The gift equation: you, the giver and the public

One of the critical ways in which the public sector differs from the private sector is in the rules regarding the receipt of gifts. In the private sector, it is common practice to send clients, prospects, and those who refer business your way, a token of your appreciation for doing business with your company. This common private sector practice, however, can spell trouble in the public sector. Most state laws prohibit receiving gifts in exchange for official action (we call that bribery), but ethical dilemmas extend to casual gifts that are not in exchange for official action.

Take the example of a company that sends a box of oranges to the director of a state agency at Christmas with a note that says, “Thank you for all your hard work for the people of our state.” Suppose this company has not done business with this agency. Is it unethical for the agency director to accept oranges? Here are some questions to consider if you were the agency director:

1. Does state law allow the gift to be received? In Idaho, state law the receipt of incidental gifts allows up to $ 50.00 in value. Oranges are unlikely to cost more than $ 50.00, so you conclude that state law does not prohibit you from accepting them.

2. Does your particular agency have rules about receiving gifts? Some agencies go beyond the statute’s minimum limitations and prohibit the receipt of gifts. Suppose that in this case there is no specific agency rule.

If your state law allows it and there are no specific agency rules prohibiting it, you can assume that it is ethical to accept oranges, and it would be technically correct. However, here are some other things to consider, specifically, the “gift equation.”

First, remember that you only control one third of the “gift equation”: you know what the gift means to you. You are assured that the receipt of this gift will not affect your decision-making in your official capacity. After all, who would be “bought” for a box of oranges, right? What he does not control, however, is the other two-thirds of the “gift equation”: what it meant to give the gift to the donor and how it is viewed by the public. As far as you know, the giver of the box of oranges is sitting at the counter of a restaurant in your community and telling his business partners how, “the next time a contract comes up with your agency, he will be ‘in'” because now it is in your good graces. Also, you don’t know what the gift receipt will look like to your community audience. What might be “technically legal” may seem inappropriate to the public. The appearance of irregularity is a fundamental part of ethics in the public sector. It is a constant reminder that public sector officials are held to a higher standard.

The “gift equation” reminds us that we only control one third of the gift acceptance situation in the public sector – what the gift means to us. What the donor thinks they are getting and how the public sees it is beyond our control.