Reading: Gifts and Bribes

Gift-giving in business is commonplace and contentious at the same time. Business gifts are usually seen as an advertising, sales promotion, and marketing-communication medium.^[1] Such gifting is usually practiced for the following reasons:

• In appreciation for past client relationships, placing a new order, referrals to other clients, etc.

• In the hopes of creating a positive first impression that might help to establish an initial business relationship

• As a quid pro quo—returning a favour or expecting a favour in return for something^[2]

In global marketing, it becomes one of the most challenging ethical issues, since cultural norms in other countries can be at odds with standard ethical practices in Canada. For this reason, gifts and bribes warrant a deeper discussion, especially with regard to B2B marketing.

In considering appropriate business gifts, it is helpful to think about the content of the gift, the context of the gift, and the culture in which it will be received.

Case Study 1: Microsoft’s “Gift” to Bloggers

When Microsoft introduced its Vista operating system, the launch included a noteworthy promotion. During the 2006 Christmas season, Microsoft sent out ninety Acer Ferrari laptops, loaded with Windows Vista, to influential bloggers.

The lowest model was worth around $2,000. Michael Arrington, editor of TechCrunch, shared the message that accompanied his gift:

“This would be a review machine, so I’d love to hear your opinion on the machine and OS… you are welcome to send the machine back to us after you are done… or you can hold on to it for as long as you’d like.” ^[3]

Critics noted that the laptops:

• Diminished trust in reviewers who had accepted them

• Created an unrealistic review environment, since real users would not experience Vista on high-end tuned machines

• Lacked disclosure, since some bloggers did not publicly state they had received the laptops^[4]

This case is still discussed as a cautionary tale of how expensive “gifts” can quickly be perceived as bribes.

Case Study 2: Influencer Marketing, AI-Generated Content, and Disclosure

Fast forward to today: the ethics of gifting have extended into AI-powered influencer marketing. Brands now send free products—or even pay influencers—while also leveraging AI-generated product reviews and endorsements. This blurs the line between genuine opinion and paid promotion.

For example, a 2023 investigation revealed that some Canadian consumers were exposed to “reviews” and endorsements created with generative AI, often without disclosure that no human reviewer had actually tested the product.^[5]

This raises similar issues to Microsoft’s blogger campaign but with amplified risks:

• AI can mass-produce positive “gifted” reviews, making it harder for consumers to detect bias.

• Influencers may receive free products or cash, but fail to disclose their AI-enhanced endorsements.

• Regulators such as the U.S. Federal Trade Commission (FTC) have issued new guidelines in 2023 requiring clear disclosures of both gifted products and the use of AI in creating promotional content.^[6]

Three Dimensions of Evaluating Gifts

From Microsoft’s laptops to AI-influenced endorsements, we can still evaluate gifts through the same three dimensions:

1. Content – The value and nature of the gift. A $2,000 laptop or a paid AI-generated video endorsement is far more problematic than a small promotional item.

2. Context – The intent behind the gift. Was it meant to inform, or to unduly influence behaviour?

3. Culture – The expectations of the audience. In blogging and social media, transparency and authenticity are paramount, making undisclosed gifts or AI-driven content especially controversial.

Creation note: This content was updated with the assistance of ChatGPT, a language model developed by OpenAI, and was subsequently reviewed and edited by the author for clarity and accuracy.