Question: Norwik Construction plc is a large construction company involved in multiple large contracts around the world. One contract to build three stadiums is being undertaken

Norwik Construction plc is a large construction company involved in multiple large contracts around the world. One contract to build three stadiums is being undertaken by the Australasian division. Each stadium has an individual contract price. Jim Norwik who is the great-grandson of the founder is in charge of that division. He is concerned that the first stadium is costing more than is included in the tender estimates. Rather than recognise an immediate loss on the contract, he orders his subordinates to charge some of the materials for stadium one to stadium two which seems to be on target.
Discuss the consequences of Jim Norwik's actions for Norwik Construction plc and the likely impact on the behaviour of Jim Norwik's subordinates.

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