Business marketing and the ethics of gift giving

This paper focuses on the common though ethically problematic practice of suppliers providing gifts and other benefits to buyers in a business-to-business context. It is argued that contrary to the claim that the boundary between acceptable and unacceptable practices is blurred when there is a focus on developing mutually beneficial, long-term relationships between suppliers and their business customers, there is a straightforward decision making procedure that can be applied. Central to this decision making procedure is the concept of a conflict of interest. While all organisations have very good reasons to address the issue of gifts and benefits, in a relationship marketing context there is even more reason to do so.