Ethics - EOC - travel expense

[June06]

Ward is scheduled to visit the corporate headquarters of Evans Industries. Ward expects to use the information he obtains there to complete his research report on Evans stock. Ward learns that Evans plans to pay all of Ward’s expenses for the trip, including costs of meals, hotel room, and air transportation. Which of the following actions would be the best course for Ward to take under the Code and Standards?

A. Accept the expense-paid trip and write an objective report.
B. Pay for all travel expenses, including costs of meals and incidental items.
C. Accept the expense-paid trip but disclose the value of the services accepted in the report.

I think both B and C are fair solution…The answer shows B.

What do you think?

 

[cpk123]

B is the right answer.
You need to disclose first then accept if you are doing it, hence C is the wrong choice.
A is obviously wrong - since Ward’s objectivity could be questioned.

 

[June06]

Agree should disclose it first but the research report is the first place to disclose to client?

 

[cpk123]

Report would be disclosing to the outside world.
you need to get permission from your employer IN WRITING I believe. Just because you disclose it in the report does not absolve you from the fact that you were paid an all expense trip for the report.

 

[June06]

Thanks. Fair enough.

 

[CFA300]

Main point under conflict of interest is to avoid it at all (real/perceived). Only if its unavoidable should you accept and disclose. In this case its easily avoidable by paying for your own expenses.

 

[manxdude]

CFA300 wrote:
Main point under conflict of interest is to avoid it at all (real/perceived). Only if its unavoidable should you accept and disclose. In this case its easily avoidable by paying for your own expenses.

What if the client insists on paying and you disclose it - will this be enough to avoid conflict.