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Case
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Reference no. 703-020-1
Authors: Mike Ward
Published by: Wits Business School - University of the Witwatersrand
Published in: 2003
Length: 8 pages
Data source: Field research

Abstract

Robert Shaw, CEO of Constantia Insurance Company Ltd, had a tough decision to make. Margaret Townsend, his senior Administrative Director, had just left his office, having confessed to breaking company policy. She had a long record of good service with the company. Now, however, she had informed him that she had been involved in a car accident on her way home the previous evening and, because ''it was an emergency'', she had made use of her corporate credit card. The accident itself had been relatively minor, but, with no cash or cheque book on her, Mrs Townsend had ''felt obliged'' to pay the vehicle-towing operator using her corporate credit card. Relatively few staff had corporate credit cards. The company policy was very clear on their usage: under no circumstances, nor in any position whatsoever, were company credit cards to be used for private use. Constantia Insurance was very strict in enforcing its policies. Shaw regarded this as critical to business success. What should he do?
Location:
Industry:
Size:
Medium
Other setting(s):
2003

About

Abstract

Robert Shaw, CEO of Constantia Insurance Company Ltd, had a tough decision to make. Margaret Townsend, his senior Administrative Director, had just left his office, having confessed to breaking company policy. She had a long record of good service with the company. Now, however, she had informed him that she had been involved in a car accident on her way home the previous evening and, because ''it was an emergency'', she had made use of her corporate credit card. The accident itself had been relatively minor, but, with no cash or cheque book on her, Mrs Townsend had ''felt obliged'' to pay the vehicle-towing operator using her corporate credit card. Relatively few staff had corporate credit cards. The company policy was very clear on their usage: under no circumstances, nor in any position whatsoever, were company credit cards to be used for private use. Constantia Insurance was very strict in enforcing its policies. Shaw regarded this as critical to business success. What should he do?

Settings

Location:
Industry:
Size:
Medium
Other setting(s):
2003

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