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Category: Business and Industry

Date Submitted: 02/10/2013 05:21 PM

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Part 1: The Wendy Simpson Case

Key Issues

The following outlines the key issues that must be considered when deliberating over this case:

1) Wendy Simpson is faced with the decision of whether or not to invest in the new technologies that will allow the emissions of a particular toxin in Home Built’s wastewater to be reduced.

2) Home Built must consider whether its obligation is to itself, specifically in having the ability to turn a profit this year, or to the environment and the surrounding communities.

3) Whether the government should, or should not, intervene with regards to all companies’ emissions of toxins into the environment.

Consideration Factors

When making a decision, it is important for Simpson to consider the facts of the case. The three most important facts she must consider are:

1) Simpson has knowledge that current environmental regulations for this toxin are lagging behind scientific evidence. At a nearby university, a scientist states that if emission levels continue at current levels, the fish from the lake will be declared unsafe for human consumption. This means that while Home Built’s current emission levels are within legal limits, it is clear that in the near future the law will change, putting the company at risk with regards to government regulation.

2) If companies in the region do not exercise self-regulation, the government may be forced to intervene, due to public pressure. This would force companies to begin implementing and using the new technology in addition to issuing monthly emission level reports, which are both costly and time-consuming.

3) Should Wendy choose to install the new technology, not only would it put her division over-budget, but it would also jeopardize Home Built’s ability to show a profit this year. This is something she must consider because she must also think of herself, in terms of being able to keep her job.

Primary Stakeholders

1. Environmentalists

While...

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