The medium-sized manufacturing firm has been in operation for some time. It has been having a healthy cash flow as illustrated in the case study. However, it has neglected one very essential thing. It does not fully honor Corporate Social Responsibility. They discussed the new ultramodern plant with the perspective in mind that it was going to generate more income for the business. Henry, the Controller guided them into understanding how the costs would go up due to the upgrade. Bob, the President, compares his company’s adherence to the industrial laws with its closest competitor. The competitors did not have waste treatment facilities, yet they were operating. Bob’s firm had one, but they needed to upgrade it due to the upcoming ultra-modern project. According to the management, they would only do more if their competitors were doing the same for the environment. They wanted to break the law willingly.
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The company was supposed to meet all the set standards. It could even do more because the federal regulations required were just the minimum standards. With the new plant, they would still comply with federal standards. The federal regulations were supposed to help them understand the importance of obeying the laws. But the industry had fairly high standards, which the environmentalists favored and wanted the federal statutes to have some improvements as well. The regulations and industry standards did not require the company to seek to know what its competitors had done. Rather, it should do its best to meet the required minimum norms and regulations. In observance of Corporate Social Responsibility, the company had to maintain a clean and healthy environment. The company must protect the future lives of its employees and citizens by being first in watching over the environment. The workers and the citizens have to enjoy their environment so that they feel proud.
The company must be answerable to society and the state about its CSR so that the future generation can have a clean and peaceful environment free from germs and wastes resulting from its operations. The firm in question has shareholders or owners, and other stakeholders. It is always important to serve the interest of all stakeholders. The shareholders expect positive results from the business and income in the form of dividends. Everyone needs to observe the government’s regulations. The community expects job opportunities, a clean environment, and good infrastructure. It is important to honor the interests of the firm as it seeks to meet its obligations. The shareholders need their shares to earn an income. Proceeds can only continue to be realized in the long term if the environment remains clean. If one concentrates on the firm and forgets the situation, it could lead to very damaging results.
The management is still grooming Kirk for the position that his senior holds. As a trainee controller, he needs to learn many things that he did not know. It seems like this is one of his first meetings with the management team. He wonders how the presenters translated his records for clear understanding. He needs to channel his concern through his boss, Henry, by first sharing it with him after the meeting. Henry should explain to him the best way to communicate his ideas. Henry might as well understand him and know how to present it to the other management staff. However, Henry may still continue to hold onto the ideas and views accepted in the meeting. Kirk seems to understand better that environmental issues were crucial. He must then find a way of communicating with the Chemical engineer and the President to help them fully grasp what he thinks is the best way forward.