The Kardell paper mill was established by the Kardell family near the Cherokee River in southeastern Ontario. The Paper mill is a successful company that generates a revenue of 1. 7 billion per year and its original mill employs 500 people within the Riverside community. The investors, employees, legal team and residents have brought up issues concerning Kardell original paper. As CEO of Kardell Paper Company, I would like to address all of the issues and/or concerns that have been presented by the legal team, employees, investors and residents of Riverside concerning the Kardell Paper Company using the chemical Sonox.
I would first like to state that Kardell is a company that is very much concerned with everyone’s wellbeing and hope that our decision is a happy median for everyone. I would like to give a little background on everyone’s concern and then address them all before giving my decision. The residents of Riverside concern is that the chemical Sonox being dumped into the river is possibily causing an increase in health conditions; however that the opportunity to recycle the water waste would result in a layoff that could not be afforded by the community.
Their suggestion is to continue research on the chemicals being dumped into the river and how they are related to health conditions. As research continues, if enough evidence shows that waste is linked to health conditions, reconsider the renovations of the plant. The investors of Kardell Paper Company concern is the potential danger if there is link between Sonox and health issues in the community. Another concern is that the company can be faced with lawsuits if link is proven to be true. Their suggestion is to retrofit the plant to incorporate the new technology which will allow waste to be reclaimed and sold to chemical producers.
The employees of Kardell Paper Mill concern is levels of the chemical Sonox that is being allowed to get into the water and the atmosphere over the past two years and the affects it may have on the community and the employees. Their suggestion is to have not only Kardell Paper Company tested but all the factories in the area for Sonox. Once all companies have been tested, find a solution depending on the results of the test. The legal team concern is that there has not been definite proof that Sonox is the cause of the high incidence of miscarriages, birth defects and respiratory conditions in Riverside.
Kardell is in compliance with existing regulatory emission controls and currently no regulations exist regarding Sonox. Their suggestion is to consider using another chemical instead of Sonox and explore the cost effectiveness of building a new facility that uses recycling technology. As CEO along with the Board of Directors of Kardell Paper Company have decided to continue to collect data and investigate the issue further. Our decision was made based on the application of the five-question Approach: profitability, legality, fairness, impact on rights and does it contribute favorably to sustainable development and/or survivability.
Profitability The Kardell Paper mill will take the necessary steps to upgrade the facility to prevent future spillages. The implementation of retrofitting the existing facility is estimated to cost 70 million dollars. I took in consideration of spending the money now rather than in the future to be profitable to the company. Taking the necessary precautions to upgrade the facility now can and will save the company money in the long run if sonox is proven to be linked with health conditions of the community.
If the health conditions are found to be linked to sonox, the company will face the possibility of being shut down which will not generate any profit at all. The company can also be held liable for many of the health conditions and face with possible lawsuits that may result in a bigger expense than retrofitting the facility. It makes sense to deal with the matter now than in the future. With the new upgrades on the facility, the company will be able make up some of the cost by reclaiming the waste and sell it to the chemical producers. Legality
At this time, the Kardell Paper Mill is in compliance with the government limits and environmental regulations; however we are taking preventive measures to avoid any future lawsuits. Fairness With all fairness to everyone, the Kardell Paper mill is taking precaution by retrofitting the facility. Some may think it is unfair to the employers because this may cause a lay-off. The lay-offs is a short term problem that can be fixed. The company will have to evaluate and offers solutions to employees that would be laid off such as early retirement packages, relocation to different locations and guaranteed employment once the facility reopens.
Is it unfair to know of a possible problem with the chemical sonox and not do nothing about it. We as a company are acting in the interest of everyone. If sonox is ever found to be dangerous, lawsuits and immediate shut down of the company would not be fair to any of us. Business failure is not fair to any of the involved parties. Impact On Rights The Kardell Paper Mill has possibily causing negative effects on their employees and residents of the community if sonox is linked to the health conditions mentioned above. The decision is ethical because we are protecting the company, employees and residents of Riverside.
Does it contribute favorably to substainable development and/or survivability? The Kardell paper mill has generated a revenue of 1. 7 billion per year. As a company with this amount of revenue, it should be its goal to keep the company equipped with the latest technology to keep everyone safe. In order to continue generating revenue the company has to make changes. The decision is going to implement the new technology is ethical and it going to help to avoid any future problems or lawsuits if sonox is ever found to the cause of the related health conditions.
After applying the five-question approach, the Kardell Paper Mill has decided to take the immediate steps to upgrade the facility. Implementing the newest technology will increase the company’s long term profit, help to keep the residents of Riverside and the employees safe and have a positive impact on the reputation of the company. I hope this decision is satisfying to all the parties involved and Kardell Paper mill will try to make this transition as smooth as possible.