new regulations?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Questions for Discussion:

 

What motives would the a company have to install the new technology?

 

What motives would the company have to delay installing the new technology?

 

Why might the companies in this region prefer for the government to impose new regulations?

 

 

The Polluter's Dilemma: A Short Case Study
Mrs. Ryanne Backson is the environmental compliance manager for a small plastics
manufacturing company. She is currently faced with the decision whether or not to spend money
on new technology that will reduce the level of a particular toxin in the wastewater that flows out
the back of the factory and into a lake.
The factory's emission levels are already within legal limits. However, Backson knows
that environmental regulations for this particular toxin are lagging behind scientific
evidence. In fact, a scientist from the university had been quoted in the newspaper
recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers
in the area might soon have to be declared unsafe for human consumption.
Further, if companies in the region don't engage in some self-regulation on this issue,
there is reason to fear that the government – backed by public opinion –may force
companies to begin using the new technology, and may also begin requiring monthly
emission level reports (which would be both expensive and time consuming).
But the company's environmental compliance budget is tight. Asking for this new
technology to be installed would put Backson's department over-budget, and could
jeopardize the company's ability to show a profit this year.
Questions for Discussion:
What motives would the company have to install the new technology?
What motives would the company have to delay installing the new technology?
Why might the companies in this region prefer for the government to impose new
regulations?
Note: Names/location were changed to hide the identity of the characters
Transcribed Image Text:The Polluter's Dilemma: A Short Case Study Mrs. Ryanne Backson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. The factory's emission levels are already within legal limits. However, Backson knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption. Further, if companies in the region don't engage in some self-regulation on this issue, there is reason to fear that the government – backed by public opinion –may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). But the company's environmental compliance budget is tight. Asking for this new technology to be installed would put Backson's department over-budget, and could jeopardize the company's ability to show a profit this year. Questions for Discussion: What motives would the company have to install the new technology? What motives would the company have to delay installing the new technology? Why might the companies in this region prefer for the government to impose new regulations? Note: Names/location were changed to hide the identity of the characters
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