Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, November 27, 1994 TAG: 9411290023
SECTION: BUSINESS PAGE: F1 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Long
The appearance of rectitude is important to companies that place a ceiling on the value of business gifts that employees are allowed to give and receive.
Norfolk Southern Corp., as an example, wrote in a December 1992 memorandum that the common interest of the corporation and its employees is "in avoiding any action which might reflect on the integrity of the business relationship."
That memo reminded employees of a standing policy that they could not "solicit, accept, offer or grant gifts, services, entertainment or favors of more than nominal value or beyond an ordinary social amenity or normal business sales promotion, advertising or publicity."
This injunction covers "any person, firm or corporation dealing with or being solicited for business from or by the corporation," according to Norfolk Southern's policy.
That statement does not define "nominal," but it is part of an overall corporate code of "ethical and legal conduct" covering a wide range of actions.
Times-World Corp., this newspaper's parent, sets a specific limit in its long "professional standards and policies" for employees who work in the news department.
"No news employee or free-lancer shall accept business-connected gifts valued at $25 or more," the policy states.
"Gifts of significant value, such as free lodging, free tickets to events, plane tickets and expensive meals or bottles of liquor are to be refused with a polite explanation that company policy prohibits their acceptance," the policy says. "Where refusal or return is impossible, gifts can be donated to charity."
General Electric Co. has "all kinds of different policies," according to spokesman Mike Allee. These policies vary according to whether the gifts are destined to or from customers, suppliers or employees of the U.S. government. "It's a little different for each relationship," Allee said.
Whether GE employees are on the giving or receiving end, he said, most of the written policies control the amount that may be spent on the gift.
Although GE allows gift exchanges among employees, it tries to encourage voluntary community service instead. GE employees have, for instance, adopted families at the Turning Point shelter for abused women and their children, and have donated food to needy families at Christmas.
First Union Corp. has no formal policy about corporate gifts to suppliers or customers, said spokesman David Scanzoni.
Gift giving and -receiving is determined by various divisions and departments according to their individual needs, Scanzoni said. Each department determines what is appropriate in its own situation.
However, he said, the company forbids any connection between issuance of a loan and the giving or receiving of a gift. Indeed, Scanzoni pointed out, any such connection would constitute a violation of federal law.
But these and similar policies haven't done much to dampen the importance of corporate gifts to the local economy.
"We get a lot of corporate accounts," said Gary Crowder of Wertz's Country Store on the Roanoke City Market.
Mostly, corporate giving is a mail-order type of business. His corporate clients state the amount they want to spend, send over their client list, and "we take care of shipping" by United Parcel Service.
Crowder recently remodeled his basement to install a room for creating and shipping gift boxes and baskets, even though corporate giving is largely a seasonal business.
Not only is corporate gift giving not declining, Crowder said, but it has increased over the past several years. That's true, he said, in both the number of gifts and in the dollar amount of each gift, which ranges widely.
The type of gift has changed over the years, however. People used to give nonfood items, he said, but food represents the hottest item today - especially locally produced foods such as jams, jellies and hams.
Corporate givers, Crowder said, tend to be real estate companies, banks, law firms and hospitals. Some send out several hundred gifts.
Elaine Vaughn, owner of Love Baskets Ltd. at Towers Shopping Center, also does a lot of work for corporate customers. She listed her primary customers as real estate companies, lawyers, certified public accounts, hospitals and "a lot of big companies."
The typical corporate gift costs about $50, Vaughn said. She creates the gift baskets and makes local deliveries. Out-of-town gifts go by UPS.
She hasn't seen any cutback in the number and size of corporate gifts - "not at all." She agreed with Crowder that people like to send food.
At a kitchen gourmet shop, as opposed to a food store, on the other hand, corporate giving is virtually unknown. Karen Hunter, owner of Provisions at Hunting Hills Plaza, has Christmas offerings from $2.50 to hundreds of dollars, but they are purchased by individuals.
Hunter said she hasn't done any work for companies giving baskets to large lists of people.
There isn't even a Christmas rush at Dominion Graphics, which specializes in promotional products such as mugs, pens, pencils and jackets. All are brand-name items imprinted with the name or logo of the giver.
The owner, Lorrie Ellis, said Dominion Graphics is busy all year but not especially at Christmastime. Her items are used for incentives and awards, she said, and they are given to customers for promotional purposes. But they are not given out as Christmas gifts.
by CNB