Johnson Manufacturing is a publicly held corporation that burns coal to power it

Question

Johnson Manufacturing is a publicly held corporation that burns coal to power its plant. Johnson’s received notice today of an immediate rule change by the EPA requiring all coal burning plants to reduce their emissions by 10%. Implementing the technology to comply with this regulation would cost Johnson’s millions of dollars and could put them out of business. The CEO knows that the current emissions standards have been proven safe and acceptable but cannot find any research supporting the new standard. TCO A. Identify and apply an ethical theory from chapter 8 of our text that you think is appropriate and explain how you would advise the CEO regarding whether or not he should comply with the new standard. (15 points) TCO B. The CEO is upset that no prior notice was given concerning this rule change. As legal counsel for the company, the CEO has asked you to determine if it is legal for the EPA (or any administrative agency) to issue an immediate rule change. Explain why or why not. (15 points) TCO F. The CEO wants to approach the EPA with an alternative way of reducing pollution. He asks you if emission charges and/or marketable discharge permits would be viable options. Explain how these could potentially reduce emissions and evaluate whether or not one or both could be used instead of the regulation the EPA passed. (15 points) TCO H. Several years ago, the Board of Directors at the request of management voted against complying with a previous EPA rule change. This decision ended up costing the company $2 million in fines and penalties. Both management and the board are considering not complying with today’s rule change. Apply the business judgment rule as it relates to the board of directors and management. Include their legal and ethical responsibilities in the assessment.

Explanation / Answer

1. Here we can applied the ethical theory of utilitarianism. We know that the utilitarianism is use to predict the consequances of an action. In the case of utilitarian, most people get the greatest benefit from the choice that are ethically. The utilitarian always looking to predict any theory he can check how much people get the benefits. So any action must give maximum benefit to most of the people in the society.

The CEO of johnson Manufacturing company must use the concept of utilitarian point of view. Any decision taken by the CEO must give up the benefis most of the people. Pollution is the greatest problem in the society. So reducing pollution from his company get benefit to entire society. When he supporting new standerds it will benefits for the Johnson manufacturing company.

2.

We know that the environmental protection agency is the rule maker of environmental issues. When EPA passed a rule to reduce the pollution every authority must follow the given change. Legally the EPA must issue notica before 30 days about the rule change. This will take time to the company to set the proposed changes.

3.

We know that the environmental protection is the primary concern of the government. So the government must operate and design the policy more efficiently. Then the government must define the system of marketable property rights. Any policy is issued by the government to protect the environment it must costless and acceptable by the company. The most common form of environment protection is the emmision tax. It will reduce the cost of emission in the society. So the Johnson manufacturing company must study the pattern and trend of the new policy and must follow them on immediate basis.

4. Here the Johnson manufaturing company must follow the economic incentive to enivironmental protection. You get entire data from the websites of US department of commerce.

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