CASE STUDY - 1

In 1962 the Atlantic Cement Company began operating a cement plant outside of Albany, New
York. The Company employed over 300 local residents and by 1970 had invested $45 million in
the plant. The plant emitted large amounts of pollution, however, as well as causing constant
vibrations and loud noise. Local residents filed suit against the Company, claiming that the loud
noise and the vibrations were harming their health and property. The suit asked that the court
issue an injunction that would close down the plant until the pollution and vibrations could be
eliminated. The Company was already using the best available technology, which meant that the
suit was asking that the plant be closed down indefinitely. The court refused to issue the
injunction, reasoning that the costs of closing the plant outweighed the benefits to be gained by
the residents. Instead of closing the plant, the court ruled that the cement company should pay
residents a one—time fee to compensate them for ongoing harms. This fee was calculated to be a
fair market price for what the residents would receive if they were inclined and able to rent their
property.

QUESTIONS:
1. Write the summary about the case
2. Was the decision of the court in this case fair? If so, why? If not, why not?

CASE STUDY - 2

QUESTIONS:
1. What kind of value creation does this company do?
2. Donating to foundations is one kind of promotions. Your view?
CASE STUDY - 3

Jonica Gunson is the environmental compliance manager for a small plastics manufacturing
company. She is currently faced with the decision whether or not to spend money on new
technology that will reduce the level of a particular toxin in the wastewater that flows out the
back of the factory and into a lake. The factory's emission levels are already within legal limits.
However, Jonica knows that environmental regulations for this particular toxin are lagging
behind scientific evidence. In fact, a scientist from the university had been quoted in the
newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and
rivers in the area might soon have to be declared unsafe for human consumption. Further, if
companies in the region don't engage in some self-regulation on this issue, there is reason to fear
that the government — backed by public opinion — may force companies to begin using the new
technology, and may also begin requiring monthly emission level reports (which would be both
expensive and time consuming).But the company's environmental compliance budget is tight.
Asking for this new technology to be installed would put Jonica's department over-budget, and
could jeopardize the company's ability to show a profit this year.

Questions:
1. What motives would the company have to install the new technology?
2. What motives would the company have to delay installing the new technology?
3. If you were in the place of Jonica Gunson what will be your move?

CASE STUDY - 4

Jack C. Westman, who teaches psychiatry at the University of Wisconsin Medical School,
believes that people should be required to secure a license if they want to become parents.
Securing the license would require that parents be a minimum age (18), that they sign a pledge
not to abuse or neglect their children, and that they complete a certified course in parenting. If
not, then under Dr. Westman’s proposal, the children people bring into the world would be taken
from them, at least until they satisfy the necessary requirements for the parenting license. Dr.
Westman, who works intensively with abusive and neglectful parents in his psychiatry practice,
believes that much abuse and mistreatment would be prevented by his proposal.
Questions
1. Should Dr. Westman’s proposal for licensing parents be adopted? If so, why? If not, why not?