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 contact, 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 reasons for your answer.
1.3 will it be fair to all stakeholders to accept 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 internal and external to the company? discuss why you think the CEO/ board does not want to disclose the resource limitations facing the company
write 500 words
1.1 Accepting the stadium contract may result in eventual non-compliance with laws and regulations for several reasons. Firstly, the government has been known to prioritize speed and cost efficiency over quality in previous projects. If Dithaba Construction accepts the stadium contract, they may be pressured to cut corners and compromise on the quality of work in order to meet the government's demands. This could result in the company failing to meet building codes and safety regulations, leading to potential legal action and damage to their reputation.
Secondly, the government has a history of corruption and unethical practices in its procurement processes. If Dithaba Construction accepts the stadium contract, they may become complicit in corruption and bribery, which is illegal and unethical. This could put the company at risk of facing legal consequences and tarnishing their brand image.
1.2 Accepting the stadium contract may not meet company standards as Dithaba Construction prides itself on delivering high-quality projects that meet ethical and safety standards. If the company accepts the stadium contract and is forced to compromise on quality to meet the government's demands, it would be going against its core values and principles. This could damage the company's reputation and erode trust with stakeholders, leading to long-term negative consequences for the business.
1.3 Accepting the stadium contract may not be fair to all stakeholders, particularly employees and local communities. Employees may be put under pressure to cut corners and compromise on safety in order to meet project deadlines, putting their well-being at risk. Local communities may also be unfairly treated if the project negatively impacts the environment or their quality of life. For example, if the stadium construction leads to noise pollution or disruption to local businesses, the community may suffer without fair compensation or consideration from Dithaba Construction.
1.4 The acceptance of the stadium contract may not be disclosed to parties internal and external to the company due to resource limitations. The CEO/board may be hesitant to disclose the full extent of the company's financial constraints and operational challenges, as this could create uncertainty and unrest among employees and investors. By withholding this information, the company may be able to maintain a facade of stability and profitability, even if accepting the stadium contract puts them at risk of financial strain and operational difficulties.
In conclusion, the decision to accept or decline the government's stadium tender is a complex one that requires careful consideration of ethical, legal, and practical implications. By using the four criteria outlined above, Dithaba Construction can make a more informed decision that aligns with its values and responsibilities as a business. Ultimately, it is crucial for the company to prioritize ethical business practices and stakeholder well-being in order to maintain long-term sustainability and success.