Lorman Lumber Case Study

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Case Study 2 What “Wood” You Do? Background/Summary: Lorman Lumber is a publicly traded company with widely held shares. Its Yamica location in rural Oregon is one of the company’s largest. The purpose of the plant is to process and treat wood, which it does through a number of facilities. The Sawmill began producing lumber products in 1947, which it does by peeling, milling, and chipping raw wood. Lorman has a known record of producing good profits, and will often pay out generous performance-based bonuses to executives. Although the Yamica plant is somewhat outdated, it is still considered to be efficient and profitable. Starting in 1968, the company began using new methods to condition and pressure-treat wood products through the…show more content…
Did Lorman’s wastewater emissions play any role in this tragic outcome?” Although these are Ben’s thoughts, this is not definitely the case; there is no definite proof that there is a link between the chemicals in the wastewater emissions and health problems. Ben must put aside his our pre-conceived notions and work objectively on the data. This is another good example of his responsibility to use integrity when making a decision to avoid conflicts of interest. 4. To the board of directors: o “Although collected with meticulous care, the data Ben had painstakingly gathered was composed only of educated estimates, leaving him with an uneasy feeling.” Although Ben may want to present his data in a way that supports his decision, it is important that his audiences know the legitimacy of his data. It is his responsibility to communicate information fairly and objectively and to disclose any deficiencies in the data. 5. To shareholders of Lorman Lumber Co: o “Company and shareholder profitability would certainly be affected.” In order to support Ben’s credibility, it is important that he disclose all relevant information to the investors of Lorman Lumber Co. Although shareholder equity would most certainly be affected by such a significant capital investment and reduction of revenue in the short run, Ben could be ensuring shareholder value over the long run by improving productivity, lowering negative

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