Case 27: Safety? What Safety?
1. Who are the stakeholders in this case, and what are their stakes?
This is a useful case to demonstrate a variety of stakeholders’ stakes. Have the students comment
2. What social responsibility does the firm have for the environment? How would you assess the
firm’s CSR using the four-part CSR definition presented in Chapter 2?
The company appears to be meeting its economic responsibilities. It may need to think of these
in a long-term perspective rather than just a short-term perspective. The long-term perspective
may argue for upgrading facilities now. The company is meeting its legal responsibilities. To
3. Identify the different competing “standards” at issue in this case. Which standard seems most
defensible for this company considering all factors?
The company is following the standards set by the federal government, but it is not meeting
industry standards. The company’s main arguments for not meeting industry standards are that it
would be costly and that its closest competitor is not meeting industry standards either. However,
4. How should Kirk reconcile his own thinking with the thinking being presented by the firm’s
management?
Kirk may look at the decision the way his superiors are looking at it—from a short-term
5. What should Kirk do? Why?
Kirk is not presently in a position to dictate corporate policy. While he has concerns, he must
also look at the “big picture.” The company will inevitably need to increase their waste treatment
capacity, but they need to do this in such a way as to still maintain their responsibilities to the