Reference no: EM131379603

Troy just returned from a business trip for health care administrators in Orlando. Kristen, a relatively new employee who reports to him, also attended the conference. Troy works for Gateway Hospital, a for-profit hospital in the St. Louis area. The Orlando conference included training in the newest regulations over health care, networking with other hospital administrators, and reports on upcoming legislation in health care. The conference was in early March and coincided with Troy's kids school spring break, so the entire family traveled to Orlando.

The hospital's expense reimbursement policy is very clear on the need for receipts for all reimbursements. Meals are covered for those not included in the conference, but only within a pre-set range. Troy has never had a problem following those guidelines. However, the trip to Orlando was more expensive than Troy expected. He did not attend all sessions of the conference to enjoy time with his family.

Upon return to St. Louis, Troy's wife suggested that Troy submit three meals and one extra night at the hotel as business expenses, even though they were personal expenses. Her rationale was that the hospital policies would not totally cover the business costs of the trip. Troy often has to travel and misses family time that cannot be recovered or replaced. Troy also knows that his boss has a reputation of signing forms without reading or careful examination. Kristen is approached by the head of the accounting department about Troy's expenses, which seem high and not quite right. Kirsten is asked about the extra night because she did not ask for reimbursement for that time. Kristen knows it can be easily explained by saying Troy had to stay an extra day for additional meetings, a common occurrence for administrators, although that was not the case. She also knows that the hospital has poor controls and a culture of "not rocking the boat," and that other employees have routinely inflated expense reports in the past.

Assume that you are in Kristen's position. How would you respond to the inquiry of the head of the accounting department? In considering your response, address the following issues

Questions

1. What is at stake for the key parties? What is at stake for you [Kristen]?

2. What are the main arguments that you are trying to counter, assuming that you know Troy's position on the matter, and what are the reasons and rationalizations that you need to address?

3. What should Kristen do and what ethical considerations should influence her decision?