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Five Tips on Accepting Gifts – “Ask the Ethicist – Brazil Edition”

Erica WinterLeave a comment

The following was originally published in the American Society of São Paulo’s October 2014 newsletter, the Forum:

Dear Ethicist,
Last year during the holidays, I received panettone, Italian bread, from a business contact. Could accepting panettone get me into trouble at work?
Signed,
Sweet Tooth

Dear Sweet Tooth,
Accepting a gift from a business contact could result in a conflict of interest but unless stuffed with cash or coated in gold, receiving panettone should not get you in trouble since it’s a low-cost consumable. Nonetheless, the details of the situation matter and here are five questions to consider beyond value when accepting gifts.

  1. What was the gift giver’s intent? Regardless of the value, if you believe the gift was given with the intent to gain a favor in return, you should not accept it.
  2. Does accepting the gift violate company policy or anti-corruption laws? Many companies must adhere to the U.S. Foreign Corrupt Practices Act and/or the UK Bribery Act in addition to local laws.
  3. What are your job responsibilities? Employees with procurement responsibilities are generally prohibited from accepting gifts of any kind from business contacts as it could appear to compromise your integrity or influence your work-related decisions.
  4. How often does this person give you gifts? Frequency matters. Repeated gifts from the same people, however small, could appear to be an attempt to gain influence.
  5. Does it feel right? How would you feel if the details were in a newspaper article? If you are uncomfortable with the answer, then don’t accept the gift. This is commonly referred to as the “newspaper test”.

Consult with your company’s office of ethics or compliance well before the holidays to better understand the company’s gift policies in light of your specific responsibilities and which anti-corruptions laws would apply.
~The Ethicist

Send your ethical dilemmas and questions by email to erica@ericawinter.com. This column was written by Erica Winter, an International Business Ethics Consultant from Washington, D.C.

On Port Fees & Bribes – “Ask the Ethicist – Brazil Edition”

Erica WinterLeave a comment

The following was originally published in the American Society of São Paulo’s September 2014 newsletter, the Forum:
The way we handle ethical or moral dilemmas at work is generally determined by our organization’s culture. There are policies, HR, codes of conduct, and legal teams to help us figure these out. Outside the work environment, moral dilemmas become murkier and as a guest in Brazil, we sometimes ask ourselves if something is right or wrong “within” the Brazil context. And so, we launch the Forum’s new column: “Ask the Ethicist – Brazil Edition.”
To kick us off, we’ve invited some AmSoc friends to share their ethical dilemmas, one of which is asked and answered below.

Dear Ethicist,
After months of waiting, my container finally arrived in Santos and the company lawyer said we could either make a payment to expedite its customs clearance or wait potentially for months for the shipment to clear. Though I would be provided with a receipt, I worry that this could be a violation of the U.S. Foreign Corrupt Practices Act or the U.K. Bribery Act. What is the right thing to do?
Signed,
Apartamento Vazio

*****
Dear Apartamento Vazio,
You are right to be concerned. It’s tough to say for certain without knowing more details related to your situation, but a payment to expedite your container’s processing through Brazilian customs could be seen as a bribe. Even through a third party and with a receipt, it is a crime to bribe foreign government officials.
Every country criminalizes bribery of public officials. If your company does business in the U.S. or U.K., it may fall under the U.S. Foreign Corrupt Practices or U.K. Bribery Acts. These laws hold companies responsible for the actions of foreign subsidiaries and foreign employees and all other third parties such as agents, consultants, distributors, and joint venture partners.
It’s clear from your question that you believe this may be an improper payment. Either way, it is important to trust your gut. If it feels wrong, you probably shouldn’t do it. Even if it were legal to make the payment, would it be right for your container to be cleared before others who have been waiting longer?
~The Ethicist

Send your ethical dilemmas and questions by email to erica@ericawinter.com. This column was written by Erica Winter, an International Business Ethics Consultant from Washington, D.C.