Importance of Supplier Gift Policy on Purchasing

Business ethics is a factor that welcomes you in every aspect of life. This practice, which sets certain limits in business life, prevents unfair competition or bribery. This is also true for purchasing.

Supplier gift policy is one of the procurement tips and an important part of purchasing. The regulation of relations with the suppliers needs to be taken into consideration. A supplier gift policy that is part of business ethics may be defined as an anti-gift policy or it should not affect business relationship and performance due to the drawing of certain limits.

It is based on the absence of any benefits and gifts that may or may not have economic value that may affect or hinder the impartiality and decision-making.

At times, companies do not consider these policies through superficial blind work or by outlining small texts in the contract. However, having a supplier gift policy will put you one step ahead. It will help prevent emotional borrowing and enable you to make better decisions.

The most basic point is: a company’s code of conduct - the commitment of all employees, organizations and transactions between parties to all people and organizations - impartially. This sort of reputation-building behavior will also prove that you’re pursuing an honest purchasing policy.

All employees, not just the business or company, must comply with this policy or business ethics section. Things to watch out for during this compliance:

• Whether it’s a pen, a watch, a T-shirt, a trophy or a bag, gifts should not be accepted.

• This gift prevention policy should not include entertaining activities such as food, beverages, meals or sports provided by the seller or potential seller or supplier.

• In addition, the gift policy must also be fully defined in the supplier gift policy.

• There are also policies for which a monetary upper limit is set for gifts. Although even the smallest gift should not be accepted, companies sometimes ignore small gifts. For all negotiations based on a limit of 100 Turkish lira, the fun, food, activity or gift must not exceed this limit. The boundaries of the activities are defined and categorized.

• Moreover, supplier policies must be disclosed to the suppliers. It should also be included in the supplier manual.

• In case of exceptions, this should again be included in the supplier gift policy.

• Courtesy should also be exercised in the current policy for behaviors that do not benefit from product discounts or other benefits.

You should consider these conditions for fair conduct of business relationships and these policies that maximize business interests. The business interests and emotional borrowing should be prioritized before these gift giving attempts that you encounter almost every day.

It is also important to overcome the persuasive tricks of these suppliers that try to take a step ahead in competition. There may also be exceptional circumstances, as stated:

• All gifts regarded as members of the public on seminars and at trade events were exempted from these policies. Because in such events, all members are provided equal terms.

• Among these events, there are acceptance conditions such as food and drinks.

• Thank you notes or forms, certificates or written/verbal thanks.

• Exceptional events, seminars, meals or activities are also considered to include entertainment elements.