Case 12: Phantom Expenses
1. What are the ethical issues in this case?
Padding expense accounts is a frequent ethical issue in business. The ethical questions are
2. Given all the factors, what should Jane have done?
Jane faced a personal ethical dilemma. Should she have accurately and honestly reported her
expenses, or did she have some obligation to the others to go along with their practice? It is
3. What would have been the consequences for Jane and the company if she had accurately
reported her expenses? What would the consequences have been if she had inflated her expense
account as Ann had urged her to do?
It is difficult to state all the consequences for Jane and the company of her actions. However,
4. What ethical principles would be useful here?