December 5th, 2009
Tis the Season! Where are the gifts from vendors??
Best Buy Ethics, by Kathleen Edmond.This time every year we send out reminders to our employees that we do not accept gifts from vendors. At the same time we send letters to our vendors asking that they don’t send our employees any gifts. I usually get questions from employees, and even some vendors, about why we we have this policy. The reason is both simple and complex. The simple part is that we choose vendors based on the quality and value of the product / service that ultimately is the best for our customers. Period. We never want there to be any thought or question that our decisions are influenced by personal gain on the part of the an employee – from the newest buyer to our most senior leaders.
The more complex reason is that fraud and corruption begin small and at the edges of a business relationship. Very seldom do kickbacks and bribes start with huge exchanges of money or expensive product. More often it starts with accepting something small here and there that creates a sense of entitlement, which then becomes an expectation. It’s not a culture we want – and it is inconsistent with our promise to customers, vendors , employees and shareholders – that they can trust us to act with integrity. . . . . I guess it is not all that complex after all.
What are your thoughts?
I have seen it happen too many times. Holiday gifts for business given turn out later to become expectations which continue to grow long after the season is over. I like the idea that we should do business with companies that deliever the best service or product at the best price period. When employees begin to benifet from bonus points, gifts, and special treatment as a result of doing business with others it leads to a cost that is past down to the company somewhere else. Great article, great advice, keep up the good work.
Best Buy has a good gift policy. And it sounds like BB has sound processes and practices around its execution. One of the areas where complexity often comes in, and this may be what Kathleen was thinking of in saying the topic was both simple and complex, is in events and activities sponsored by vendors. When a vendor invites multiple clients to an event where networking and best practice sharing will occur, but where an element of entertainment is involved, what then? Is there a greater good argument? Rejecting a pen or a watch feels straightforward compared to rejecting a sports or cultural event where vendor-agnostic knowledge will be attained.