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You are assigned by your employer, Jay-MartCorporation, an international discount retailer, to supervisethe construction of ten new retail superstoresin Shanghai, China. All construction is being done bya Chinese-owned contractor in compliance with Jay-Mart's construction standards. After an earthquakein China kills over 70,000 people, China's legislaturepasses a statute requiring new buildings to havea greater ability to withstand a large earthquake. TheChinese contractor has approached you and suggestedthat the new Chinese construction standards are unnecessarilyhigh, that Jay-Mart's construction standards are suffi cient to protect against any earthquake likely to occur, and that the cost of complying with the new Chinese construction standards will increase construction costs 20 percent. What do you do if you believe that ethical behavior requires you to maximize Jay-Mart's profi ts?

Operation Management, Management Studies

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