0

How to combat 'kickbacks': Do nothing and let pot boil

By Scott Farrington

Let me tread very carefully here so as not to offend anyone; any company, government or culture etc....

The Wikipedia definition of a ‘Kickback’ is a form of negotiated bribery, in which a commission is paid to the bribe-taker as a ‘quid pro quo’ for services rendered.Generally speaking, the remuneration (money, goods, or services handed over) is negotiated ahead of time.

The kickback varies from other kinds of bribes in that there is implied collusion between agents of the two parties, rather than one party extorting the bribe from the other. The purpose of the kickback is usually to encourage the other party to cooperate in the scheme.

The term ‘kickback’ comes from colloquial English language, and describes the way a recipient of illegal gains “kicks back” a portion of it to another person for that person’s assistance in obtaining it.

This is nothing new, and is a subject I have heard from quite a few different circles. It does not matter the industry, location, country or the culture.

Kickbacks occur whether you like it or not. Assuming you and your company are upstanding, and do not entertain such actions, the question is: What do you do? when this occurs with a party you are competing against for business?

The answer is: NOTHING! What? I can hear it now.

Let me first remind everyone that the world is a lot smaller today, and this sort of business practice is frowned upon. In the general public’s eye, it is very much disliked. If discovered, news travels at the speed of light.

Why would I suggest to do nothing? Because unless you have concrete evidence that a bribe has occurred, don’t even think about bringing this to the surface. If you do have concrete, factual evidence (which is always difficult to come by), then a conversation with the owner, director, president of a business or a member of government might warrant consideration. But that is a decision you will have to make on your own.

If you find yourself conducting negotiations, and a kickback is a condition for doing business, simply either excuse yourself from the opportunity or state that you are not able to conduct business in this manner, but will still be happy to submit either your quote or proposal.

However, I suggest leaving it alone, because after quite a few years, and walking in many circles locally and abroad, I have found that though I may have lost business to such practices, inevitably the impurities surface at some stage. It is as if someone has put a pot of business on the stove top, turned on the burner and, after a while, all of the ‘impurities’ ( there are other nouns to use here) rise to the surface and are then scooped off and discarded.

I have witnessed many department heads, purchasing agents, directors all of a sudden no longer working at the same place of business. I have found that, in time, the door that was closed to me due to ‘kickbacks’ has reopened even wider than before.

Why talk about this now? Because in today’s business world and economic times, persons and companies are struggling more than ever, and this lends itself to a bribery breeding ground.

Stay the course, conduct business upfront and, in the end, the door will open wider for you to walk through and conduct business.

On the other hand, a gift or a present is an object given without the expectation of payment. This normally occurs after conducting business, and is usually something small and insignificant. A gift is not always necessary. Sometimes just a simple phone call or hand written note expressing an appreciation of business will suffice. This is a more recommended practice after exchanging business with any company, government or person.

So, in today’s business world, how do you compete against ‘kickbacks? Do nothing and let the pot on the business stove top do the boiling for you.

Always say thank you for any business you may exchange, as this gift will stay around a lot longer and so will you.

All of these marketing strategies are certain to keep your business on top during these challenging economic times. Have a productive and profitable week.

• NB: Scott Farrington is president of Suntee Embroidme, a promotional and marketing company specialising in uniforms, embroidery, silk screen printing and promotional products. Established over 27 years ago, Suntee Embroidme has assisted local businesses from various industries in marketing themselves. Readers can contact Mr Farrington at Suntee Embroidme on East Shirley Street or, by e-mail at scott@sun-tee.com or by telephone at 242-393-3104.

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment