Assignment task: Due to some recent changes to the local environmental air quality laws, the company's large coal-fueled smelting furnace is now operating out of compliance due to high levels of pollutants in the exhaust gases. The regulatory agency has given the company 12 months to demonstrate compliance, after which it will be fined $1,000 per day until the operations meet the regulation. The company has two alternatives. The first alternative is to install air scrubbers to reduce the output pollutant levels. The second alternative is to convert the smelting furnace from coal to natural gas. Both alternatives will meet the current regulatory requirements, but there is a slight concern that the air scrubber solution may not meet future regulatory restrictions. The executive team wants you to perform a financial performance analysis on both alternatives using several different capital budgeting methodologies. The team also is seeking guidance on non-financial considerations regarding the company's ethical and social responsibilities related to this decision.
QUESTIONS:
Q1. Define the triple bottom line and analyze its importance within an organization. Give examples of how the organization might address each of the three Ps (Planet, People, and Profit).
Q2. Illustrate how the triple bottom line can lead an organization to have an influence on positive social change. Provide at least two examples of how this can be accomplished.
As part of your discussion with the executive team on the triple bottom line and its potential impact on positive social change, you believe it is important to emphasize the need for the leaders to ask the right questions to ensure effective implementation of the triple bottom line. To help demonstrate the effectiveness of questioning as a means of leading change, propose three to five questions that the executive team members should ask their staff to prompt both a learning mindset and lead to improved collaboration within their organization. Be sure to provide your reasons for choosing these questions and substantiate your position.
Executive Summary
Provide the leadership team with an executive summary of your findings and recommendations. This will serve as the first page of your report. Be sure to address the following in your executive summary:
Clearly identify the purpose of the report.
Concisely summarize your analysis and recommendations for the organization's leaders related to the financial and non-financial considerations that could impact their stakeholders, their bottom line, and their ability to effect positive social change.