You are manager at a consumer products manufacturing company. Your company prides itself on ethical treatment of employees and other stakeholders, and much of your business Is dependent on your company and product’s reputation. Recently, the Environmental Protection Agency visited your largest plant and found that you are not in compliance with your water quality permit. Apparently, your plant is releasing more pollutants into a local stream than your permit allows. You are surprised that you learned about this violation from the regulators as opposed to your own employees. You are also surprised to learn that when your competitors face a similar situation. They simply pay the relatively minimal fine each year, as opposed to fixing the problem. You also find that the waterways near your plant are severely polluted by other industries and your comparative contribution to the problem is minimal.

3. What personal and organizational risks are associated with paying the fine versus redesigning plant processes to minimize waste and pollution?


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