no mental cost management) Classic Plastics 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:

Classic was assessed $75 million in fines and penalties for toxic emis¬ sions. These amounts related to several separate regulatory investigations.
Classic received reprimands from several regulatory bodies for failing to maintain required records regarding hazardous waste.
Classic is currently facing a class-action lawsuit filed by former employ¬ ees of a subsidiary in Mexico alleging that management failed to dis¬ close information to employees about the toxicity of certain materials. As a consequence, the health of the former employees has been perma¬ nently harmed.
Classic 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.
Classic has a very basic accounting system that tracks costs on a job or¬ der basis but is not sensitive to quality or environmental costs.
Assume that you are an employee of the consulting firm that Classic has hired to improve 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 environ¬ mental costs. Prepare a report discussing your recommendations for Classic. LO.1