PricewaterhouseCoopers (PwC) is a large global accounting firm. When its employees traveled to and from clients’ facilities and for clients, PwC paid the cost and then charged travel expenses to the client. PwC’s practice was to charge the regular rate, when in fact it was getting discounts. Clients accused PwC of overcharging them for travel. PwC said there was nothing wrong with this practice, but it agreed to a several-million-dollar settlement to resolve an Arkansas lawsuit over travel rebates.

1. Is it ethical and socially responsible for PwC to charge the full rate for travel expenses when it gets discounts?

2. If you worked for a company and knew it did this, would you say anything to anyone about it? If yes, to whom would you speak, and what would you say?