Jane is a new sales rep in a major small appliance manufacturer. She is placed under the guidance of the firm's most productive sales rep, Ann Green. Jane has a problem with the reporting of expenses. She feels that she should only report her actual expenses while Ann and the rest of the reps inflate their actual expenses. Ann's rule of thumb when it came to recording expenses was to inflate them by 25%. Her rationale was that the company owed them for their hard work and extra hours they put in. When Jane attempted to take the ethical approach and record actual expenses, Ann responded in an angry tone. She felt that her Job, as well as the jobs of the other reps, would be in jeopardy if Jane reported accurately. Ann was satisfied with the code that her and the other reps shared and they all agreed that the company did not really need that money because it was very profitable.
The problem in this case is that Ann and the other reps are reporting costs unethically. They inflate expenses in order to create more income for themselves. The magnitude of this problem on a scale of 1-5 is a 5. This problem is very serious. The company is being charged for expenses that don't really exis
5) What steps can be taken by a company to limit the amount of unethical recording done by its employees?
1) What should a new employee do if they disagree with the common practices of the existing employees at a firm?
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