A major paper manufacturing company built a $500 million plant. Unlike some companies, it had been quite careful about the plant’s environmental requirements. It had painstakingly evaluated its obligations and had installed new environmental controls. The company’s environmental manager had worked with the project manager to get the needed permits in time and to be sure that the pollution control technology satisfied everyone’s requirements. Yet a short time after starting production, the boiler supplying electric power and steam failed the environmental compliance tests, and the facility became the subject of an enforcement action.
At a large steel processing company, the plant manager had received yet another proposal to replace another part of the treatment plant. Over the previous several years, the company had been cited for cyanide, zinc, nickel, and arsenic violations one after another. In each case, the environmental manager had suggested his own solutions and had solicited input from the engineering staff. He had also worked with outside vendors and regulatory authorities to find timely solutions. Still, millions of dollars later, here was another problem, and there was no telling when the next one would occur.
In both of these stories, the companies acted in good faith to comply with regulations. Both had done their jobs, yet they failed to prevent the ensuing problems. What went... To read the complete article, login or sign-up using the form below.
Become a premium subscriber today to read this and all MIT Sloan Managmeent Review articles.
Buy this article. Purchase one or more copies of this article in PDF form.
Become a premium subscriber today to read this article and the entire archive of MIT SMR articles.
Upgrade your existing subscription to premium
Sign in if you are a premium subscriber.
Do you subscribe the MIT Sloan Management Review in print? Enter the email address and password you used when ordering. Don't remember? Lookup your subscription account information
- Register for free access to recent articles and the current issue of MIT Sloan Management Review.
- Subscribe and read articles from the past three years online.
- Premium subscription give you access to the entire archive of articles.
