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Bribery and Gift-Giving Policies at Companies Case Study

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Updated: Dec 11th, 2020

Ethical Scenario

The presented case study revolves around the issue of ethics in business organizations. Any misbehavior such as gift-giving with the intention of getting rewards or promotions is usually against many companies’ codes of ethics. This discussion explains how the manager of ABC Company should have handled the ethical dilemma. The next part of the paper gives a detailed policy and procedure for dealing with bribery and gift-giving.

Handling the Situation

If I were ABC Company’s manager, it would have been inappropriate to accept the offerings and gifts from John. The same practice would also be applicable to every employee. This strategy would then be followed by a powerful communication model to inform the workers about the existing policy and what it says about gift-giving (Pope, 2015). John would also be informed about the malpractice and punished in accordance with the existing code of conduct. This initiative can ensure that every employee is responsible.

Coca-Cola Company

At Coca-Cola, the issue of gift-giving is taken seriously in an attempt to promote ethical conduct. The corporation has a powerful code of ethics that discourages employees from offering gifts to their seniors or managers. Those who engage in such malpractices are punished accordingly (Pope, 2015). They can lose their jobs, be demoted, or transferred. The company educates and guides its workers in order to act in an ethical and professional manner. Continuous training and empowerment are some of the practices undertaken to discourage employees from gift-giving. The presence of this code of ethics is something that makes it easier for the corporation to achieve its potential. Emerging challenges and malpractices are monitored and addressed by the topmost leaders at Coca-Cola. Companies should consider this strategy in an attempt to deal with cases of bribery.

Discussion Board Case

The analyzed case on the discussion board focused on unethical practices in a business organization. Such misbehaviors affect the performance of companies and make it easier for them to meet the needs of different stakeholders. The case examined issues such as deceitful accounting procedures and the inability to present credible information to different stakeholders. Corporations that engage in such behaviors are associated with ineffective corporate cultures. Their workers find it hard to report every malpractice, thereby affecting the integrity of their respective companies. The described case resonates with the issue of gift-giving in a given business firm. This is true because of the two amounts to undesirable practices that can affect performance. Any unethical behavior such as deceit or bribery is inappropriate and must be addressed using evidence-based initiatives (Pope, 2015). These discussions, therefore, explain why managers should use their concepts and skills to deal with such problems and make their companies successful.

Policy and Procedure Document

Policy Statement

Gift-giving, presents, and bribes are unethical and amount to a crime (Matthews, 2017). Employees should not give bribes to receive rewards or promotions. This company is committed to the detection and deterrence of bribery.

Scope

At ABC Company, “ethics” is defined as a set of moral principles that inform the behaviors, attitudes, and engagements of every employee. This policy, therefore, applies to all employees, including those in managerial positions (Gorsira, Steg, Denkers, & Huisman, 2018). Every person should be ready to support and follow the existing code of ethics.

Policy Commitment

Managers have a role to monitor the practices of their employees (Pope, 2015). They should also coordinate with human resource (HR) leaders to deal with bribes. Additionally, supervisors and leaders should not support or protect those who engage in similar misbehaviors.

The HR department should investigate every aspect of bribery. It should also liaise with different stakeholders in the company in order to achieve positive results (Hardy, 2016). The purpose of this policy is to support and sustain the most appropriate organizational culture whereby desirable practices can be pursued. Employees should be guided, supported, and required to focus on the implemented code of ethics.

Procedures

The HR department has adequate measures to prevent any form of bribery in the organization. Each case is pursued depending on its complexity. Employees and managers should collaborate to address this issue. Existing codes of ethics are communicated to different stakeholders efficiently (Szto, 2016). Workers are informed about the policies, and disciplinary mechanisms are put in place. Procedures aimed at preventing gift-giving and bribery are reviewed and improved periodically.

Penalties

It is unacceptable for individuals to offer gifts to their seniors or supervisors. Employees should not engage in activities that are against the outlined policy. Every individual who acts against this policy will be punished accordingly depending on the nature of the offense. The available disciplinary procedures in the organization include termination, demotion, pay cut, and/or loss of privileges (Tsetsura, 2015). The police can be involved in the offense that affects other peoples’ rights.

Conclusion

Employees should be ethical and ready to support their companies’ objectives. The above case study can be addressed using proper leadership mechanisms whereby different workers are sensitized about the malpractice. The above Policy and Procedure document can make it easier for managers to deal with similar situations efficiently.

References

Gorsira, M., Steg, L., Denkers, A., & Huisman, W. (2018). Corruption in organizations: Ethical climate and individual motives. Administrative Sciences, 8(1), 4-22. Web.

Hardy, M. C. (2016). Drafting an effective ethical code of conduct for professional societies: A practical guide. Administrative Sciences, 6(4), 16-26. Web.

Matthews, M. (2017). Gift giving, reciprocity and the creation of trust. Journal of Trust Research, 7(1), 90-106. Web.

Pope, K. S. (2015). Steps to strengthen ethics in organizations: Research findings, ethics placebos, and what works. Journal of Trauma & Dissociation, 16(2), 139-152. Web.

Szto, M. (2016). Chinese gift-giving, anti-corruption law, and the rule of law and virtue. Fordham International Law Journal, 39(3), 591-627.

Tsetsura, K. (2015). Guanxi, gift-giving, or bribery? Ethical considerations of paid news in China. Public Relations, 9(2), 1-26.

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IvyPanda. "Bribery and Gift-Giving Policies at Companies." December 11, 2020. https://ivypanda.com/essays/bribery-and-gift-giving-policies-at-companies/.

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IvyPanda. 2020. "Bribery and Gift-Giving Policies at Companies." December 11, 2020. https://ivypanda.com/essays/bribery-and-gift-giving-policies-at-companies/.

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IvyPanda. (2020) 'Bribery and Gift-Giving Policies at Companies'. 11 December.

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