Theme 3: Ethics

As a leader, you need to reflect your values in order to connect the ethcial component to your decision making skills

Please, first look at the short video lecture on what is understood by ethics (link below)

Ethics video

After watching the video, read the ethical case below. Please reflect on your thoughts on the case in the chat section below. 

The Hardwood Construction Company was awarded 8-million-euro project to build an office building to the Capital area. The liquidated damages were 3,000€/calendar day. A time extension was unlikely. The project involved considerable amounts of wood structures, so Hardwood solicited bids from various construction subcontractors. The low bidder was Mable Tree woodworks. Their bid was 8% below the next lowest bid. After it was determined that Hardwood was the lowest bidder, Developer´s home office managers pressured Hardwood to reduce their bid even further until they were 12% of the next lowest bid. From the beginning, work on the job progressed slowly for a variety of reasons to the point that when Hardwood began, the project was 4 weeks behind schedule. Hardwood made good progress, and after several months, the project was about 3 weeks behind schedule.

In discussions with the Hardwood supervisor, the Developer´s project manager learned that the Hardwood crews were illegal aliens from Country Z. The supervisor indicated that their wages were low by European standards, and that most craftsmen sent money to their families in Country Z who were very poor. European wages were their primary means of subsistence. The carpenters were productive, did high quality work, and caused no disciplinary problems on the job. The Developers project manager was faced with a problem. If he contacted the Immigration Service about the illegal tradesmen, they would be deported. The disruption to the project schedule would be significant, and the Developers liquidated damages would amount to approximately 10,000 €. The home office managers would not be happy at all. Some relevant contract language mentioned: 1. Contractor shall be solely responsible for and have control over construction means, methods, techniques . . .; 2. Art. 3.4.2. The Contractor shall not permit the employment of unfit persons . . .; and 3. Art. 3.7.2. The Contractor shall comply with and give notices required by laws, ordinances, rules, regulations, and lawful orders of public authorities.... A careful reading of these and other clauses of the general conditions is appropriate.

Ethical Decision Making:

 1. What are the negative consequences to Developer if project manager contacts Immigration services (IS)?

2. What are the negative consequences to Developer if project manager doesn’t contact IS?

3. What are the negative consequences to Hardwood if project manager contacts IS?

4. What are the negative consequences to illegal immigrants and their next of kin if project manager contacts the IS?