Gift or Bribe?

In business, the line between a gift and a bribe can be surprisingly thin. A gift, at its core, is given with no expectation of return as an expression of goodwill, gratitude, or relationship-building. A bribe, on the other hand, carries intent. It seeks reciprocity: a decision swayed, a favor granted, or influence secured.

The distinction matters. Different cultures view gift-giving in unique ways. In Japan, gift exchanges are essential to building trust. In the Middle East, hospitality often comes with elaborate offerings. In the U.S., however, a lavish “gift” to a decision-maker can quickly raise eyebrows. The IRS tax code is explicit: gifts are taxable above certain thresholds, and anything that looks like payment for influence may be treated as a bribe.

So when does a gift cross the line? Context and intent are everything. A small token of appreciation after a deal closes is a gift. A luxury vacation dangled before a contract is signed? That’s edging into bribe territory.

For business leaders, the test is simple: if you wouldn’t be comfortable explaining the gesture to your board or to the press, it may not be a gift at all.

John Bradley "JJ" Jackson

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