Bribe Or A Gift? Why Organizations Need An Ethics Policy On Gifts

Mark Snedden, a 69-year-old contractor from Munster, Indiana, and president of MARK 1 Restoration, has admitted to conspiring to bribe an Amtrak official in connection with a $58 million renovation project at Philadelphia's historic 30th Street Station.

The scheme involved lavish gifts to the official, Ajith Bhaskaran, including luxury trips to India and the Galapagos Islands, expensive steakhouse meals, a German shepherd puppy with training, and a Tourneau watch worth over $11,000. These bribes were allegedly exchanged for Bhaskaran's approval of tens of millions of dollars in additional payments to MARK 1, nearly doubling the original contract amount.

Snedden has been cooperating with the federal investigation since at least 2019 and is facing charges of conspiracy to commit federal program bribery and making a false claim. Prosecutors are seeking approximately $1.5 million in forfeiture. Three other MARK 1 employees have already pled guilty and are awaiting sentencing. Despite the scandal, the restoration project was completed in 2020 and received praise from the Preservation Alliance of Greater Philadelphia for its quality and impact. MARK 1 remains in operation and continues to highlight the project as a major achievement.

Source: https://www.yahoo.com/news/man-admits-conspiring-bribe-amtrak-195646839.html

Commentary

In the above matter, the "lavish gifts" were viewed as bribes. But not all gifts are considered bribes.

The difference between a bribe and a gift lies primarily in intent and context. A bribe is something of value given with the intention of influencing the actions or decisions of the recipient, typically in a way that benefits the giver and compromises the recipient's integrity or duties. Bribes are often secretive, unethical, and illegal, especially when they involve public officials or corporate decision-makers.

In contrast, a gift is generally given without the expectation of something in return. It is often a gesture of goodwill, appreciation, or celebration, and is typically transparent and socially acceptable when done within reasonable limits.

Organizations should have clear policies regarding gifts to protect their integrity, maintain public trust, and ensure that employees act in the best interests of the organization rather than being swayed by personal gain.

Without such policies, even well-intentioned gifts can create the appearance of impropriety or lead to conflicts of interest. A robust gift policy helps employees navigate complex situations and reinforces a culture of ethical behavior and accountability.

A well-crafted gift policy should define what constitutes a gift and it should set clear thresholds for acceptable gift values, specify the types of gifts that are prohibited (such as cash or lavish entertainment), and outline procedures for reporting and approving gifts.

The policy should also address gifts given during sensitive periods, such as contract negotiations or audits, and provide guidance on how to manage gifts from international partners, where cultural norms may differ.

Training and regular communication about the policy are essential to ensure understanding and compliance across the organization.

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