Sending red envelopes to suppliers during the holidays counts as rebates. The reasons why giving red envelopes to suppliers during the holidays count as kickbacks are as follows:
1. Violation of business ethics: Sending red envelopes to suppliers may violate the principles of business ethics, namely fair competition and honesty and trustworthiness. Such conduct may create an unfair playing field where other suppliers cannot compete fairly.
2. Influence supplier selection: Obtaining supplier preference by sending red envelopes may affect supplier selection. This behavior may lead to supplier selection not based on objective factors such as product quality and price, but on personal interests.
3. Inducing improper behavior: Sending red envelopes may induce suppliers to take improper behavior, such as providing defective products, raising prices, etc. This behavior may harm the interests of enterprises and have a negative impact on consumers.
4. Legal risks: Sending red envelopes may involve bribery and violate anti-corruption laws and regulations. If discovered, businesses may face legal liability and reputational risks. So giving red envelopes to suppliers during the holidays counts as kickbacks. Suppliers are merchants who provide products or services to businesses or individuals. Suppliers can be raw material suppliers, parts suppliers, equipment suppliers, human resources suppliers, etc.