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Hondo-notes - FINANCE MINICASE MGMT 05 TEACHING NOTES...

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FINANCE MINICASE: MGMT - 05 BUSINESS ETHICS PROGRAM TEACHING NOTES 1992 Arthur Andersen & Co, SC. All rights reserved. Page 1 of 1 Something’s Rotten in Hondo Teaching Notes What Are the Relevant Facts? 1. George has a family. 2. George is a manager of a small plant. 3. George’s plant smokestack emissions were consistently above EPA guidelines. 4. George was informed by his boss that the EPA would levy fines pertaining to the emissions problem. 5. George’s boss stated that no money was available and that other plants in worse condition were able to pass the emissions standards. 6. George found out that the other plants were scheduling their heavy emissions work at night when the EPA officials were not around. 7. George’s boss provided two options: eliminate the fines by correcting the problem with no additional money or relocate the plant in Mexico. 8. The relocation of the plant would devastate the town of Hondo and would continue to contaminate the air on the U.S. side.
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