Aaron Feuerstein-a Socially Responsible Owner Essay Example

align="justify">Government and overseas contracts countered the decline in sales in the competitive domestic market, and Malden Mills appeared to be recovering from its financial setbacks as the firm entered the twenty-first century. Aaron Feuerstein’s commitment to both the company’s economic and social mission and goals appeared to have emerged from ashes intact.

Questions: 

1. Which principle of social responsibility was the basis of Aaron Feuerstin’s actions in the case? Give evidence from the case.
2. Which arguments for CSR support Feuerstein’s actions, and which arguments against CSR raise questions regarding his actions?
3. Was Feuerstein being responsible to his multiple stakeholders in this case?

Little Enough or Too Much Bryan was recently hired by a large chemical company to oversee the construction of production facilities to produce a new product. X Chemical developed a new industrial lubricant that it felt it could produce at a price close to those of its competitors. The plant to manufacture the lubricant was built on land adjacent to the East River. X chemical had already applied for and received the necessary permit to dump waste materials from the process into the river.

Several other chemical plants in the nearby vicinity are also releasing waste materials into the river. Bryan is concerned because the government agency that oversees the permit process granted X chemical a permit to release more waste into the river than previously anticipated. An additional stage in the production process that would have reduced the waste and recycled some materials became unnecessary due to the regulatory agency’s decision. Because the additional process would have added capital and production costs, it was not built as part of the existing plant. Yet,

X chemical has always stated publicly that t would do all that it could to protect the environment from harmful materials.

The company has had mediocre performance for several quarters, and everyone is anxious to see the new product do well. Tests have shown it to be a top-quality industrial lubricant that can now be produced at a cost significantly below those of their competitors. Orders have been flowing in, and the plant is selling everything it can produce. Morale in the company has increased significantly because of the success of the new product. Due to the success of the new product, all employees are looking forward to sizable bonuses from the company’s profit sharing plan.

Bryan is upset that the company failed to build the additional stage on the plant and fears that the excess waste released today will cause problems for the company tomorrow. Bryan approaches Bill Gates, the plant supervisor, with his concerns. Bill replies, “It’s up to the government agency to protect the river from excess waste, and the company only had to meet the agency’s standards. The amount of waste being released poses no threat to the environment, according to the agency. The engineers and chemists who originally designed the production process must have been too conservative in their estimates.

Even if the agency made a mistake, the additional recycling and waste reduction process can be added later when it becomes necessary. At this point, building the additional process would require costly interruptions in the production process and might cause customers to switch to our competitors. Hence, environmental group might become suspicious if the production was stopped to add the

additional process-They might see it as an admission of wrongdoing. No one in the company wants to attract any unwarranted attention from the environmental groups. They give us enough trouble as it is.

The best thing we can do is make money while the company can and deals with issues as they come up. Don’t go trying to cause trouble without any proof. The company doesn’t like troublemakers, so watch your step. You’re new here, and you wouldn’t want to have to find a new job. ” Bryan is frustrated and upset. He can see all the benefits of the new product, but inside he is sure the company is making a short-sighted decision that will hurt them in the long run. The vice president of operations will tour the plant next week, and Bryan is considering approaching the officer with his concerns.