Case Study Analysis: Phantom Expenses

ETHICAL ISSUES IN BUSINESS Name Institution Affiliation Course Date of Submission Overall ethical issue/problem that surrounds the case The ethical issue that surrounds the phantom expenses case study is the issue padding where the sales reps of this company report fictitious expenses because the company does not require any receipts as it trusted the sale representatives. The employees are not honest with their employer. They have a perception that the employer is paying them less with respect to the tasks they are carrying out. Since the company trusted the sales reps. to an extent of not asking receipts, the employees took the advantage of stealing from the company by inflating their expenses by not providing the actual expenses. Facts have bearing on this ethical issue/problem With respect to expectation theory, padding is the questionable ethical issue that brings the fact that it would be unacceptable if all people in the company were padding. The expectation theory provides a principle guide which portrays every person to be equal to the other and thus, there is no need for others to things that others can not do. Padding is recognized by this theory as unethical for some people to put priority in treating themselves at the expense of others. Therefore, if the company discovers that the sale reps were stealing could result in doing away with expense accounts or requiring expenses receipts. Padding should not be done by everyone and giving notice provides an ethical decision as it saves harm done by others to the company. It is ethical to provide financial reports that are accurate as this enhances the sense of trust within the company. Providing false report could instill fear that employees are not getting what they deserve. To avoid this misconception the sale reps needs to atop their unethical behavior and take what is rightfully theirs. Ethical dimensions The case of padding by the sale reps was an unethical practice since if everyone in the compa...