Gift or bribe? The characteristics and the role of gift policies in the prevention of corruption

Dominic Peltier-Rivest

Journal of Financial Crime, 2023, vol. 31, issue 5, 1094-1105

Abstract: Purpose - This paper aims to explore the current trends in corruption and investigate the characteristics of corporate gift policies and their role in preventing bribery. Design/methodology/approach - This is a descriptive study based on primary data from a recent sample of Canadian companies’ codes of conduct and secondary data from recent corruption surveys published by non-governmental organisations. Findings - This study shows that 25% of all private and public corruption cases generate financial damages of more than US$1m per case and that 50% of all investigated fraud cases are corruption cases (ACFE, 2022). Furthermore, the Western Europe and EU region is perceived as least corrupt, whereas Sub-Saharan Africa is perceived as the most corrupt region (Transparency International, 2022). However, bribery is fairly common in nine EU countries where 10% or more of public service users bribed public officials to influence their decisions (Transparency International, 2021). Results from primary data show that 9.3% of firms put a total ban on gifts given to governmental officials, whereas 35.2% require a superior’s approval and only 5.5% state a dollar limit for the gift. Results also show that not a single firm prohibits the giving of gifts to non-governmental stakeholders or the receiving of gifts from any type of stakeholder. This paper argues that gifts can bias the recipient’s judgement and improperly influence future business decisions based on the gift’s subjective value, nature and context. Research limitations/implications - This paper extends previous research by examining the characteristics of corporate gift policies. It also helps organisations improve their gift policies in an effort to reduce corruption. Originality/value - It is the first paper to investigate the characteristics of corporate gift policies and their role in preventing corruption.

Keywords: Gift policy; Corruption; Bribery; Ethics; Code of conduct; Fraud (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-09-2023-0222

DOI: 10.1108/JFC-09-2023-0222

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