Case Study 1: B&W's Expense Problem: Whose Expense is it? This is a true story that happened to an honor graduate of one of the authors' sales programs. The purpose of this case is to get our students to think about finding themselves in an ethical dilemma before such an event occurs! Hopefully by doing so, our students will realize the downside of making unethical expense claims will cost them more in reputation and advancement than they will ever gain in benefits! When introducing the case, ask the class what responsibilities the firm owes the salesperson in regard to helping them succeed. Then, follow up this question with: what does the salesperson owe their employer? One comment that should arise is the responsibility of the salesperson to behave honorably and protect the firm's resources. This responsibility includes only expending money on legitimate activities and not "stealing" from the company. It is difficult not to view Lauren's behavior as anything other than theft. She spent money on herself and her friends for enjoyment/socialization and then charged it to her employer who received no direct benefit from the expenditure. Even after Lauren "transferred" the expense to her employer, she still had time to correct her error in judgment but she chose not to do so! Why is it important to follow company policy regarding entertainment expenses? What other action could Lauren have taken to pay for the bar bill? Did Nick Miller's actions help or hurt Lauren? Is Nick in trouble for his actions? What type of documents/information will auditors want from Lauren? From Nick? How much trouble is Lauren in? What is the likely outcome of this misstep by Lauren