Assignment

Analyze the following ethical situation using YOUR ethical philosophy. Read the situation and then in your answer, explain why this is an ethical situation, what the "issues" are, and how an "ethical" person would resolve them. Explain how YOUR ethical philosophy statement has helped you read a conclusion about how to resolve or analyze this situation.

Construction companies must usually engage in competitive bidding for their contracts. This practice demands that they anticipate every material and labor cost months and even years ahead and commit themselves to complete a project for a specified amount of money. A mistake in calculating or a failure to anticipate a significant increase in prices can bankrupt a company.

Consider the situation of the combination of the unexpected increase in lumber prices due to the war in Iraq and Afghanistan with multiple hurricanes in the United States in the past few years.

1. Would it be ethical for a company who had won a bid for a construction job before the increase in lumber prices, to use substandard materials in order to offset the increase in lumber prices after the fact?

2. Would it be ethical for a customer to hold the contractor to the original bid after unplanned and unprecedented lumber price increases occur, knowing it will cause the contractor to go bankrupt, or do the job at a huge loss?

3. How would your answer to #2 change if your customer was Donald Trump or a community pantry feeding program for the homeless. Explain.