Question

In: Operations Management

Assume you are a shareholder for a manufacturing company in a small town far from your...

Assume you are a shareholder for a manufacturing company in a small town far from your home. Would you be willing to trade polluting the environment in that one town for an increase in firm profits? Explain for me why or why not. If the CEO of the company decided not to pollute the environment and profits decreased as a result, how should the firm market that decision to you and other stakeholders? What info is needed?

Solutions

Expert Solution

Explanation:

No, I would as shareholder/stakeholder would not be ready to pollute the environment in that village for an increase in profit of the company.

- Many people from that village would be worker and customer for the company and if as a stakeholder I would not care for them than it will be an unethical act for just for the sake of some profit.

The company also have a corporate social responsibility for society so under that guidelines it's not possible to make environment polluted in that village and CEO would have to explain that to stakeholders that its necessary to take care of environment and society as a whole and its moral duty of all organizations to take care of the environment and find the certain sustainable process to reduce emission and save the environment.

-The emission level of the company and what kind of greenhouse gas is organization emitting is required to explain to regulatory agencies to curb the pollution and change the production policies to keep the environment clean and intact.


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