Kardell Paper Company Ethics Case Study

1301 Words Invalid date 6 Pages
Presentation of the CEO's Position As the CEO of Kardell Paper Company, it has been brought to my attention that there is a link between the sonox contamination in the Cherokee river and high incidences of miscarriages, birth defects, and respiratory disorders in the community (Brooks, 2007). According to Kardell’s legal counsel, there is not sufficient evidence tying the two together, but there is a possibility that the sonox is the cause of the health problems that is on the rise and could be proven later. In 1985 a water quality test was performed by a student which strongly suggests that Kardell is a main contributor to the contamination and pollution of the Cherokee River by sonox discharge (Brooks, 2007). Sonox is an …show more content…
Kardell Paper Company has always been reactive rather than proactive. Legal counsel insists that it is time for a change. A proposal was submitted by Mr. Green indicating an estimated cost of $70 million dollars to refit the plant with a technology that will eliminate the sonox contamination. “The new technology will allow the plant to operate in a “closed cycle” and also allow chemical producers to purchase reclaimed material, making the procedure more cost effective in the long term” (Brooks, 2007). Though refitting the plant will significantly reduce production for approximately one year, and will most likely require the plant to close for an additional year. The impact that will be caused by refitting the plant with the new technology is a short term loss of revenue and wages. While on the other hand, should Kardell Paper Company decide to delay or wait until the Ministry of Environment concludes their investigation, the possibilities of paying higher impending costs are inevitable. The presentation submitted by the Kardell Legal Counsel indicate that the implementation of the new technology should be done to prevent future litigations that would cost more than refitting the plant. The next stakeholder presentation was submitted by the City of Riverside and its Residents. The community is gravely concerned about the contamination in the Cherokee river that inflicts serious