Analyze the following case carefully and answer the questions that follow: The Government of Nepal launched the Mid-Hill Highway Project, a…
BBA Business Ethics and Corporate Governance · 2025 · Solved Question with Answer
Analyze the following case carefully and answer the questions that follow:
The Government of Nepal launched the Mid-Hill Highway Project, a long-awaited infrastructure initiative intended to connect rural communities with urban centers, reduce travel times, and stimulate local economies. A leading construction company won the contract, with a clear condition: it must comply with environmental regulations, especially regarding riverbed material extraction and the protection of nearby communities.
However, as construction advanced, the company faced rising costs, frequent delays from monsoon landslides, and political pressure to complete the project before the upcoming elections. In an attempt to save time and money, the company began extracting sand and gravel illegally from nearby rivers, far beyond the permitted limits. This resulted in severe soil erosion, destruction of farmland, and the displacement of local families.
When criticized by environmental activists, company officials argued that "national development requires sacrifice", claiming that short-term environmental harm was justified by the long-term benefits the highway would bring. Some government officials tactly endorsed this strategy, seeking expeditious completion of the project for political gain. However, the affected communities launched protests, asserting that the project had sacrificed their lives and livelihoods for political and corporate gain.
The case illustrates a deep ethical dilemma: should companies and governments prioritize deadlines and cost-efficiency, or should they uphold their ethical responsibility to protect the environment and communities? This dilemma reflects the larger issue of balancing economic development with sustainable and ethical practices in Nepal.
Questions:
a. What is the central ethical dilemma faced by the construction company?
b. Was the company's decision justifiable from a utilitarian perspective? Why or why not?
c. How could Corporate Social Responsibility (CSR) principles have provided a more ethical approach in this case?
d. If you were the project manager, what strategy would you adopt to balance profitability, deadlines, and community well-being?