ETHICAL DILEMMA
Lauren is the creative director at a major ad agency. She heard of some
billing practices involving a print project for a candy client that bothered her. It turns out that the print costs for the project had exceeded budget by $20,000. (The project budget was only $30,000.)
Asking the candy client for an additional $20,000 would be a problem. A fellow agency staffer struck a deal with the printer and added $20,000 to the bill of another of the agency’s large clients, an automobile company, who had a much larger budget and could afford the large bill.
This solution seemed to work out for all. The candy client did not know how far over budget the agency had gone; the printer got paid for all of the work it had done; and the agency did not have to eat its mistake.
QUESTION
If the agency had had a code of ethics, how could this over-budget situation been remedied in a more ethical manner?
Lauren is the creative director at a major ad agency. She heard of some
billing practices involving a print project for a candy client that bothered her. It turns out that the print costs for the project had exceeded budget by $20,000. (The project budget was only $30,000.)
Asking the candy client for an additional $20,000 would be a problem. A fellow agency staffer struck a deal with the printer and added $20,000 to the bill of another of the agency’s large clients, an automobile company, who had a much larger budget and could afford the large bill.
This solution seemed to work out for all. The candy client did not know how far over budget the agency had gone; the printer got paid for all of the work it had done; and the agency did not have to eat its mistake.
QUESTION
If the agency had had a code of ethics, how could this over-budget situation been remedied in a more ethical manner?