callmesir

I have a coworker that was hired around the same time I was that I do most of my product training with. We share a lot of meals when we travel together, and I noticed he always purchases a gift card along with his meal. Our company allows $65 per person for Dinner, which is a bit high. As long as we pay with our company credit card, we're never required to submit receipts, everything is processed through SAP.

The likely hood of ever being caught is very slim. I personally have never been asked for a receipt and my company allows alcohol to be expensed. Since I don't drink very often, my meal expenses are generally less than most.

My question, is would you ever consider doing this? and would you mention anything to your coworker if you felt as though it were unethical?

Gamecock

Should be an interesting thread.

I think your coworker's behavior is unethical. He is being reimbursed for spending outside of the legitimate intent.

Should you say something?' Dunno. If he is caught will you be considered guilty by association? Of I had knowledge of such behavior my employer would consider me just as guilty as the person buying the giftcards.

cyclogenesis

+1 on unethical. If it is just a per diem then it is different as you are being reimbursed reasonable costs without accounting. But submitting a claim for a gift card is different.

And I must say, $65! Wow..

cordelli

Welcome to Flyertalk.

While I personally would not do it, if the company allows $65 a day, they can spend $65 a day. If they want to do that with a grilled cheese for $5 and a gift card for $60, or they want the lobster and fillet three times a day for $65, there's really no difference.

I also believe it's unethical, but because of your companies policy, they have opened the door to the abuse. They need to specify what is and what is not covered as part of their expenses.

Co-worker has balls though for doing it in front of other people.

DirtyDan

Wonderful thread discussion to start...

What your co-worker is doing is not only unethical, it's use of company resources for an unintended purpose which is tantamount to theft. I would hate to be called into some kind of disclosure meeting and have to admit that I knew my co-worker was doing something unethical and did not report it (especially if your company has ethics training which states you must report such activities).

I'm given a per diem while on the road and I personally have no problem putting money on a StarBucks card from time to time. It's justified to my superiors by stating that with my gold status (should I put that in my FT profile?) I get free soy milk and refills - but I have two separate cards and keep separate my employer's money and my own.

Along different lines, I had a young engineer a while back that was maxing his per diem to purchase batteries and razor blades. I told him to sit down and do a risk analysis on the benefits of jeopardizing his career for some batteries. I then showed him our corporate ethics guidelines and asked him what he thinks I am supposed to do now that I am party to his unethical behaviour. I ended up not reporting him and, as far as I know, it's never happened again. Recently I was mentoring another young engineer and I expressed my thoughts to him as such: The company keeps you out here on the road away from your home and family. In return they are willing to house and feed you with this per diem so go ahead and use it, but don’t abuse it!

When I hear of someone who gets greedy like this, I wonder what would make them risk their career, the salary and benefits for a few dollars?

troyb

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That's outrageous and completely outside the purpose of a meal reimbursement. I can't believe he had no problem doing it in front of you. I'd say something.

Sweet Willie

I don't like to rat, but OP callmesir should consider this.

Yes it is unethical in most eyes, but not really more so than someone steering company travel to their preferred flight/hotel/rental car provider that is more expensive than other options.

slawecki

of course it's unethical. i also think there is a compensation issue with the irs. if somebody pulled the full 65 on a daily basis and wrote it off as a business expense, that is a problem that is income not expense.

crabbing

i would not view them the same, since the travel on a preferred carrier is still travel, and thus an expenditure for the same intended purpose.

Sweet Willie

Seriously???? I doubt you really feel this way unless for some reason you've been in a situation where travel costs do not matter. By your reasoning I could book a domestic airfare that is $200 more than the competition, I could stay in the Four Seasons hotel for $400+ per night rather than the Four Points for $150 per night, and could rent the luxury car $150 per day instead of the mid sized $50 per day, but all would be ok with you because the expenditure is for the same intended purpose. If my scenario is ok, please PM me if you are hiring as I'd love to come work for you if business travel is involved.

Some corp travel booking engines now have filters that do not allow higher fares to be booked unless the employee either gets prior approval or provides a substantive reason why the higher fare needs to be booked. Needless to say, asking to book a higher fare because the more expensive airline is the employee's preferred provider, isn't a worthwhile reason in most people's minds. FT minds of course it is, accountant/budget conscious minds, no.

MSPeconomist

IANAL and IANAA (accountant), but the tax implications make this a serious issue for the company and the unethical employee unless he uses the gift cards exclusively for later business travel expenses, although even that might mean having some travel expenses charged to the wrong account/client and could be viewed as a workaround to the $65 limit which the company imposes for a reason.

I hope that the OP always gets separate checks.

Maybe the OP should ask some clarifying questions about this practice, observing that he has observed it and wants be be sure that his understanding of it being prohibited is indeed correct. If the new company stresses ethics, reporting the fraud in writing might be a good way to protect oneself.

wharvey

The benefit is $65 for a dinner.... not for dinner... and whatever else the person wants to buy for later. I would go beyond unethical, and call this stealing... and I know this person would be out if it happened at any place I worked.

Unless I had written approval, I would NEVER consider doing this... my job is more important than a few gift cards.

Thomps000

I believe it is unethical too. I normally have approx $75 for dinner to spend that I bill to clients. I normally spend $25-$30 at most because that's what I feel is acceptable for a dinner. I have considered buying Gift Cards with my own money where you get a bonus (Purchase $100 of GC, but get $125) and use part of it when I'm on the road and keep the remaining for myself, but have never done so. I think that even skirts the lines of ethical behavior.

I don't know if I would have the courage to say something, even though it should be said. I would think he would know what he is doing is not ethical, but he chooses to do it anyways. Unless he's a moron that is, then he may not think anything about it.

Pat

slawecki

Willie, when i worked for Sylvania, they would per Diem me at about half the cost of a stay and food. both they and pratt and whitney ran me all over the eastern half of the country, and air fare was so high in those days, i was required to drive. frequently 200miles out for a business meeting that day, and 200 back to be at my desk by 8 am the next morning. phd engineering jobs were tough to come by in those days. remember, that was when all the phd engineers and scientists fought for a cab badge in nyc.

if i could have figured out a way, i would have taken from them.

i had a project in CA for about a year. flew from hartford in the early am. went to city of industry to work on project and then took the red eye back to be at my desk the next am. i would have taken anything that i could carry from them, if i could have found anything of value.

texasguy77

This is certainly unethical and should be reported. The fact that you brought this up on FT is an indication that it bothers you and you know that it is 'shady'. I'm surprised that your company doesn't require receipts and that your Per Diem is $65. When I worked for a major wireless provider, our PD was $40 per day and a receipt was required for anything over $25.