Ethics Policies and Gratuity Acceptance by Purchasers

Most purchasing professionals generally agree that the acceptance of significant gratuities is inappropriate and should be discouraged. Managers need effective methods of monitoring and controlling such activities. This study examined the impact of certain individual and organizationally controlled variables on the acceptance of gratuities. Consequently, the study was able to identify some approaches that can be used by management for control purposes. The results indicate that formal, written policies do have a significant impact on reducing the acceptance of gratuities. However, if these policies are not also applied to sales personnel in the same organization, their impact may be diminished significantly, if not lost altogether. The engagement of upper level management in questionable activities was found to be positively related to the acceptance of gratuities by buyers and purchasing supervisors. Ironically, while it seems logical that input from purchasing personnel in the development of purchasing ethics policies should reduce the propensity to accept gratuities by department personnel, the study produced no evidence that supported this conclusion.