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POLS 3470 (45)
Tim Mau (45)
Lecture 5

pols 3470 UniRoyal Case week 5.docx

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Political Science
POLS 3470
Tim Mau

Uniroyal Chemical in Elmira Government decision-making processes: - MOE refusal to operate containment wells - governments are often faced with difficult decisions because of conflicting advice - power of government advisory committees – threat of negative publicity - MOE requirement of public hearings for incinerator - governments have significant discretionary powers - government strategies can change because of public pressure - had a lot of power in some of the decisions - MORE emergency directive placing limit of .5 PPB in NDMA discharges from Elmira STP - governments can move quickly - distrust can lead to decisions that have negative outcomes for industry/business - change in government employee who communicated with company changed relationship, less communication Business and Government decision-making processes: - governments are expected to consult widely and perhaps create advisory committees. Business can act without as much consultation - governments have many more, often conflicting objectives, compared to business - government objectives: 1) protect ecological environment 2) maintain credibility of regulations 3) maintain credibility of consultative committees 4) minimize confrontation with other levels of government 5) minimize health risks from industrial effluents 6) ensure adequate water supplies 7) minimize expenditures on litigation/cleanup 8) minimize critical media coverage 9) minimize public concern about the health risks of drinking water - Uniroyal objectives: 1) to maximize profits 2) to be seen as a responsible corporate citizen - government problems tend to be more complex than business threats/opportunities of decisions for Uniroyal - containment wells - threat to plans for containing contamination - opportunity to put MOE ‘on the hook’ for cleanup costs - public hearings - threatened plans to install incinerator, which would lead to increased costs - emergency directive - threatened Uniroyal’s corporate strategy & the company’s reputation (social responsibility, employee morale, ability to attract employees, investors & customers) “Responsible corporate citizen”? - equitable treatment of various stakeholders: + (positive) shut down production to respond to smell complaints - (negative) attempted to eliminate CEAC rep on TAC - only approached MOE not CEAC about incinerator plans - measurment/review systems consider managerial handling pf public issues not just profits: + a company operator was disciplined for failing to report a spill of wastewater - company modifies activities in response to changed public policy conditions: + generally changed waste disposal practices in response to new government guidelines/regulations - company supports socially desirable activities with no immediate financial return: + voluntarily spent $2 million to replace open-air lagoons with above-ground storage tanks, thereby reducing odors and preventing environmental contamination + responded to odor complaints by stopping production, resulting in considerable losses + contributed $10,000 to local park, sponsored local sports groups, made its staff and firefighting equipment available to the local volunteer fire department + AS OF 1983, SPENT $7 MILLION ON POLLUTION CONTROL, MAKING ELMIRA'S ENVIRONMENTAL OPERATING COSTS THE HIGHEST PER POUND OF PRODUCTS PRODUCED IN ALL OF THE COMPANY'S FACILITIES THROUGHOUT THE WORLD (FROM 1984 TO 1990 SPENT $11 MILLION ON ENVIRONMENTAL CLEANUP). - employees participate in community development + staff available to local volunteer fire department - company executives stand by commitments: - (negative) form the perspective of Salbach of MOE, the company failed to stand up to a commitment to keep the plant shut down so as prevent NDMA discharges - company executives listen and are receptive to information from outside the company: - company attempted to eliminate CEAC representative on TAC COMPANY EXECUTIVES ARE A
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