Date of Award

1990

Document Type

Thesis

Degree Name

Master of Business Administration

Department

Business

First Advisor

Bob Sullentrup

Second Advisor

Joe Ancona

Third Advisor

Robert Peck

Abstract

This thesis will focus on how the environment will impact management decisions. The impact is measured in dollars when possible,

Management needs to have a working knowledge of how their decisions can impact the environment and ultimately the bottom line. The environmental impact ranges from depletion of the ozone to contamination of groundwater. The potential business changes due to the environment cover the range from the planning to the disposal stages of a product and to include shifts in marketing and advertising strategies.

The environment is getting more attention today from the public than at any other time. The public is pressuring politicians to enact laws and enforce stricter environmental standards. Business needs to take heed to the public outcry for cleaner water, air and land.

Fines levied by the Environmental Protection Agency (EPA) in FY 1988 proved to be the biggest year ever on imposing civil judicial and administrative penalties . A company not only needs to take heed to laws that the EPA is presently enforcing, they also have to be concerned about old products that have been disposed of in a defunct landfill that is contaminating groundwater. Regardless of when it was disposed of, a company can be held responsible for the cleaning bills, especially those companies that have "deep pockets".

The study demonstrates, through the use of a spreadsheet, how costly it can be when caught by the EPA for environmental infractions.

The hypothesis in question - Corporate decision makers who fail to comply with environmental laws will experience a loss in revenues - was supported within the context of the study.

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