Horizon Resins has experienced serious problems as a result of attempts to manage its impacts on the environment. To illustrate the problems, consider the following events, which occurred during the past five years:
• Horizon was assessed $75 million in fines and penalties for toxic emissions. These amounts related to several separate regulatory investigations.
• Horizon received reprimands from several regulatory bodies for failing to maintain required records regarding hazardous waste.
• Horizon is currently facing a class-action lawsuit filed by former employees of a subsidiary in Mexico alleging that management failed to disclose information to employees about the toxicity of certain materials. As a consequence, the health of the former employees has been permanently harmed.
• Horizon must submit bids to obtain most of its business. Managers have casually observed that the company is successful more frequently when it bids on jobs that require handling the most toxic chemicals.
• Horizon has a very basic accounting system that tracks costs on a job order basis but is not sensitive to quality or environmental costs.
Assume that you are an employee of the consulting firm that Horizon has hired to improve the management of all environmental effects. As the financial expert on the consulting team, you are expected to make recommendations as to how the information systems should be modified to reduce environmental costs. Prepare a report discussing your recommendations for Horizon.