2. AgendaCompliance and Introduction
Sources of additional information2professionalstandards
3. AgendaCompliance and Introduction
Sources of additional information3professionalstandards
4. Professional Standards ComplianceFailure to follow described policies will result in significant penalties, up to and including immediate involuntary termination.4professionalstandards
5. Policy AreasProtecting /
sharing client informationCompetitor data
and client conflictHarassment
tradingGeneral and Expense PoliciesPolicy Areas5professionalstandards
a set of worldwide professional standards (captured in client service policy statements) which reinforce our commitment to acting with integrity and honesty
specific guidelines (captured in client service policy statements) for tricky situations where there is tension between doing the best for the client and doing the “right” thing, or between needs of multiple clients
a group of people in the center and in local offices dedicated to interpreting and applying the policiesProgram Description (1 of 4)6professionalstandards
Bain’s reputation and success ultimately depends on it to ensure that the instinctive reaction to a tricky situation is generally the right one
reinforce a firm wide commitment to “doing the right thing”
reinforce a culture which embodies integrity and honesty that we can all be proud of
provide a business environment consistent with firm management and employees values
Protection from lawsuitsProgram Description (2 of 4)7professionalstandards
every individual employee - embodies our professional standards, thoroughly understands them and applies them consistently and comprehensively
local office Professional Standards Program Manager - interprets, counsels, provides feedback to other offices and the Center
Professional Standards Program Director (Peter Aman) - central resource to manage implementation of program and assist driving of continued program development and improvement
Professional Standards Program Officer and Coordinator (Colin Anderson, Barb Bjornson) - central resource to further develop, refine, and interpret; mechanism for mediation
Management - reinforce (actively), interpret, apply, provide incentives/disincentivesProgram Description (3 of 4)8professionalstandards
through local resources (Professional Standards Managers coordinated with the Center)
worldwide training for all levels
role modeling at the team level
local communications and marketing coordinated by the center (e.g., intranet)
incentives and disincentives
BVUProgram Description (4 of 4)9professionalstandards
10. AgendaCompliance and Introduction
Sources of additional information10professionalstandards
11. Professional Standards PoliciesProtecting and sharing client information
Competitor data gathering
Exclusivity and client conflict
Harassment and discrimination
General and Expense Policies
12. client identity
client internal data
purchased studies (permission may be overarching at case start)presentations
success storiesgeneral insights
general developed information
publicly available informationInformationWhich can and should
be sharedWhich should be shared once sanitizedCannot be shared without explicit permission from the clientNo confidential or proprietary information (including the client’s identity and characteristics of the relationship), provided by or obtained for, a client may be given to anyone outside the case team. Information which is neither proprietary nor confidential may be shared only with the express approval of a Bain partner on the originating case, and in many cases, the client.Protecting & Sharing Client Information - Guidelines12professionalstandards
13. When client information is provided to a competing case team or within a Practice Area, the material must be sanitized by or at the direction of the Operating VP who is then also responsible for approving the final product
When client information is provided to a non-competing case team, the process of sanitizing the information may be done by or at the direction of the VP asking for the information but the Operating VP is responsible for approving the final product Sanitizing (or disguising) client information and approving/disapproving communication of the information is the responsibility of the Operating VP who did the work according to the following guidelines:Protecting & Sharing Client Information - Disguising Information13professionalstandards
14. Is the information confidential (or does it unambiguously belong to the client)?YesNoDoes the developed info create a competitive advantage for the client (i.e., would the value received by the client’s be reduced by sharing the info?)NoDoes the developed information depend heavily on client proprietary data/input/information
Source data highly proprietary (not public)
Source data reliant on client input and or involvement (e.g., client interviews)NoDid client pay a significant portion (e.g., >x% or >$x) of the cost of Bain’s value-added in developing the information (i.e., insight paid for by one client, not many)?NoYesYesYesWould sharing the info pass the “Sunshine Test”?Would sharing the info pass the “Sunshine Test”?YesNoNoYesSanitize Information and Share itInformation May Not be Shared Without Client PermissionInformation Should be SharedProtecting & Sharing Client Information-Decision Rules for Developed Info.14professionalstandards
15. *Copyright permittingProtecting and Sharing Client Information - Policy SummaryExternal Reports
Article or report name, date, author, etc.
News or magazine article
Report purchased by Bain (not client)
Industry overview data
Strategic insights (if the insights were developed over many clients and not just one (e.g., lessons learned from a retail customer segmentation case))
Strategic insights (if the insights were developed for just one client (e.g., a sequencing algorithm for two auto manufacturers))
Internal client data
Report purchased by client
A study conducted by the client
A data spreadsheet from the clientXXX*X*XXXXXXX*XXInformation that can and should be sharedClient approval before sharing informationInformation must be disguised before sharingSubject to Operating VP approval15professionalstandards
16. The greatest amount of the highest quality information
At the lowest possible cost for our client
With the highest standards of professional conduct (and tradeoffs will always be resolved in favor of business ethics over data collection convenience)Competitor Data Gathering - Objectives16professionalstandards
17. Client confidentiality must be protected.
never reveal client name without VP and client approval
All statements, written or verbal, must be true.
Lying is never acceptable under any circumstances
Refusing to answer questions is preferable to lying
Bain Employees can not mis-represent themselves, the firm (name or type of enterprise), or the type of research they are performingCompetitor Data Gathering - Policies (1 of 4)17professionalstandards
18. Interview respondents can be promised non-sensitive results of research only if such results are furnished as described and promised
No company may be contacted by a case team for a competitor interview without express approval from a VP on the case (to prevent inadvertently calling another office’s/team’s client by mistake)Competitor Data Gathering - Policies (2 of 4)18professionalstandards
19. Only VPs may approve/sign written statements which describe for competitor interview targets the purpose of the questions or the destination/limitations on the use of the resulting data
Non-management employees may be contacted only with express approval (from a VP on the case)
When interviewing someone currently associated with our client who previously worked for a competitor of our client, Bain staff should clearly communicate that
we expect them to honor their confidentiality commitments to their current (or previous) employer
we are specifically asking them to avoid divulging any information which is proprietary or should be considered confidential
we are only asking for information that they are comfortable divulgingCompetitor Data Gathering - Policies (3 of 4)19professionalstandards
20. In no circumstances may a Bain employee offer any kind of monetary or non-monetary incentive for the purpose of gathering information
Bain employees are responsible for the actions of those they directly or indirectly supervise
Overarching test of any decision is always the “Sunshine Test” - whether the action stands up under scrutiny by an objective 3rd party (or on the front page of the Wall Street Journal)Competitor Data Gathering - Policies (4 of 4)20professionalstandards
21. How do we represent ourselves?
I am (your name) of Bain & Company - a management consulting firm
I am (your name) of Bain & Company - I am doing market research
I am (your name) a potential investor
I am (your name) a potential customer
I am (your name); would you give me some information
I am (your name) a business school student
Bain & Company - a market research firm
a market research firmAlways AcceptableAcceptable Only with VP and often client ApprovalAbsolutely ProhibitedXXXXXXXXCompetitor Data Gathering - Guidelines (1 of 3)21professionalstandards
22. How do you represent the client?
industry of client
area of interest to client
What organizations do we contact?
security analystsAlways AcceptableAcceptable Only with VP and often client ApprovalAbsolutely ProhibitedXXXXXXXXXXCompetitor Data Gathering - Guidelines (2 of 3)22professionalstandards
23. Who in the organization do we contact?
middle and junior management
non-management (labor and clerical)
Are incentives appropriate for gathering information
other non-monetary rewardsAlways AcceptableAcceptable Only with VP and often client ApprovalAbsolutely ProhibitedXXXXXCompetitor Data Gathering - Guidelines (3 of 3)23professionalstandards
24. Bain & Company is dedicated to helping our clients achieve outstanding results. As such, we pride ourselves on having the most rigorous standards in the consulting industry with respect to confidentially and conflict of interest.Confidentiality of data:Our goal is absolute protection of proprietary client data
Rigorous internal policies and procedures“Assignment exclusivity’:Bain & Company will not accept a client assignment worldwide where in our judgment success would cause an existing client assignment to fail. Under many circumstances, this permits Bain to serve two competitors in an industry. However, this will often restrict staffing and the office involved. To our knowledge, no other leading consulting firm operates a standard this rigorous.Exclusivity and Client Conflict - Policy Summary (1 of 2)24professionalstandards
25. Formal “performance partnership”:Where appropriate, we aspire to agree to formal “performance partnerships” with our clients, aimed at creating sustained exceptional client results. Such arrangements are entirely at the behest of our clients. A “performance partnership” relationship is in no way a requirement by Bain & Company.“Internal Bain gatekeeper”:A member of the Bain & Company worldwide Policy Committee is designated “internal gatekeeper”, to ensure any issues relating to possible conflict of interest are resolved in a manner fully consistent with Bain policies and client interests.“People exclusivity:Individuals who are involved in strategy work for a client are restricted from dong strategy work for a direct competitor for a minimum period following the end of an assignment - typically one to two years for senior individuals.Exclusivity and Client Conflict - Policy Summary (2 of 2)25professionalstandards
26. Harassment and Discrimination - Policy SummaryNo employee shall threaten or insinuate any adverse effects whatsoever on another employee who is refusing to submit to sexual advances.
No employee shall engage in sexually harassing behavior, including propositions, sexual comments, sexually degrading terms, or the display of workplace decorations, which could possibly offend another employee.
No employees shall create an offensive or intimidating work environment or experience by words, acts, jokes, threats, or printed materials which demean or show hostility to an individual race, color, religion, gender, nationality, age, sexual orientation, or disability.26professionalstandards
27. Our policy on insider trading provides the greatest protection to both individual employees as well as to the firm (designed to prevent any violations of securities laws, inadvertent or otherwise, as well as to avoid the appearance of improper conduct on the part of anyone employed at our firm).
You are prohibited from trading, and from tipping others to trade, in a company's stock when:
you know material, non-public information about a company; or
the company is a Bain client (and appears on Bain's Restricted List); or
the company is otherwise associated with Bain or a Bain client (and appears on Bain's Restricted List)
If trading outside the U.S., you are expected to adhere to local laws; however, even if there is no local prohibition on “insider trading”, trading in the stock of a Bain client is not permitted.Insider Trading - Policy Summary (1 of 2)27professionalstandards
28. The “Restricted List” of companies in which employees may not trade is maintained by Local Controllers, Corporate Treasury and possibly the senior Librarian in each local office.
If you own a security, you may
sell the shares immediately (assuming no issue of insider information) or
hold the shares (either in a “blind” trust or until 3 months after you leave Bain)
in rare circumstances and only with the approval of the Center, you may be able to sell a security on the Restricted List within a prescribed window
The consequences of insider trading violations can be staggering:
civil fines up to 3 times the profit gained or loss avoided by the trading
criminal fines (no matter how small the profit), of up to $1million
liability to those damaged by the trading
the appearance of improper conduct can have a very serious impact on Bain’s business and financial results
sanctions up to and including termination of employment for causeInsider Trading - Policy Summary (2 of 2)28professionalstandards
29. General and Expense PoliciesEmployees may not violate any criminal or civil laws or regulations (federal, state, or local) as part of any work for Bain & Company or its clients nor may they recommend (either seriously or in jest) that the client violate any criminal or civil laws or regulations.
Bain & Company letterhead may only be used for Bain & Company business.
Employees can not accept gifts or payments from 3rd party vendors [except those generally accepted in the business community) (e.g., frequent flier awards)].
Employees cannot use Bain or Bain generated contacts to promote or sell products of companies in which they have a material interest.General Policies:Employees must follow Expense Standards to determine reimbursable expenses.Expense Policies:29professionalstandards
30. AgendaCompliance and Introduction
Sources of Additional Information30professionalstandards
31. While talking socially with a friend who is working for a different client in the same industry as your client (telecommunications), your friend mentions that her manager has just approved the purchase of a $4,000 industry report. This 200 page comprehensive document is from a research firm and has much of the data that she needs to complete her analysis. She thinks it might be helpful to your case team.You believe this report contains much of the data and analysis that you would need for your own analysis. Your friend has a copy of the report, and, as it contains no private or confidential data from her client, she asks if you want a copy. Additionally, she offers you a number of general articles, web pages, and literature searches on the industry that might be of some use to you.Situation:Complication:Cross-Team Sharing of External Data Sources (1 of 3)31professionalstandards
32. Can you photocopy parts of the $4,000 report that her Bain case team purchased?
Can you use the publicly available articles, web pages, and literature searches your friend has found even though she conducted the search on time that was billed to another client?Questions:Cross-Team Sharing of External Data Sources (2 of 3)32professionalstandards
33. If Bain, not one of its clients, paid for the report, the information can be shared within Bain. However, you should check with the Bain library and the research firm that published the report to ensure copyright laws will not be violated.
If a Bain client purchased the report, Bain must secure the approval of that client in order to share the report with another client - check with your VP. Typically, the two clients will split the cost of the report. Again, you should check with the Bain library and the research firm that wrote the report to ensure copyright laws will not be violated.
Publicly available articles, web pages, and literature searches can be shared with you with approval of the manager on the case - check with him/her first. Answers:Cross-Team Sharing of External Data Sources (3 of 3)33professionalstandards
34. While researching the benchmarking work that Bain has done for its clients in the utilities industry, you find a case that contains an internal and external BDP for a competitor from another country. A case summary exists on BRAVA but it does not have any of the backup data that would be helpful in your efforts to benchmark the competitors of your client. Though the case was disguised in BRAVA it appears that some of the best practices are internal to the Bain client for whom the work was performed.A slide that lists sources in the BRAVA presentation shows that much of the information that was collected for the competitors is from public sources like OSHA, the EPA, and various local newspapers. However, there is detailed cost information on the old client that came from their finance department as well as an internal report that the client’s operations group conducted, independent of Bain, on their competitors’ machinery maintenance costs. To ensure the accuracy of your analysis and to save time, you propose to your case team leader that you integrate much of the data from the previous BDP into your own work, updating information where necessary by using the contacts unearthed by the original work.Situation:Complication:Sharing Data and Research Done for Another Client (1 of 3)34professionalstandards
35. Can you contact the CTA on the other case and request the publicly available backup data?
Can you use the other client’s internal study done on competitors’ machinery maintenance costs with the rationale that it does not contain any of the other client’s own data?
Can you utilize the list of sources that the previous team developed?
Can you request a copy of the original client’s final presentation and use the aggregated numbers they calculated to reality check your own work?Questions:Sharing Data and Research Done for Another Client (2 of 3)35professionalstandards
36. Obtaining the publicly available backup data is allowed. However, you should contact your manager for his/her approval before asking for the data.
Using the internal report that the other client’s operations group conduct on their competitors’ machinery maintenance costs is not permitted as it unambiguously belongs to the client and was developed using client resources. Even if the report contains only a summary of publicly available information and no internal data, it should not be used and would most certainly fail the Sunshine Test. (The Sunshine Test: would you and others at Bain be at all concerned if this particular information became very public - e.g., on page 1 of The Wall Street Journal.)
In order to update cost information in this example, it is permissible to contact the people and organizations contacted by the other case team. This is a time-saving step and, since the information is not considered confidential, using it will not compromise the Bain work done for the original client.
Sharing a client’s confidential numbers with another case team is not allowed unless the numbers are disguised, a step which generally renders the comparison useless. Maintaining the integrity of client’s proprietary and confidential information is essential to protecting Bain’s reputation as a firm and thereby protecting the interests of our clients. If you have questions about the original analysis, you should contact the operating VP from the original case.
Answers:Sharing Data and Research Done for Another Client (3 of 3)36professionalstandards
37. You have been staffed on a case team assigned to segment the customer base of a client in the automotive industry. Two years ago you helped conduct the customer segmentation for one of Bain’s retail clothing clients and, consequently, you have access to a few old presentations that describe Bain’s approach to needs-based segmentation, and then goes into detail about the segments and their profitability. Additionally, a novel approach, using animated 3-D PowerPoint, to display the profitability, growth, and attractiveness of the segments was developed to communicate the results to this retail client. The client liked the presentation so much that they still use the template for updated versions of the customer segmentation project.Because you gathered most of the data on the original case, you wonder if you should disguise the case and summarize the team’s findings for your new case team.Situation:Complication:Sharing Bain Presentations (1 of 3)37professionalstandards
38. What portions of the presentations done for the original client can be used in your own slide loop?
To what degree does the case need to be disguised?
Who is responsible for disguising the original work?Questions:Sharing Bain Presentations (2 of 3)38professionalstandards
39. General information, such as methodology, general industry constructs and insights and workplan slides usually do not need to be disguised. However, as always, the Operating VP (the one who led the original work) must give his/her approval before any slides can be shared.
When using a presentation as an example or a success story, the results need to be disguised to protect:
the identity of the client
any internal data of the client
proprietary insights or strategies which, if revealed, might disadvantage the original client or detract from Bain’s value-added
As a general rule, the material must should be disguised by the Operating VP on the original case or under his/her direction. However, the requesting case team’s Operating VP can disguise or direct the disguising of the material (if the requesting team works for a client which does not compete with the original client), with the approval of the Operating VP of the original team. In any case the Operating VP of the original team must approve of the final product.Answers:Sharing Bain Presentations (3 of 3)39professionalstandards
40. To gather information on competitor performance, you prepare a detailed interview questionnaire and create a list of call candidates. The list is not extensive, and the best (and potentially only) source of information will come directly from the competitors. You receive approval for the questionnaire from your manager, and at that time he reminds you of how critical this information will be in cracking the case.Your first several calls have not proved fruitful, and your list of candidates is growing very short very quickly. Apparently the industry is highly sensitive: few people are willing to share information that is even remotely confidential. By mid-afternoon the next day you make contact with one of your client’s competitors. When the competitor asks your reason for calling, you identify yourself as a Harvard Business School student gathering data for a project you are currently working on for one of your professors. The competitor sends the information to you via Federal Express.Situation:Complication:Identification of Employer (1 of 2)40professionalstandards
41. Is it correct to obtain proprietary or sensitive information from a competitor by misrepresenting your identity?The VP must approve (or direct the manager to approve) the list of companies called and the levels of employees contacted (i.e., management vs. non-management)
Under no circumstances may you misrepresent yourself
If, on giving your name, you are not asked to identify yourself further, you may proceed without offering Bain credentials
However, IF ASKED, the only appropriate answer is identifying yourself as an employee of Bain & Company
Additionally, if asked, you must give a truthful description of Bain & Company (e.g., a consulting firm)
While you may decline to give information, you may NEVER lieQuestion:Answers:Identification of Employer (2 of 2)41professionalstandards
42. You are gathering plant and site information on competitors to complete a Relative Cost Position (RCP) analysis for a client. Dressed in casual clothes, you travel to Michigan to take a tour of a competitor baking plant facility. The tours are open to the public, and spots can be reserved by calling the facility in advance.You have signed up to take the tour and have presented yourself as a traveler in town who was curious about the internal workings of a baking facility. The tour is brief, and you actually view little of the internal plant. You need hard data on the number of employees, as well as other data to complete the appropriate benchmarks.Situation:Complication:Data Gathering on a Competitor Site (1 of 3)42professionalstandards
43. On your way out the door, you grab a loose copy of the competitor's company newsletter lying on a table. Once in your rental car, you proceed to drive around the parking lot and count the number of employee cars to use as a proxy for headcount. You drive into town and hire a local photographer to take aerial photographs of the competitor plant and facilities. Before dashing off to the airport, you swing by the local planning office to have copies of the plant and facility blueprints sent to you back at your office.Complication:(continued)Is it correct to participate in a tour of a competitor facility without identifying yourself as a Bain employee?
Is it correct to take competitor information (newsletter) from the property without their expressed consent or knowledge?
Is it correct to gather competitor data by roaming the competitor premises (parking lot)?
Is it correct to gather data by utilizing the services of local businesses and government offices?
Is it correct to have aerial photographs taken?Questions:Data Gathering on a Competitor Site (2 of 3)43professionalstandards
44. You may attend tours; however, if asked, you must identify yourself as an employee of Bain & Company pursuing work-related issues (i.e., it is not a personal visit). Similarly, if a sign-in sheet is presented, you must fill in the spot for “Company” with Bain & Company.
You may take information that is generally available for the public (e.g., newsletters in the lobby of the company). However, you may not take property that is neither available nor intended to be available to the public (e.g., an internal phone book on the counter of the reception area).
You may visit areas of the plant that you have been invited to (e.g., the parking lot as part of the tour). You may not visit areas you have not been invited to (e.g., the parking lot if you have no permission to be on company property). You may not trespass.
You may use local government sources as long as you do not misrepresent yourself.
Aerial photographs may be taken, but VP’s and clients must approve this in advance and should be made aware that companies using this type of information have been successfully sued for damages for using proprietary information gained through such methods.Answers:Data Gathering on a Competitor Site (3 of 3)44professionalstandards
45. You are placed in charge of a competitor benchmarking study to assess your client's performance relative to the industry players. Four companies are being targeted to compare with your client. In order to get each of the companies to agree to provide information, you promise each of them that only averages of the data will be used (i.e., no individual company’s figures will be revealed). In addition, you assure each of the companies that you will follow up with them and provide them with any results or findings of the study.The study is a competitor benchmarking study performed to enable Bain to understand the client's market position relative to the other industry players. While the detailed information on each company may (or may not) be explicitly shown to the client, findings from the study will be internalized by the Bain case team members and may well be reflected in the insights provided in the presentation.
Situation:Complication:Disclosure of Reasons for Study (1 of 2)45professionalstandards
46. Can you promise the competitor employees you interview that Bain will not use individual company data (i.e., that Bain will use only averages across all companies)?
Can you commit to providing a package of results on the “study” to the competitor employees you interview?You can always decline to describe why you are performing research, and you do not have to disclose fully the reasons for your research. However, you MAY NOT promise that the data will be held confidential or for Bain use only if you are part of a team supporting a client -- either in ongoing case work or even in client development.
Under Bain & Company’s professional standards policies, YOU have the OBLIGATION to ensure that the work that you do, and those that you supervise do, meets Bain’s ethical standards. Thus, just because a manager or VP states that it is permissible does NOT mean that it is. If you feel that your supervisor’s statements about what is within the Bain policies is incorrect, you have the OBLIGATION to bring this to the attention of more senior management (within you case structure, to your office head, your local office Professional Standards Manager, or to the corporate Director of Finance).
Only VP’s may issue written statements for competitor consumption about the type of research or ultimate use of the data Questions:Answers:Disclosure of Reasons for Study (2 of 2)46professionalstandards
47. You, an AC, are working with a consultant on a project which requires many hours of shared work. The consultant with whom you are spending a great deal of time has complimented your appearance on several occasions and made positive comments about pursuing more than a business relationship. You are not interested and have neither returned nor encouraged any of the advances.At several of the late night dinners you share, the consultant has inquired aggressively about your personal life, has asked you to spend the night at his/her apartment, and has asked you to work one evening at his/her apartment instead of in the office. You deflect or decline all questions. Also, the consultant says that he/she is feeling unsatisfied with your work but thinks that you have the potential to improve if you follow his/her advice. Your next review could be better, the consultant adds. You have never shared his/her continuous comments with any of your supervisors.Situation:Complication:Sexual Harassment (1 of 2)47professionalstandards
48. Is any or part of the consultant’s behavior inappropriate?
What action should you take?His/her behavior is clearly inappropriate and a violation of Bain & Company sexual harassment policies.
You may discuss the issue with him/her; discuss the issue with his/her supervisor; or contact the HR representative in your office.
Questions:Answers:Sexual Harassment (2 of 2)48professionalstandards
49. The following cases illustrate the application of the expense policies and procedures under certain situation that are commonly encountered. The standards used in determining when a cost is reimbursable in each of the following cases are as follows:
fair to client and Bain staff
defensible to client under audit
defensible to IRS and other government regulatory audits
only business related (personal costs are not passed on to client)
costs of individuals who are not employees of Bain or of the client are not reimbursable
cost savings are passed on to client
no per diems
The following cases are not all encompassing; however, the standards listed above should be applied to each expense reimbursement submission.
Local Transportation and Meals
Should you have any questions on the application of the policies and procedures, please call a member of the Time and Expense Group in Finance prior to incurring the costExpense Policies49Ethics & Prof. Standandards
50. Air travel to client city (A) is cheaper if Saturday night stay is executed - no business is performed after 5 pm Friday - return trip on Sunday pmSame as 1., but four hours work is performed on Saturday and again on Sunday - travel home would not hamper work but would be less convenientSame as 2., but eight hours work each day, work could be performed in home city but would be much more difficultFull airfare is reimbursableRoom charge fully reimbursable if stay is at same hotel used during weekReasonable meals cost for Bain staffAirfare, hotel and meals costs cannot exceed cost of airfare with no Saturday stay over; no entertainment or car rental costs are reimbursableSame as 1.Same as 1.Same as 1.Same as 1.Same as 1.Same as 1.Same as 1.Same as 1.SituationAirfareHotelMealsNotes1.2.3.Expense PoliciesTravel Related Cases (1 of 4)50Ethics & Prof. Standandards
51. Air travel to client city (A) is cheaper if connecting through city (B) for weekend - no work is performed over weekend in City (B)Same as 4., but six work hours each day is performed in city (B) - at home of parents - no need to do it thereBain staff needs to be in client city (A) on Friday and Monday - he/she elects to stay in (A) for weekend - no work is performedFull airfare is reimbursable to clientNot reimbursableNot reimbursableTime spent in city (B) is personal and cannot justify stay in city (B) to client. Therefore, hotel meals and other non airfare costs are not reimbursableFull airfare reimbursable to clientNot reimbursableReimbursable using same guide-lines as if working in home office during the weekendSame as 4Full airfare reimbursable to clientRoom charge fully reimbursable if stay is at same hotel used during weekReasonable meals cost for Bain staffHotel and meals costs cannot exceed cost of return airfare with no Saturday stayover; no entertainment or car rental costs are reimbursableSituationAirfareHotelMealsNotes4.5.6.Travel Related Cases (2 of 4)Expense Policies51Ethics & Prof. Standandards
52. Bain staff needs to be in client city (A) on Friday and Monday - he/she elects to fly to city (B) (not home city) for a partyBain staff needs to be in client city (A) on Friday and Monday - he/she has “significant other” travel to (A) in place of traveling homeSame as 8., except eight hours of work each dayCost of airfare reimbursable to client up to the cost of airfare to fly to home cityNot reimbursableNot reimbursableTime spent in city (B) is personal and cannot justify stay in city (B) to client. Therefore, hotel meals and other non airfare costs are not reimbursableOnly the airfare cost of Bain staff is reimbursableRoom charge for Bain staff is fully reimbursable if stay is at same hotel used during weekReasonable meals cost for Bain staffBain staff’s hotel & meals costs cannot exceed cost of return airfare with no Saturday stayover; no entertainment or car rental costs are reimbursable. Costs of any “significant other” (i.e. spouse, friend, children, etc.) cannot be justified as a business expense to client or IRS. Costs are personal and as such are not reimbursableSame as 8.Same as 8.Same as 8.Same as 8.SituationAirfareHotelMealsNotes7.8.9.Travel Related Cases (3 of 4)Expense Policies52Ethics & Prof. Standandards
53. Same as 9., except spouse and children fly outTravel Related Cases (4 of 4)Bain Boston staff needs to fly to London for client meeting. Staff asks if they can travel coach class with their spouse versus alone in business class if the cost of two coach tickets is less than the cost of one business class ticketOnly the airfare cost of Bain staff is reimbursableOnly the hotel cost of Bain staff is reimbursableOnly the meals cost for Bain staff is reimbursableCosts of any “significant other” (i.e., spouse, friend, children, etc.) cannot be justified as a business expense to client or IRS. Costs are personal and as such are not reimbursableSame as 8.Same as 8.Same as 8.Same as 8.SituationAirfareHotelMealsNotes10.11.Expense Policies53Ethics & Prof. Standandards
54. Work circumstances require being in the office extremely early/late (i.e., before 7:00 am or after 8:00 pm). Total hours worked must exceed 11 hoursLocal Transportation and Meals Cases (1 of 2)Work circumstances require being in the office on the weekend or on a holidaySame as 1.Same as 1.Reasonable meal costs will be reimbursed if required to work through lunch or dinner timeReasonable parking costs will be reimbursedReasonable taxi fare or Limo costs (if less than or equal to taxi fare) to/from home/office will be reimbursedReasonable dinner costs for late work will be reimbursedSituationParkingTaxiMealsNotes1.2.Car RentalSame as 1.Not reimbursable for local travel (including mileage for use of personal automobile)Expense Policies54Ethics & Prof. Standandards
55. Cars should only be rented when local transportation is not available. Employee should generally rent “mid-sized” or smaller models from Bain & Company’s primary or secondary vendorsTraveling (not locally on behalf of the client or firmLocal Transportation and Meals Cases(2 of 2)Business use of personal car while traveling (locally) on behalf of client or firmSame as 1.N/ASame as 3.IRS mileage rate determines reimbursement for business use of personal car. Gas for personal car is not reimbursableSame as 1.Reasonable taxi fare between any combination of the following: home airport, client/other Bain office or hotel will be reimbursedReasonable meal costs will be reimbursed while travelingSituationParkingTaxiMealsNotes3.4.Car RentalCar rental for local travel is generally not reimbursable. Staff assigned to local cases who do not own a car should obtain approval of the case manager or VP for car rentalEmployee should not decline Loss Damage Waiver if renting from any vendor other than Bain & Company’s primary or secondary vendorsExpense Policies55Ethics & Prof. Standandards
56. Cellular phoneTelephone Charges CasesHome phoneSame as 1.Same as 1.Same as 1.Not reimbursableNot reimbursableNot reimbursableReimbursable (detail of calls required as back up)SituationSet Up CostPurchase & InstallationBusiness CallsMonthly Service FeesNot reimbursable unless business can make up more than 95% of total cost of callsExpense Policies56Ethics & Prof. Standandards
57. Case Team EventsEvents/Entertainment CasesEntertainmentClient must be in attendanceMost case team members must be present
Cost is applied to case team event budget, not billed to client
Must be submitted to Accounts Payable (can not be included on expense form)
Original receipts required for all expenses related to case team eventsSituationGuidelines for ReimbursementHotel MoviesNot reimbursableMissed Social EventsIf work circumstances prevent you from attending a pre-paid social event, Bain & Company will reimburse you for your net loss. VP approval required. Should be billed to Bain. Contact Finance T&E group for case codeGiftsTo:
a) co-workers in consideration of work performed are not reimbursable (contact Human Resources)
b) clients may be reimbursable with VP approval (should not be charged back to the client)Unexpected Extended StaysIf work circumstances require an unexpected extended stay at the client location; reasonable laundry/dry cleaning/valet costs are reimbursable. However, items of clothing purchased when traveling are not reimbursable. This includes replacement of lost or stolen items, as well as clothing purchased as a result of an unexpected trip.Expense Policies57Ethics & Prof. Standandards
58. AgendaCompliance and Introduction
Sources of additional information58professionalstandards
59. Sources of Additional InformationBain Intranet
Hard copy of Intranet Pages in Library
Local office Professional Standards Manager
Professional Standards Program Director
Peter Aman, Atlanta Office