Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrial cleaning. The compound is made from a small number of chemical products. One of these raw materials, Chemical X, is bought from a supplier in a developing country. Chemical Xis scarce and is available from only a few global suppliers. In its untreated form, Chemical X is also toxic and can cause serious damage to the health of individuals who are exposed to it. It is also known that the local environment around factories that produce Chemical X are subject to extensive contamination. A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier for the purchase of Chemical X Senior management are aware of the health and environmental risks associated with Chemical X, but did not see that these had any relevance to its own business. The toxic effects of the chemical are eliminated by its treatment in the production process that Quality Chemicals uses to make its own chemical compound. Following a major industrial accident one week ago at the main manufacturing site of the supplier of Chemical X, there has been a widespread and intensive reporting campaign in the press and television. The dangers of Chemical X have become a matter of widespread public debate, and a television program has identified Quality Chemicals as a major user of the product An action group has been formed that seeks to ban the import of Chemical X into the country and for the closure of Quality Chemicals manufacturing sites. The board directors of Quality Chemicals Ltd believe that the public concem is excessive and unjustified, but the directors now recognise that they should have done much more to report on the risks from Chemical X and the measures taken to deal with them, in their social and environmental report m Explain three alternative courses of action that Quality Chemicals may take in response to the damaging media reports about its association with Chemical Xand its social and environmental

Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrial cleaning. The compound is made from a small number of chemical products. One of these raw materials, Chemical X, is bought from a supplier in a developing country. Chemical Xis scarce and is available from only a few global suppliers. In its untreated form, Chemical X is also toxic and can cause serious damage to the health of individuals who are exposed to it. It is also known that the local environment around factories that produce Chemical X are subject to extensive contamination. A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier for the purchase of Chemical X Senior management are aware of the health and environmental risks associated with Chemical X, but did not see that these had any relevance to its own business. The toxic effects of the chemical are eliminated by its treatment in the production process that Quality Chemicals uses to make its own chemical compound. Following a major industrial accident one week ago at the main manufacturing site of the supplier of Chemical X, there has been a widespread and intensive reporting campaign in the press and television. The dangers of Chemical X have become a matter of widespread public debate, and a television program has identified Quality Chemicals as a major user of the product An action group has been formed that seeks to ban the import of Chemical X into the country and for the closure of Quality Chemicals manufacturing sites. The board directors of Quality Chemicals Ltd believe that the public concem is excessive and unjustified, but the directors now recognise that they should have done much more to report on the risks from Chemical X and the measures taken to deal with them, in their social and environmental report m Explain three alternative courses of action that Quality Chemicals may take in response to the damaging media reports about its association with Chemical Xand its social and environmental

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 23E: Coyle Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of...

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