Stockholder's Position

Check Point: Presentation of the Stakeholders’ Positions

Dear board of directors, the main issue for us investors in the Kardell Paper Company is how we will fair with our return on investment. However, us investors believe that the companies we invest in should exhibit good ethical behavior. I know the company is properly observing all existing regulations on the emission levels but it concerns us investors that there may be chemicals released into the water supply by the company. We know there is no hard evidence that there are any humans or environmental effects from the chemicals released. There have been test taken that show high levels of chemicals are being released into the water supply.
The doctors from Riverside have expressed concerns about the usually high rate of respiratory disorders and miscarriages within the community. There has been data presented to the company suggesting that there is a possible link between the health concerns of Riverside and the chemicals being released by the plant. There has been a proposal presented to the company that could stop chemicals from being released. The proposed plan would allow the plant to continue to operate while the chemical waste is recycled. The recycled chemical waste would then be sold to chemical producers.
This proposed plan has its positives and negatives for us investors. A positive is that for the long term the new process will be cost effective. A negative is that the new plan will cost the company $70 million and the plant would have to operate at a lower capacity levels for a year. The plant could also have to close for an additional year to make the proper changes. This would affect the many employees of the plant and there are no replacement jobs in the area. But if the plant continues to operate as it does, it could have a negative effect on the environment and the people of the Riverside area. This situation has put us investors in a difficult position. On one hand, the purpose of...