September 12, 2015

Centennial College

FALL 2015 Semester

MGMT 703 – Section 003

Instructor: James Farmer

Case #1 – The Travel Expense Billing Controversy

NOTE - This is the first (of five) graded, hand-in cases and each case will be worth:

10% of your final grade

Review the background material in the “Assignments” module of eCentennial about the case:

“The Travel Expense Billing Controversy and the False Claims Act”

and answer only the following three questions:

1. Other than for the obvious reason of profit maximization, why would an independent audit firm, like PwC, that depends upon the maintenance of its reputation for integrity and professionalism, to retain and attract clients, risk the loss of that reputation by engaging in what appears to be unethical behaviour (not returning travel expense rebates)? Explain your answer and reasoning.

2. In the employer – employee relationship, who has the greater duty of care: the employer to provide: i) stringent policies/controls to govern employee behaviour and ii) appropriate training so that all employees understand the implications of the policies/ controls or the employee who must carry out their responsibilities in a professional and efficient manner? Choose only one of either the employer or employee and thoroughly explain the reasons for your answer.

3. What types of organizations are more ethical in their operations: i) “for profit” businesses or, ii) “not-for-profit” businesses? Explain the reasoning behind your answer.

Each of the five cases that you will hand in during the semester must be answered without any reference to any internet sources, your classmates’ work, previous students’ work or any other materials (except the textbook and case material). If any case submissions are determined to be plagiarized, then, the case will be graded as 0%. Your papers are graded upon your ability to reason, make coherent arguments and produce thorough analysis, given the assigned questions.

Each student’s individually prepared case will be physically submitted at the beginning of class on:

THURSDAY SEPTEMBER 24, 2015