Recommendation of 4-6 pages to Board of directors

znefungvl
timer Asked: Nov 2nd, 2017

Question Description

Assignment 2 Details

Assignment 2: Board Recommendation and Cost/Benefit Analysis

Read the Ethics Case, The Kardell Paper Co., on pages 213–215 of your text.

Using the Modified 5-Question Approach, analyze the ethicality of the decision to (or not to) incorporate the new technology and make a fully supported recommendation to the Board of Directors. Supplement this analysis with a Cost-Benefit Analysis (CBA) table.

You will need to reference your CBA in your recommendation to the Board. Make sure you thoroughly detail your recommendation with reflections on the consequences of the decision, whether the decision is fair to all, and whether the decision demonstrates the virtues expected of the Board of Directors, taking relevant codes of conduct into consideration, and the company as a whole in terms of social responsibility.

The following information and assumptions should be used to complete the Cost-Benefit Analysis:

  • Annual Revenues from the mill average 625 million.
  • Profit margin from the mill is approximately 11%.
  • Implementing the new technology would take two full years. The first year, the company would operate at 65% capacity (assume the company could maintain the 11% profit margin during reduced operations). During the second year, it would need to be completely shut down. After the two year period, the mill could reopen and operate at pre-implementation levels.
  • Approximate cost of litigation including medical costs for all affected by the contamination, environmental sanctions, legal and court costs, victims’ pain & suffering, and several other items is 1.7 billion. Estimate present value of future costs at 20%.
  • The company would spend approximately 4 million in hiring, onboarding, and training new employees after reopening as a result of several of their existing employees having to seek employment elsewhere during the shutdown.
  • As a result of the layoffs and shut down, the local economy would suffer greatly. The community would be forced to implement a 3 year tax on all local business profits of 5%. The tax would be enforced for 3 years beginning after the reopening of the mill. (Assume pre-implementation profit margins when calculating this and exclude all other costs and taxes when preparing this analysis.

Your recommendation should be addressed to the Board of Directors. It should be 4-6 pages long (including the CBA and a reference page). Your paper should be APA compliant.

See the Assignment Directions and Grading Rubric for details.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors