Lesson 3.7
Gifts, Kickbacks, Conflicts of Interest & Secret Commissions
Estimated time: 8 minutes
Not every unethical payment looks like stealing cash from a till.
Sometimes someone pays you.
Scenario — Supplier Choice
You are responsible for recommending a supplier.
Supplier A provides the best price and quality.
Supplier B privately offers you ₦50,000 if you persuade your company to buy from them.
If you choose Supplier B because of the personal payment, whose interest are you serving?
Your own.
That is a conflict between your personal benefit and the responsibility entrusted to you.
Kickbacks
A kickback occurs when someone gives an improper personal benefit in exchange for influencing a business decision.
It may be:
- cash
- gifts
- free products
- travel
- commissions
- favors
- discounts
- another personal benefit
The United Nations Office on Drugs and Crime (UNODC) identifies commercial bribery, kickbacks, improper gifts, commissions, embezzlement and favoritism among forms of private-sector corruption and notes that conflicts arise when private interests interfere with duties owed to an organization.
Are All Gifts Wrong?
Not necessarily.
A workplace may allow small customary gifts within clear limits.
The problem becomes stronger when a gift:
- is secret
- influences a decision
- creates an obligation
- is unusually valuable
- comes from someone seeking favorable treatment
- violates workplace policy
When uncertain:
Disclose it and ask.
Conflict of Interest
A conflict does not automatically mean someone has done something corrupt.
It means a personal interest could affect—or appear to affect—professional judgment.
Examples:
- selecting a relative’s company without disclosing the relationship
- hiring friends outside the normal process
- choosing a supplier because you own part of the supplier
- steering customers to your private business
- accepting benefits from someone whose work you evaluate
More Workplace Examples
Real Estate — Secret Commission
An agent recommends a property to a client and quietly accepts a payment from the seller without telling the client or the agency.
Undisclosed commissions can influence advice the client is relying on.
BETTER RESPONSE
School — Uniform Supplier
A school administrator chooses a relative’s company to supply uniforms and does not disclose the relationship.
The supplier may be good. The problem is the hidden conflict.
BETTER RESPONSE
Remember
A conflict should be disclosed—not hidden until somebody discovers it.