Overbilling and ethics

Agency Leo Burnett settled an overbilling case with the Army, agreeing to $15.5 million in cash and credit for work performed.
What are an organization's ethical duties to its clients? How are those duties communicated and reinforced? What does this case do to Burnett's reputation, if anything?

Don't trash your client's hometown

An ad exec gets himself in a little bit o' social media trouble.
What is his responsibility to his client? Does the social media space differ at all from real space in how we should comport ourselves? If so, how so? If not, why not? Should this agency have lost the business? What lapses should cost us our jobs?