Fineprint ISSUE 96 Autumn 2025 The business of gifting Have a policy for accepting gifts Many of us are aware of the strict policies that employees of public sector entities, large corporates and charitable services must follow when offered a gift by a client or customer. They have the responsibility of fairness and transparency to ensure continued public confidence in their organisations. In much of the private sector, however, accepting a gift from a client can be a somewhat grey area, or may not be addressed with a company policy. We provide some insights into the pitfalls of accepting client gifts and what to consider when preparing a gifting policy for your business. What is a gift? A gift is something given willingly to someone else – without payment. A bit like a birthday present but in a business sense. The gift could be money, items or an act of service. Conflicts of interest arising from business gifts are not always immediately apparent, as gifts are a one-way transaction. They can be a form of thanks, but accepting them from clients or customers can lead to potential ethical problems, legal risks or expectations of future behaviour. Perceptions You may have received a Christmas gift basket, bottle of wine or box of chocolates from a client as acknowledgement for your hard work over the year or for a project. Or your business may have a long-standing relationship with a client who offers more high-value items such as seats to a rugby game or a weekend away at a client’s holiday home. Although a gift may not cloud your judgement, what might your competitors, market participants, regulators or prospects think? Gifts can be perceived differently in many circumstances and gifting can sometimes be misconstrued, resulting in a market perception of bias in the way you conduct business. Whether that perception is accurate is not the point, once an idea is in mind it can be difficult to ease any concerns long-term. Legal Legal pitfalls in accepting a client’s gift could lead to serious consequences, and action may be taken in response. Some issues to be aware of include: + Bribery + Misconduct, and/or + Breach of fiduciary duty. Policy A gift acceptance policy can be tailored for the specific nature of your business. It should provide guidance for a range of situations and clearly define what is considered a gift, any value thresholds that apply and set out a framework for reporting any gifts. Reporting can encourage openness and accountability for your team. The policy could advise on behaviour around declining gifts that meet certain criteria, such as those with a high value that could be seen as a bribe. Accepting gifts can sometimes be unavoidable because it is culturally inappropriate to do so, or it might weaken the relationship. Having a clear policy gives employees an ability to navigate tricky situations with professionalism, integrity and transparency – and not to hurt the feelings of the person making the gift. Building and maintaining strong relationships with your clients is the strength of your business. When a client offers a gift, it’s often their way to show their appreciation for your hard work and dedication. While accepting a gift can foster goodwill (and it can be difficult to refuse), it’s important for businesses to prioritise clarity and fairness through clear policies. If you need help with drafting a gift acceptance policy, please don’t hesitate to contact us. + Members of NZ LAW Limited Allen Needham & Co Ltd Morrinsville Apogee Legal Whakatāne Argyle Welsh Finnigan Limited Ashburton & Rolleston Aspiring Law Wānaka, Arrowtown, Christchurch & Dunedin Atkinson Crehan Law Richmond, Nelson & Motueka Barden & Co Waihi Berry & Co Oamaru, Queenstown & Invercargill BMC Lawyers Paraparaumu, Porirua & Levin Boyle Mathieson Henderson, Auckland Connect Legal Taranaki New Plymouth Corcoran French Christchurch, Kaiapoi & Greymouth Client Legal Solutions Nelson Cruickshank Pryde Invercargill, Queenstown, Gore & Christchurch CS Law Levin Daniel Overton & Goulding Onehunga, Auckland & Pukekohe DG Law Limited Mt Wellington, Auckland DK Law Kingsland, Auckland Dorrington Poole Dannevirke Downie Stewart Dunedin Edmonds Judd Te Awamutu, Ōtorohanga & Cambridge Edmonds Marshall Matamata Freebairn & Hehir Lawyers Palmerston North Gawith Burridge Masterton & Martinborough Gifford Devine Hastings, Havelock North & Waipawa Gillespie Young Watson Lower Hutt, Upper Hutt & Wellington Greg Kelly Trust Law Ltd Wellington Horsley Christie Whanganui Paul Hunter, Barrister Auckland Innes Dean Lawyers Palmerston North & Pahiatua JR Legal Tauranga James & Wells Intellectual Property Hamilton, Auckland, Tauranga, Christchurch, Brisbane & Melbourne Kaimai Law Tauranga & Omokoroa Lamb Bain Laubscher Limited Te Kūiti Law North Limited Kerikeri Le Pine & Co Taupō, Tūrangi & Putāruru Lowndes Jordan Auckland Mactodd Queenstown, Wānaka & Cromwell McCaw Lewis Hamilton & Te Kūiti McIntosh & Signal Lawyers Feilding Malley & Co Christchurch Mike Lucas Law Manurewa, Auckland Norris Ward McKinnon Hamilton Parry Field Lawyers Riccarton, Christchurch, Rolleston & Hokitika PJ Magee Lawyer Whangārei Price Baker Berridge Henderson, Auckland Purnell Lawyers Thames, Coromandel & Whitianga Brian Stewart, Barrister Auckland Rainey Collins Lawyers Wellington Advocate Legal Limited Tauranga Rennie Cox Auckland & Whitianga RSM Law Limited Timaru & Waimate Sainsbury Logan & Williams Napier Sandford Wall Rotorua Sheddan Pritchard Law Gore Simpson Western Takapuna, Auckland Simpson Western North Silverdale Sumpter Moore Balclutha, Milton & Dunedin Thomson Wilson Whangārei Wain & Naysmith Limited Blenheim Welsh McCarthy Parker Hāwera & Stratford Wilkinson Rodgers Dunedin Woodward Chrisp Limited Gisborne & Wairoa NZ LAW is a national network of quality, successful and innovative law firms. It has 63 member firms in more than 100 locations. Membership of NZ LAW enables member firms to access one another’s skills, information and ideas whilst maintaining client confidentiality. 5
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