Well, I don't want to take this too far off topic. But I do think there are occasions when appearances for clients are probably very important. I worked for a very successful law firm for a few years. The partners were sometimes required to stay in top-end hotels depending on the client (and the client was footing the bill for everything).

I think it's largely a question of "face". You will see this issue quite a bit when doing business with Asian companies, and to a lesser extent with European companies.

Your point on responsibilty to shareholders is well-taken. But it's a concept that is not always as prevalent in other countries.