Sending a corporate Diwali gifts is no exception these days and pretty much every company doesn’t let go this opportunity to nurture relationship with the clients and employees. However, every corporate Diwali gift is not equal and one must remember to not cross the line for a gift to no longer stay as a gift, but rather become a bribe.
To set the mode right, there is nothing wrong in exchanging gifts during festivals. Diwali is one of the most celebrated festivals in the country and no wants to stop you from sharing the festive vibe with people in your business circle. However, over a period of years these gifts has kept becoming bigger and expensive and thus are not under the radar for any possible case of corruption or bribe.
First and foremost, a corporate Diwali gift should be a gift and stay well within a boundary
Prevention of Corruption Act, 1988, the anti-bribery and anti-corruption legislation prohibits any public servant to receive any sort of a gratification in return for a favour. The government officials, by rule are required to report any gift in excess of Rs 5000. According to Section 12, the act of giving any gratification is equivalent of giving a bribe and is a criminal offense. Even though the private sector is not covered under this law, it is prudent to make sure that the value of gift is well within a financial limit and you should be able to justify the gift expense, if the need arises.
Stay away from giving cash as a Diwali corporate gift
Under no circumstances, should cash be used a way of Diwali corporate gifts. If for any reason, and especially for the bottom of the org chart, if cash needs to be distributed, it should be transferred electronically via bank transfer.
Stay away from giving expensive gifts as a corporate Diwali gifts
A ticket for a foreign trip or the highest model of iPhone as a corporate Diwali gift can no longer be considered as a compliant corporate gift. The custom of giving gifts and experiences can surely nurture business relationships, but giving ostentatious gifts cannot be considered as ethical gifting and can actually make your organisation come under scanner for dubious gifting.
Keep records of all Diwali corporate gifts
For obvious reasons, all records of Diwali corporate gifts should be kept, loud and clear explaining the cost of the goods, nature of the goods and the list of recipients.
Maintaining clear policies for Diwali corporate gifts
The senior management should set a clear tone to define what is allowed and what is a “Big No” when it comes to the selection of the corporate gifts. The management should also define a threshold for the value of corporate gifts.