Case Study 2: Critical Incident 2-2. Ethical Expense Reporting (Superevision and Management)

Please review “Critical Incident 2-2. Ethical Expense Reporting” and then answer the following questions.  For each question. your response should be at least 200 words per question.

Ron Bush was supervisor of a merchandise sales department at the headquarters of a major retail store chain operation. He had been hired several years previously, and he was currently pursuing an MBA degree on a part-time basis. His salary had been adjusted upward because of his good performance at the firm, and he was participating in the company profit-sharing plan.

Ron was planning a business trip to Washington, D.C., that was to occur in about two months. In a conversation with another merchandise sales department supervisor, Kristy Whitcomb, he mentioned his forthcoming trip. Kristy proceeded to tell him she had just returned from a business trip to Florida on which she had taken her husband along with her. Kristy said they stayed an extra weekend and “really painted the town red on Saturday night.” She confided in Ron that she put the entire weekend through as part of her expense report.

Ron pointed out to Kristy that the employee handbook stated that only “business-related expenses” were to be reimbursed by the company. Kristy responded that she figured that all of her expenses, including entertainment, were part of a business trip. She rationalized that the plane fare did not cost the company any more by not leaving until Sunday, and she had been working very hard. Why shouldn’t the company pay for her husband to stay with her and have a good time relaxing? Besides, she had been working long hours and had been out of town frequently; she was due some additional “rest and recreation.” Kristy also told Ron that her manager did not reject any of the expenses she had turned in, so it must have been all right; otherwise her manager would not have approved it.

A week or so after their discussion, there was a company reorganization. Kristy Whitcomb was promoted to a position of division marketing manager. With the departmental changes, Ron Bush was now a supervisor reporting directly to Kristy. Nothing more had been said about the conversation they had had regarding business expenses.

Several weeks later, Ron Bush went on his business trip to Washington, D.C., and he decided to invite his wife along for the weekend. Ron’s wife had always wanted to go there and it was close to their anniversary date. Ron rented a car and enjoyed the weekend entertaining his wife and seeing the sights. He saved all of their travel and other expenses and entertainment receipts. As he was relaxing on the flight home, Ron wondered whether he should submit all of the expenses he had incurred on this trip to Washington, D.C.