Growing up in Virginia just outside of Washington D.C., my family was in the restaurant business. My grandfather was the president of the company, and his four children and their spouses were the managers of our several restaurants.
It was a tough business, and we worked hard but we were also successful and had a lot of fun as a family. Our restaurants were open 363 days year, only closed on Christmas and Thanksgiving, but we did close early one day each Christmas season to have a party to thank our many employees.
What I remember was that the family did all the work so that the employees were able to relax and enjoy themselves.
A big perk for our business was that all the food was provided free of charge by our several food distributors. Just as we took a day to celebrate and thank our employees, our distributors wanted to show us how grateful they were for our business by providing the food. While I have always known that many businesses have parties to thank employees and customers, I did not know how extensive corporate gift giving was for major companies, or that this tradition went back much further than I would have expected.
The concept of gift giving is as old as time as it was a way to show respect and the desire for a working relationship. Ancient Egyptians sent exotic gifts to trading partners as a sign of appreciation. Some of these gifts included gold and silver or even better were exotic animals from Africa. As modern Europe was forming, and nations were beginning to solidify themselves as the current nations we now know, their kings exchanged gifts with one another. While these gifts were meant to reinforce connections, they also were a way to show off wealth.
Giving exotic gifts also showed kings’ power and reach around the globe: rugs from Persia, silks from China or again exotic animals. Norway’s King Haakon IV once gave King Henry III a polar bear that he kept in the Tower of London. To top it, King Louis IX of France then gave Henry an elephant. The two animals both lived in the tower, both probably fighting over the thermostat.
In America, when Thomas Jefferson sent Lewis and Clark out to explore the Louisiana Territory, they were loaded down with gifts to give to new tribes they encountered. These gifts were not so much for trading, but to show friendship with the Natives. Those gifts included knives, pots, and mirrors. The most important gifts they brought were peace medals with the likeness of the president and were meant to show good will.
As America began to industrialize in the 19th century, businesses realized the importance of gift giving as a sign of appreciation to customers, clients, vendors and employees. Another important part of gift giving was to enhance loyalty and promote business. As markets grew, holding on to clients became more important and allowed for branding through gift giving. If your gift had your corporate logo then it also served as advertising.
As a kid, the calendar we had on our fridge was given to us each year by our real estate agent who wanted us to keep her in mind if we ever considered selling. There were similar practices by companies who sold alcohol to pubs. Their gifts were often things like decanters or bar tools that their clients needed but also kept the suppliers’ brand names front and center.
In post-World War II America corporate gift giving really took off. As the nation went into the economic boom of the 1950s with increased competition, companies saw the importance of gift giving as a way to build relationships with clients and also employees. As more companies developed, the need to keep good employees grew. Personalized gifts showed employees their value to the company and boosted morale, enhanced motivation and reduced turnover rates.
Such gestures fostered a culture of appreciation and recognition, making employees feel valued and creating a more positive workplace atmosphere. The same holds true with vendors and clients. Take my original story. Today there are dozens of local and national food ventures. By sponsoring our Christmas party, we developed a relationship with our reps, many of whom attended the party. In the second half of the 20th century, many companies budgeted in corporate gifts for the end of the year to help retain important clients.
In the more recent times, the biggest change in gift giving has been technology. Pens and paper weights with logos have been replaced with digital things, like USB drives and tech gadgets, but still with logos. Another trend is showing how responsible your company is by giving gifts that are sustainable or made by eco-friendly brands. Other companies like to show support for social causes or small local companies. Yet even with the changes over the years, the goal is still the same. Give gifts that will make connections, advertise your product, and show your appreciation to clients and employees to keep their support.
James Finck is a professor of American history at the University of Science and Arts of Oklahoma. He can be reached at HistoricallySpeaking1776@gmail.com.