What should you do?

You are the project manager at a large automaker in Japan. Your project involves designing the next generation 4-wheel drive Sport Utility vehicle for the Asian market. A new fuel efficient engine design is required as part of your project. Unfortunately, your project team did not have the necessary expertise to design and manufacture a new fuel-efficient engine.
Hence, your company plans has decided to subcontract all the engine designs an outside manufacturer in Europe. During your initial visits to European partners, you were presented with an expensive gift. You were told that this is local custom to give such gifts to business partners to during their visits.
What should you do?
A. Since the gift will not influence your future decisions, you can accept the gift as there is no conflict or interest
B. Since accepting the gift may give the appearance of impropriety you should decline the gift outright
C. Accept the gift so as not to offend anyone. However, report the gift to appropriate parties at your company so that you do not give the appearance of impropriety
D. Explain that the gift may be constructed as a conflict of interest and hence you cannot accept the gift

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