Which issue can arise from improper handling of corporate gifts?

Improper handling of corporate gifts can lead to potential involvement in bribery cases because gifts may create an appearance of favoritism or obligation, which can compromise the integrity of business transactions. When gifts are given in a way that could influence decision-making or secure favorable treatment, they can be perceived as bribes. This blurs the line between ethical business practices and corrupt behavior, potentially leading to legal repercussions and damaging a company’s reputation.

In contrast, the other options highlight positive outcomes that are unlikely to result from improper handling of gifts. Increased employee morale and strengthened supplier relationships are potential benefits of correctly managing corporate gifting within an appropriate ethical framework. Enhanced regulatory compliance would also stem from following established guidelines regarding gifts and not from negligence or misconduct in handling them. Thus, recognizing the risks associated with mishandling corporate gifts is crucial for maintaining ethical standards in business.