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How to maximize jay-mart profits

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Question: You are assigned by your employer, Jay-Mart Corporation, an international discount retailer, to supervise the construction of ten new retail superstores in Shanghai, China. All construction is being done by a Chinese-owned contractor in compliance with JayMart's construction standards. After an earthquake in China kills over 70,000 people, China's legislature passes a statute requiring new buildings to have a greater ability to withstand a large earthquake. The Chinese contractor has approached you and suggested that the new Chinese construction standards are unnecessarily high, that Jay-Mart's construction standards are sufficient 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 profits?

Reference no: EM131657014

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