Sweeteners, Bribes, and Lagniappes

I got into a theoretical discussion about the "little extras" that sellers give to buyers, the rationale behind the tactic, and whether it is moral or effective to do so. The present not is jotting down some points - I don't expect there's a meaningful structure or direction:

Basic Classification

There is a distinction to be made based on when and how the bonus is given to the buyer.

If the gift is offered prior to settling the exchange or agreeing on terms, it can be regarded as a sweetener - as in "sweetening the deal" to get the buyer to accept it. The sweetener is clearly a negotiating tactic, geared toward making the buyer more inclined to accept the deal that is offered.

A bribe is also given prior to the exchange, but the difference is that the sweetener is subject to open discussion and is not granted if the negotiations are unsuccessful. A bribe is granted without overt reference to the deal - and as such is meant to covertly ingratiate the buyer to the seller, to make the buyer feel he "owes" the seller something (agreement to the deal), even if the seller ostensibly denies this (which is expected).

A lagniappe is differentiated from both bribe and sweetener in that it is granted to the buyer after a deal has been accepted, and the buyer had no expectation that he would receive anything "extra" at the time the deal was struck.

Ethical Considerations

The lagniappe is likely the most ethically sound of the three. Because the buyer was unaware of it during the negotiation process, it cannot reasonably be said to have corrupted his objectivity in the negotiations. Even if the buyer expected the lagniappe for some reason, such as having heard from others that the seller is in the habit of giving them, it is the buyer's own expectations that have corrupted him, not anything done by the seller - which likely falls into the category of "foolish" rather than "unethical" behavior.

The sweetener also seems ethically acceptable. Because it is married to the negotiation, the buyer has the ability to consider it, as well as the ability to insist that the seller set the sweetener aside and resume negotiations for the merchandise that is the primary objective. That is, the buyer consciously and purposefully allows the inclusion of the sweetener, no differently that including or excluding any item from the exchange.

The bribe is clearly unacceptable, as a one-sided tactic that is intended to ingratiate the buyer to the seller and apply psychological pressure to accept a deal that might have otherwise been acceptable.

Naturally, this last bit was subject to some conjecture, but in the discussion, those who felt that a gift before a deal was acceptable were unable to provide a satisfactory rationale. "Just being nice," "It's a custom," and "It's a thank-you for taking the time to negotiate, even if a deal is not struck" seem disingenuous and just-because.

I can go so far as to say that if it isn't the seller's intent to skew negotiations in his favor, than it is not intentionally unethical behavior - but because we can never really know a person's intentions, and all will claim the most innocent of motives if asked, I don't expect that can be objectively substantiated - and the act of offering a bribe is inherently unethical, regardless of the purported intent.

Fiduciary Responsibility

All three forms of gift seem a bit more dubious when the situation is one in which the buyer is negotiating a purchase for his employer, rather than a personal purchase.

Where the negotiator seeks to obtain a lagniappe, sweetener, or bribe for himself, in the process of a business negotiation, it's clearly in violation of ethics. Even if he gains the most beneficial deal for his employer among the options available, it smells odd.

For the lagniappe, specifically, intent is important. If a vendor gives an unexpected personal gift to the negotiator after a deal is struck, it's likely not an ethical problem (though it may have the appearance of having been so) - but if the negotiator expected the gift, it takes on more of the quality of a bribe.

Where the negotiator gains a lagniappe or sweetener for his employer (he does not keep it for himself), I don't see an ethical concern. Because the negotiator gained something for his employer rather than for himself, he has not violated his fiduciary responsibility.

In terms of bribery, it seems to me that a bribe that is offered that benefits the employer is less likely to corrupt the judgment of the negotiator than a bribe that is given for the negotiator's personal benefit. The psychological "hook" of the bribe is reciprocation - because you have done something for me, I feel that must do something for you. The hook isn't set by doing something for someone else (because I did something for your company, you are personally responsible for reciprocating.) So while I'm still apprehensive, I am less so in this specific situation.

Lessons for the Seller

The consideration so far is focused on the motivation of the buyer, as was the discussion, but it has some implications for the seller.

Fundamentally, the question of ethics pertains to motivations - and while we can never truly understand the motivation of another person, we are (or should be) entirely clear on our own. We know whether our intent was to show gratitude to a person with whom we do business, or to use overt methods to make a deal seem more appealing, or to subvert the judgment of the other party. We know whether our intentions were ethically sound.

However, we must consider the perspective and situation of the buyer: if our actions have the scent of subversion, or if the buyer will suffer from the appearance that they were involved in an unethical exchange, we have likely damaged both their reputation and our own in the process, and poisoned the relationship.

As such, I would conclude for the time that:

• A lagniappe is always safe when given to a retail buyer (purchasing for their own consumption) and is safe when we sell to a commercial buyer (who purchases for their employer). The only time it seems shady is if the lagniappe is given to a commercial buyer that benefits the person rather than their firm - it could have the appearance of an ethical violation, not that it actually is.
• A sweetener is also safe when dealing with the retail buyer. It is also safe when dealing with a commercial buyer if the sweetener benefits the employer rather than the buyer. However, if the sweetener benefits the commercial buyer as an individual rather than his employer, it is unsafe.
• A bribe is unsafe when dealing with a retail buyer, and unsafe when dealing with a commercial buyer if the bribe benefits the buyer rather than their employer. Where the bribe benefits the employer but not the buyer, it is not as questionable, though I can't go so far as to say it is completely safe.