery in Mauritius<br />The practice of offer and invitation of bribes is almost part of the Mauritian Culture.<br />Other cases include:<br /><br />
  25. 25. Wedding Gift<br />A business person gave an excessive amount of money as a wedding gift to the son of one of the most influential government officials. <br />His money was literally a wedding gift. However, shortly after the wedding, the business person informs this government dignitary indirectly that he needs a permit to expand his business. <br />Gift or bribe? <br />
  26. 26. Implications<br />Gift<br />Culture of the society to offer gift, to strengthen relationship<br />Bribery<br />Money was a gift but informally it may be interpreted as bribe<br />
  27. 27. Multinational company with over 20 branches<br />Good reputation of reasonable dealings and ethical conduct of employees<br />Employees should use good judgment & moderation when giving or receiving social amenities.<br />This would help to avoid situations that would compromise an employee’s impartiality<br />
  28. 28. Rinnai Gift Policy continued..<br />According to the company’s policy gift is never unsuitable in the business world.<br />Promotional gifts such as t-shirts, mugs and caps can be received from other parties but it should not exceed $500.<br />Do you think that all the employees follow this rule?<br />
  29. 29. Rinnai Gift Policy continued..<br />Another policy is that employees can get recourse to entertainment with the customers only if it advances the company’s profit.<br />For e.g.: accompany a client to a cultural show, attend a supplier’s holiday function.<br />Is this act not benefitting the employee also?<br />
  30. 30. Role Play<br />Gifts<br />“ Gift Policy at a Fictitious Company” <br />
  31. 31. conclusion<br />Gifts<br />“A gift consists not in what is done or given, but in the intention of the giver or doer.” <br />
  32. 32. Conclusion<br />Use of corporate gifts can at times be important for a business, in cases where the employees are demotivated or badly paid, this can be a motivation for them<br />However a business without a gift policy also fosters the practice of corruption in business<br />
  33. 33. Recommendations<br />Gifts<br />
  34. 34. Recommendations<br />Employees from different levels should be reminded of the gift policy, on a regular basis<br />Higher levels should abide by the principles and set the examples <br />There should be open and clear communication between management and employees<br />Gift Policy should be put in practice and monitored by a trustworthy and unbiased team<br />
  35. 35. The end<br />Gifts<br />“ Thank You for your Kind Attention!” <br />
  36. 36. References<br />Moody M (2006), Business Ethics: Case Studies and Selected Reading – What is business doing about corruptions, Cengage Learning<br />Beekun et al. Business (2001), Ethics in Brazil and the U.S. : Egoism and Utilitarianism, Social Science Research Network<br />R. Bradburn (2001), Understanding Business Ethics, Cengage Learning, illustrated edition<br />M. Friedman (1970), The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine<br />G. Napal (2006), An assessment of the ethical dimensions of corruption , Electronic Journal of Business Ethics and Organisation Studies, Vol. 11, No.1 <br />Business Ethics- Rinnai, Available from: (last accessed: 9 March 2010) <br />Business Ethics Scenarios, Available from: [Last Accessed: 12 March 2010]<br />Napal, G. 2001. Disclosing Corruption: A Move Towards Transparency in Mauritius, Edition Le Printemps<br />Garett, D. J. (2005, March 30). Bribery. Retrieved March 26, 2010, from<br />Rama Jayshree Bye (2008), Combating corruption through corporate governance: a case study in Mauritius <br />