dithaba construction faces a difficult decision: should it go for the option to aceept the governments stadium tender, or should it go for the option to decline the tender? one decision-making procedure that can help businesses in making ethically sound decisions involves a set of four criteria against which the decision can be measured. accordingly the board can ask itself the following four questions:
1.1 although it would be legal to accept the stadium contract, describe at least two reasons why acceptance could result in eventual non-compliance with laws and regulations.
1.2 will accepting the stadium contract meet company standards? provide at least two reasons for your answer
1.3 will it be fair to all stakehoders to aceept the stadium contract? state at least two stakeholders and how they might be unfairly treated by Dithaba if the company accepts the stadium contract.
1.4 can the acceptance of the stadium contract be disclosed to parties interanl or external to the company? discuss why you think the CEO/board does not want to disclose the resource limitations facing the company
1.1 Accepting the stadium contract could result in eventual non-compliance with laws and regulations if the company is unable to meet the quality standards required by the government. This could lead to legal issues and penalties for Dithaba Construction. Additionally, if the company cuts corners or uses unethical practices to complete the project on time and within budget, it could also lead to non-compliance with laws and regulations.
1.2 Accepting the stadium contract may not meet company standards if the project puts strain on the company's resources and manpower, affecting the quality of work on other projects. Furthermore, if the project does not align with the company's values or mission, it may not meet company standards.
1.3 Accepting the stadium contract may not be fair to all stakeholders, such as employees who may be overworked or underpaid to meet the demands of the project. It could also be unfair to subcontractors or suppliers who are not paid fairly or on time due to resource limitations caused by the stadium project.
1.4 The CEO/board may not want to disclose the resource limitations facing the company because it could affect their reputation and credibility in the industry. Additionally, disclosing these limitations could lead to a loss of confidence from stakeholders such as investors or clients, potentially impacting the company's future projects and opportunities.