The festive season is traditionally associated with giving, and it is unsurprising that this culture of generosity often extends into the corporate sphere. Yet, unlike the exchanges that occur naturally within families or among friends, gifts in a business context are subject to legal and ethical constraints. Seasonal goodwill does not displace the duties imposed by law.
At the heart of these rules lies a simple principle: a genuine gift reflects appreciation, courtesy, or the wish to maintain professional goodwill. It is a unilateral gesture, freely given without expectation of advantage. It must not be used as a vehicle for inducement, influence, or preferential treatment. A present exchanged in December is no less capable of constituting a bribe than one given at any other time of year.
The legal framework
The Bribery Act 2010 provides the central statutory foundation. It prohibits offering or accepting financial or other advantages in connection with business activities where the intent or effect is improper. Gifts of “money or money’s worth” may fall within the scope of the Act if they are used to secure an illegitimate benefit or to distort commercial judgement.
Reasonableness and proportionality
Corporate hospitality exists on a spectrum. Modest tokens – a bottle of wine, a small box of chocolates, a book selected with care – generally fall within acceptable boundaries. These items are recognisable as gestures rather than inducements. By contrast, high-value items such as luxury watches, premium sporting hospitality, or holidays are far more likely to raise suspicion.
The overarching test is one of reasonableness and proportionality. If a gift appears so generous that it might compromise independence of judgement, caution is required.
Intent plays a central role in determining whether a gift is legitimate or unlawful. A long-standing commercial partner marking a milestone with a modest present is unlikely to arouse concern. However, where a valuable benefit is offered during contract negotiations or just before a key decision is required, the risk of it being construed as an inducement is significant.
Even an unsuspecting recipient may be exposed to criminal liability if the circumstances suggest that the gift was intended to influence a commercial outcome. A seemingly harmless gesture may be scrutinised by regulators or the police if followed closely by a favourable deal.
Public sector risks
While bribery risks exist across all industries, the consequences are often more severe where public officials are involved. Arms procurement, major infrastructure projects and planning decisions have historically produced cases of large-scale bribery, sometimes with international implications. Public servants – whether in government, defence, or local administration – are custodians of public resources and reputation. Any attempt to influence them improperly carries significant legal and ethical repercussions.
Organisational responsibility
A common explanation offered by individuals accused of improper gifting is that they were unaware their conduct breached any rules. This highlights the importance of robust corporate governance. Businesses are often vicariously liable for the actions of their employees, and directors can face prosecution for failures of oversight.
Effective policies should clearly outline permissible and impermissible gifts, specify financial thresholds, and require transparent reporting. Senior management oversight is essential. Under the Bribery Act, “consent or connivance” by a senior officer may itself constitute an offence, even if the inappropriate gift was physically given by a junior employee.
Third-party and charitable giving
Gifts or hospitality provided to third parties connected to a commercial counterparty may still be unlawful. Similarly, while genuine charitable donations are legitimate, contributions to organisations linked to a decision-maker can raise bribery concerns. Importantly, the Bribery Act applies to conduct both within and outside the UK, and captures both active and passive bribery.
Best practice during the festive season
Navigating these issues can be challenging. Transparency, accountability, integrity and proportionality should underpin all corporate gifting decisions. Any gesture – however well-intentioned – must withstand scrutiny.
Finally, there is also a practical, reputational dimension. A company that attempts to “sweeten” negotiations may find the recipient offended rather than flattered. In some cases, the recipient may feel obliged to report the matter to regulators or even the police in order to protect their own position. In such circumstances, Father Christmas may not be the only visitor the donor should expect over the festive season!
