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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 dilemma? 2. Is the image of the consultancy firm potentially affected by Leo’s decision? 3. Are the other consultants potentially affected by Leo’s decision? Explain. 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

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