Case 10

Relevant facts of the case:

 Leo Santos – junior consultant in a medium-sized management consultancy firm

 Working on the improvement of the accounting system of two clients
 Would require Leo to travel to Marikina City
 Expenses for two trips include – Php 960 (mileage on his car) and Php 440
(meals), for a total of Php 1,400
 Leo’s considering of charging P 1,400 to each client
 Rationale: If he had taken separate trips, each client would have to pay Php 1,400

Double billing is the act of charging two clients for the same expenses. In this particular
case, Leo Santos is in a dilemma of whether he should bill his clients separately or double
bill them. According to National Association of Legal Fee Analysis (NALFA), double
billing is unethical, and it violates the rules of professional conduct. It is also one of the
ethical issues that are encountered by many consultants. In contrast, the reality is that Leo
could charge each client for the total amount. Provided that, if he had taken separate trips,
each client would have to pay that amount. On the other hand, the ideal action for him to
make is to abide by the Professional Code of Ethics for Management Consultants, which
is to divide the total amount between the two clients. As an illustration, the fundamental
principle of integrity requires consultants to practice several values including honesty and
fairness. Indeed, double billing violates ethics and precludes consultants to participate in
honest dealings with clients.

If Leo billed the clients separately, he would be satisfied that he complied with ethical
values as he did not take advantage of the situation. However, he has to let go of the
opportunity of gaining additional funds. Also, he has to prepare paperwork, which is the
cover letter. It comprises of supporting computations and a formal letter of explanation
regarding expenses incurred. On the other hand, if Leo would bill the total amount to
each client, he would obtain extra money. It is also more convenient as he no longer
needs to prepare a cover letter. On the contrary, his action is considered unethical which
will affect his reputation, credibility, and integrity. It will also have an impact on the
consultancy firm as he serves as a representative of the firm and a role model to junior
consultants. Third parties may have the impression that the consultancy firm is not
observing proper ethical standards. With all of these things considered, the more ethical
thing for Leo to do is to split the total amount into two. Therefore, Leo should provide a
cover letter stating the situation and the expenses would be broken down for two clients.