Make a Decision: Analyze CSR initiatives at Gree Manufacturing (from Chapter 14)Obj. 5 Green Manufacturing is a traditional manufacturing company located in the midwestern United States.  The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:  Initial Added CostVariable CostVariable SavingsRecycle and reuse production materials$    5,000$0.10 per lb. of recycled material$0.15 per lb. of recycled materialAdd solar panels as a source of power  700,000$ 1,000 per year$ 33,000 per yearReplace assembly room light fixtures with natural light  120,000$ 180 per month$ 220 per month The recycling activity would carry on indefinitely.  The solar panels would have a useful life of 30 years.  The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.a. Identify which CSR activities Green Manufacturing should implement.b. For each CSR activity you recommend, identify an appropriate related performance metric.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter14: The Balanced Scorecard And Corporate Social Responsibility
Section: Chapter Questions
Problem 3MAD: Analyze CSR initiatives at Green Manufacturing Green Manufacturing is a traditional manufacturing...
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Make a Decision: Analyze CSR initiatives at Gree Manufacturing (from Chapter 14)Obj. 5 Green Manufacturing is a traditional manufacturing company located in the midwestern United States.  The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:  Initial Added CostVariable CostVariable SavingsRecycle and reuse production materials$    5,000$0.10 per lb. of recycled material$0.15 per lb. of recycled materialAdd solar panels as a source of power  700,000$ 1,000 per year$ 33,000 per yearReplace assembly room light fixtures with natural light  120,000$ 180 per month$ 220 per month The recycling activity would carry on indefinitely.  The solar panels would have a useful life of 30 years.  The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.a. Identify which CSR activities Green Manufacturing should implement.b. For each CSR activity you recommend, identify an appropriate related performance metric.
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