click above Link to get this A Graded Assignment
Let us know if we can assist you with any thing else today
Thank you
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 operation 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 ad dit/lude 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.
