Case
Teaching Notes
Supplementary Resources
Abstract
Daniel Wang, educated in China, submitted an expense report for USD 72,000 along with a USD 4 million contract for asphalt material to his boss at Utah Asphalt company. Embedded in the expense report was USD 16,850 for “entertainment fees,” which Daniel felt was necessary to secure the contract from officials in a Chinese city. When his boss, Jack, demanded that Daniel stop unethically “bribing” government officials, Daniel was offended and worried that the company might be compromised if he could not continue to woo the customer. Why didn’t Jack understand?
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit A: Expense Report on Daniel’s Books
Expense report – Mianyang contract Submitted June 2013 | Price each (USD) | Number of people | Number of times | Total (USD) |
Business class airfare China/Las Vegas | 4,000 | 6 | 1 | 24,000 |
Flight from Las Vegas/Salt Lake City | 300 | 6 | 1 | 1,800 |
Hotel suite – lake view (1 bedroom) | 1,259 | 5 | 3 | 18,886 |
Daniel hotel | 244 | 1 | 3 | 732 |
Meal cost per day | 200 | 6 | 3 | 3,600 |
Drinks per day | 225 | 6 | 3 | 4,050 |
Limo transportation | 750 | 1 | 3 | 2,250 |
Gambling | 500 | 5 | 3 | 7,500 |
Shows | 250 | 5 | 2 | 2,500 |
Spa | 250 | 5 | 2 | 2,500 |
Escort fee charged by Company | 200 | 5 | 1 | 1,000 |
Entertainment fee charged by Escort | 650 | 5 | 1 | 3,250 |
Grand total | 72,168 |
Exhibit B: Expense Report Submitted by Daniel
Expense report – Mianyang contract Submitted June 2013 | Price each (USD) | Number of people | Number of times | Total (USD) |
Business class airfare China/Las Vegas | 4,000 | 6 | 1 | 24,000 |
Flight from Las Vegas/Salt Lake City | 300 | 6 | 1 | 1,800 |
Hotel suite – lake view (1 bedroom) | 1,259 | 5 | 3 | 18,886 |
Daniel hotel | 244 | 1 | 3 | 732 |
Meal cost per day | 200 | 6 | 3 | 3,600 |
Drinks per day | 225 | 6 | 3 | 4,050 |
Limo transportation | 750 | 1 | 3 | 2,250 |
Entertainment | 1,123 | 5 | 3 | 16,850 |
Grand Total | 72,168 |
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved