Why You Need an Employee Gift Policy With a Sample Policy By Susan M. Heathfield Updated on 02/05/20 The gift policy defines who may give a gift to company employees. It provides guidance to company employees about what is and is not appropriate to accept as a present, offering, advertisement, award, or token of appreciation. These gifts may come from a customer, vendor, supplier, potential employee, or potential vendor or supplier. The gift policy states whether employees are allowed to accept gifts both within and outside of the work premises. If a gift is allowed, the gift policy defines the acceptable value and type of gift permissible to employees. Finally, the gift policy defines under what circumstances an employee may accept a gift. The policy defines any exemptions to adhering to the rule. It will also outline exceptional situations or circumstances where employees may accept gifts that are otherwise not allowed. Usually, exceptions to the stated expectations in the gift policy require the signature of the company president or that of another senior-level employee. Code of Conduct Requires an Employee Gift Policy No matter how well-meaning or well-intentioned a gift, the potential exists for impropriety-or the appearance of impropriety. to be present. A gift policy ensures that employees adhere to the company code of conduct in giving or accepting gifts or other such tokens of appreciation. Codes of conduct generally state that all employees demonstrate a commitment to treating all people and organizations impartially. This mandate extends to those people and organizations an employee comes into contact with and those where they conduct business. A gift policy requires employees to demonstrate the highest standards of ethics and conduct in relation to potential and existing vendors, suppliers, and customers. It ensures that employees practice equal treatment, unbiased professionalism, and non-discriminatory actions. The policy relates to:All vendors and suppliers, both existing and potential The customers and clients again, both existing and potential Employees and potential employees Independent contractors and agents of the company Any individual or organization with whom they come into contact Past Gift Policy Practices In earlier business days, at a large corporation, the gifts accepted by the purchasing agents and others were the stuff of legend among the other employees. The vendors were, in essence, buying access to sales and preferential treatment. In return for their purchases of the vendors' products, the vendors spent elaborate sums of money to wine, dine, send the purchasing agents on trips. It was common practice to provide lavish gifts for buying agents and for some of the company executives. It is unknown what kinds of gift policies were on the books at the time, but if policies existed, they were not followed. Getting into the purchasing department became a standing joke among people who wanted to make more money. Past Share-Alike Policies In a second example, a company that had in place a comprehensive gift policy is illustrated. The policy was written, every employee was trained, and the culture rewarded appropriate conduct and adherence to the policy. Vendors and suppliers were informed of the no gifts policy. Some chose to ignore it, especially during the holiday season, but most complied. When the policy was ignored and a gift arrived for an employee, the standard practice was to raffle it off to all employees if it could not be shared among the staff. The proceeds from the raffle went to charity so employees felt good about participating if they so desired. They only participated if they wanted the item such as the annual Omaha box of steaks and other goodies that arrived each year from a persistent vendor. Food gifts, baskets, cookies, candy, and other gifts that employees could share were centrally located-and all employees had access and shared. Thiswas seen as the fair and equitable treatment of employees. However, it truly is not fair in a workplace for some employees to benefit more than the rest of the employees because of their position or proximity to vendors The difference between the employee behaviors in the two companies is why the adoption and enforcement of a company gift policy are strongly recommended. Why Have a No Gift Policy Policies can help a company avoid conflict of interest or the appearance of a conflict of interest. They help to guide employees to examine the ethics of acceptance. Many companies and their employees do not accept gifts from potential or existing vendors, suppliers, customers, or any other individual or organization, under any circumstances. The companies' codes of conduct require that all employees demonstrate the organization's commitment to treating all people and organizations, with whom we come into contact or conduct business with, impartially. Your employees demonstrate the highest standards of ethics and conduct