Ivey Publishing
Las Vegas Construction: Ethical Contracting
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5 pages (5 pages of text)
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Case (Field)
In December 2015, the head of supply chain management (SCM) at Las Vegas Construction Inc. was tasked with reducing operating costs by 25 per cent in order to deal with the fallout in Nevada’s construction industry from the global economic downturn. The SCM head had engaged the manager in charge of subcontracting to help with cost reductions. The subcontracting manager did find a way to reduce costs, but it turned out to be a questionable way. He had tipped off the three subcontractors with whom he had been working closely by providing them with confidential information regarding a target bid price for the labour sourcing process. When the bid prices were disclosed, even though Las Vegas Construction Inc. had reached its original cost savings goal, the SCM head had mixed feelings about the process. He wondered how to address this potentially unethical situation, and whether he should inform his superiors about it.
Learning Objective:
This case is suitable for use in any undergraduate or graduate business course that deals with issues of ethical decision making, strategic decision making, and stakeholder relationship management, including human resource management, organizational behaviour, strategic management, business ethics, or corporate social responsibility. The case will better equip students to do the following:
  • Recognize ethical issues in business deals and decisions.
  • Identify multiple stakeholders involved in and/or affected by business decisions.
  • Analyze the necessary steps for ethical decision making.
  • Determine the best ethical decision using sound moral justification.
General Management/Strategy
United States, Large, 2015
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$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Translations: Simplified Chinese (5 pages)
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