Gifts and Entertainment

In many cultures, gifts and entertainment are an integral part of doing business. When conducting Baxter's business, it is important to know when a gift is an expression of friendship or goodwill and when the giver has another motive.

 

A conflict of interest may arise from any gift or entertainment offered by:

• A competitor.
• Someone whose primary purpose is to obtain business from Baxter.
• Someone trying to influence your decision-making objectivity.

 

Giving or receiving gifts or entertainment must relate to Baxter's legitimate business. Generally exchanging modest gifts, entertainment, or other business courtesies is permissible if:

• The reason for the gift or entertainment is appropriate.
• The gift or entertainment helps improve business, political, or community relationships.

 

Before deciding whether to accept a gift or entertainment, ask yourself:

• Is the gift or entertainment appropriate to the circumstance?
• Is the gift or entertainment appropriate to my business relationship with the giver?
• How would my acceptance of this gift or entertainment look to other Baxter employees?
• Is it possible to share the gift with my co-workers?
• How frequently have I received a gift from or been entertained by the same person or organization?

Before deciding to give a gift or to provide entertainment, ask yourself:

• Is the gift or entertainment appropriate to the circumstance?
• Is the gift or entertainment appropriate to my business relationship with the receiver?
• How would the receiver's acceptance of this gift or entertainment look to his/her co-workers?
• How frequently has the receiver received a gift from or been entertained by Baxter?
  

Many business units and country organizations have written policies on gifts and entertainment. Always consult policies in both the giver's and the receiver's home country to understand the local laws and requirements. If you have questions, ask your supervisor; your business unit lawyer, auditor, or controller; or members of your Regional Business Practice Committee.

Not every gift is wrapped with paper and ribbon. View unusual gifts cautiously, including: 

• Gratuitous services
• Expense reimbursements  
• Loans
• Articles of significant value
• Discounts
• Personal use of equipment or facilities 

The following situations are always inappropriate and are expressly prohibited:

• Soliciting a gift, entertainment, or preferred treatment for personal benefit.
• Offering or accepting a gift, entertainment, or preferred treatment intended to influence a purchasing decision.
• Accepting a gift, entertainment, or preferred treatment if you are involved in a current purchasing or contracting decision.
• Any gift of currency, unless it is allowed by local policy and approved by the appropriate business unit supervisor.
• Accepting an opportunity to purchase products, services, or a financial interest under terms not available to your co-workers.

Employees who are given or offered a gift, entertainment, or preferred treatment they believe is inappropriate must refuse if possible and report the event promptly to their supervisor or business unit controller. If there is no opportunity to refuse the gift, it should be returned if possible with an explanation of Baxter's policy on gifts. If returning it is not feasible, or would offend the giver, donate it to a charity or distribute it equitably within your organization.

In some countries, it is customary and lawful for executives of companies doing business with each other to give or exchange gifts, some of which can be of great value. Baxter follows these customs when appropriate, but only according to local laws and business unit procedures. These gifts become Baxter property and must be properly documented and displayed.