Unformatted text preview: Case 1
Leo Santos, junior consultant at a medium-sized management
consultancy ﬁrm is currently working on the improvement of the
accounting system of two clients located in Marikina City. These
engagements would require him to travel to the city. Leo could
ask for reimbursement from his ﬁrm for travel expenses he
would incur. His total expenses for the two trips were P 960 for
mileage on his car and P 440 for meals. As he prepares the letter
requesting for reimbursement, he is considering charging for the
total amount of the expenses for both clients. His rationale is
that if he had taken separate trips, each client would have had to
pay that amount.
1. Who are the parties that are directly affected by this ethical
2. Is the image of the consultancy ﬁrm potentially affected by
3. Are the other consultants potentially affected by Leo’s
4. What would you do in this situation?
5. What would you do if both clients paid P 1,400 each for
your expenses with no action on your part? Relevant facts of the case:
* Leo Santos — junior consultant in a medium-sized management consultancy ﬁrm
° Working on the improvement of the accounting system of two clients
° Would require Leo to travel to Marikina City - Expenses for two trips include — Php96t} (mileage on his car) and Php440 (meals), for a total of Phpl ,400
* Leo’s considering of charging P 1,400 to each client ° Rationale: If he had taken separate trips, each client would
have to pay Phpl, 400. Double billing is the act of charging two clients for the same
expenses. In this particular case, Leo Santos is in dilemma of
whether he should bill his clients separately or double bill them.
According to National Association of Legal Fee Analysis
(NALFA), double billing is unethical and must be avoided
because it violates the rule of professional conduct. It is also one
of the ethical issues that are encountered by many consultants. A
professional who works for two or three clients during the same
trip should not charge the full travel time and cost to each client separately. A consultant who, in calculating the standard fee
rates, has already made a provision for the administrative and
communication charges of the firm should not charge separately
for these expenses in billing individual clients. In contrast, the
reality is that Leo could charge each client for the total amount.
On the other hand, the ideal action for him to make is to abide
by the Professional Code of Ethics for Management Consultants, ...
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- Spring '14
- Ethics , consultant, Leo Santos