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TOPIC: TRAVEL & EXPENSES

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SCENARIO: Getting Creative with Expenses Claims i n
va l u e s
Integrity First Purpose Led Customer Driven Future Focused One Team

Scenario
Ed, a shift manager, leads a team of around 20 people. Today he's invited everyone for a team outing after work.
He's getting ready to leave for the event but first he wants to talk to Erica, one of his shift supervisors. "Hey Erica,
you still working?", he says. "Everyone else has left, they're on their way to the restaurant." Erica explains that
she is just trying to finish today's paperwork. She says she won't be able to relax leaving anything unfinished, but
she'll only be another 5 minutes.
Erica takes the opportunity to thank Ed for taking the team out. "It's been a tough year." she says, "and it'll be
nice to spend some time as a team outside of work." Ed says he agrees and that he wanted to do something for
the team to boost morale and say thank to everyone for their hard work.
"Hey, can I ask a favor of you?" he asks. "Can I ask you to pay the bill tonight? I can make sure you get it
reimbursed quickly." Erica is happy to do it, but she's also curious as to the reason why. Ed explains that the
budget has been cut several times since the event was planned. He laments that he didn't want to cancel the
event as he feels the team deserves it, but, he continues, they're going to have to be a "little creative" about how
they pay for it. He suggests that Erica submit her receipt categorized as miscellaneous supplies. He says he will
approve it immediately and "no one will look too closely" after that.
Erica notes some flaws in his plan. She points out that the receipt will state what the payment was really for, but
Ed reassures her, suggesting he'll claim he lost the receipt and that Finance will put it through no problem as long
as it is approved by him. He continues that he would have a problem submitting it directly to his boss, especially
following the difficult conversation he had with him regarding the budget cuts. Erica agrees. She is focused more
on enjoying the evening out.

Discussion Starters
1. So what do you think? Is there some part of the story that illustrates a lack of financial integrity by either
Ed or Erica?

2. Given the circumstances, that the team outing was already booked but Ed understood from a recent
conversation with his manager that he would not approve the expenses, was Ed's request valid when he
asked Erica to pay the bill for the team outing and then submit the expenses as supplies?

3. How might Ed have handled the original problem of paying for the team outing?

4. What are the chances that Ed’s manager will find out? According to Ed no one will look closely after he
has signed off for the expense. As long as he has approved it, finance will put it through no problem.

5. What consequences will Ed face if his manager finds out? And what about Erica­—is it different for Erica
because Ed is her boss?

6. If your supervisor or manager asks you to do something you suspect (or know) is wrong, what do you
think you should do—especially when it comes to things like expenses and other company records?

7. Let's bring this closer to home. Have you seen this kind of situation in your own workplace?
 tion
TOPIC: TRAVEL & EXPENSES
ac
SCENARIO: Getting Creative with Expenses Claims i n
va l u e s
Integrity First Purpose Led Customer Driven Future Focused One Team

Guidance
Johnson Controls takes cases of expense fraud seriously. Employees are expected to be truthful and
forthright in all interactions and communications. Intentional acts of fraud are subject to strict disciplinary
action up to and including termination.

A manager who approves expenses claims without checking that they are accurate, complete, and truthful is
known as a “derelict manager”. Approving expenses claims without diligence is unprofessional, and instances
of bad judgment can have a negative impact on your career potential and your reputation.

Close attention should be paid when dealing with claims relating to gifts or entertainment for customers, and
especially government customers, where strict guidelines must be followed to protect Johnson Controls and
its employees from allegations of bribery and corruption.

While a legal obligation, proper recordkeeping is also essential to efficient and profitable business operations.
We all have a part to play in keeping records accurate and current; it helps us maintain the trust and
confidence we have built with customers, investors, and other stakeholders.

Managers must be the first line of defense in ensuring that expense reports meet our requirements—carefully
reviewing and verifying that the reports are legitimate and compliant with Johnson Controls policy before
approving.

Managers (and any approvers) are expected to:

•  understand Johnson Controls policy around allowable expenses and the procedures for reporting them;
•  be familiar with the typical expenses they can expect to see from their employees;
•  closely review all expense reports;
•  discuss the report with the employee if something is unclear or doesn't make sense;
•  ensure their employees understand and adhere to the Johnson Controls Global Business Travel,
Entertainment & Employee Expense Policy.

Managers and other approvers should be alert to warning signs such as:
•  Employees spending more than others in comparable positions or spend situations
•  Claiming non-business related items
•  Inflating normally acceptable expenses—in particular, items paid for with cash
•  Overcharging the company credit card (exceeding allowable limits, etc.)
•  Splitting a large amount into several items to appear allowable

In addition, conduct that violates laws and regulations can have serious consequences—for the individuals
involved, for corporate officers, and for the whole organization. These consequences include fines, penalties,
and prison sentences.
 tion
TOPIC: TRAVEL & EXPENSES
ac
SCENARIO: Getting Creative with Expenses Claims i n
va l u e s
Integrity First Purpose Led Customer Driven Future Focused One Team

Raising Concerns
It is important to help preserve our values and our -- Misstating financial records
reputation. If you witness behavior that violates our -- Conflicts of interest
values, policies or the law, there are many avenues you
-- Violations of Trade Controls, for example, Export/
can use to raise a concern. Talk to;
• Your supervisor or any other member of Import regulations
management -- Government contracting violations
• Human Resources Department -- Violations of Laws (Fair Competition laws, Data
• A member of the Law or Compliance teams Privacy, Trade Compliance, etc.)
• Integrity Helpline - Find your country’s phone -- Environmental Health and Safety concerns
number at; JohnsonControlsIntegrityHelpline.com
(significant issues)
-- Possession of weapons
Issues that must be logged in the Integrity Helpline are
-- Discrimination
-- Bribery
-- Sexual Harassment
-- Falsifying expenses
-- Retaliation
-- Falsifying documents or records

NOTE: If you are not sure if a matter should be logged in the Integrity Helpline, contact askcompliance@jci.com