Reference no: EM133330938

This Ethical Dilemma focuses on salespeople reporting their expense accounts. Sophie just completed a sales training course stressing the importance of accurately filling out expense vouchers. Yet while filling out her first weekly expense vouchers, Sophie's mentor Emma encouraged her to pad the expense account. Emma explained the accounting department supervisor was unsympathetic to salespeople and refused to change the expense voucher forms to include a place for tips, making tips an out-of-pocket expense. Emma explained how even though padding violated company policy, it was an accepted practice in the sales department and she was encouraged to do the same by her mentors. Emma showed Sophie how most salespeople use blank cab fare receipts when padding in waiter, bellhop, and skycap tips. Emma then mentioned that the Vice President of Sales never questioned salespeople who went along with the system, but one salesperson was no longer working for the company after accurately reporting expenses. This was Sophie's first real job out of school and Emma was her mentor.

1. What should Sophie report on her expense account? What is the basis for your recommendation?

2. Should Sophie speak up and voice her concern on this matter? Why should Sophie have a problem?

3. If Sophie does not pad her accounts, then all tips will come out of Sophie's pocket. In addition, her sales manager may ask why her expense account is lower than all the other sales reps'. Sophie's co-workers may view her as a troublemaker if she speaks up. How do you feel about this issue?

4. Now, let's assume you completed the sales training with Sophie. How would you advise Sophie? Would you tell her to report her actual expenses or would you advise that she pad her expense accounts?