Paul Martinez recently joined Toxic, Inc., as assistant controller. Toxic processes chemicals to use in fertilizers. During his first month on the job, Martinez spent most of his time getting better acquainted with those responsible for plant operations. In response to his questions as to the procedure for disposing of chemicals, the plant supervisor responded that Martinez was not involved in the disposal of waste and(would be wise to ignore the issue-f course, this just drove him to investigate the matter further.

He soon discovered that Toxic was dumping toxic waste in a nearby public landfill late at night. He also learned that several members of management appeared to be involved in arranging for this dumping.

He was unable, however, to determine whether his superior, the controller, was involved. Martinez considered three possible courses of action Pe Gane the matter with the controll&a nonymously rielenasef thoe rmatito othen lo cal newspaper, scuss the situation with an outside member of the board of directors whom he knows personally.

Chapter 1 Cost Management and Strategic Decision Making 31 Required

a. Does Martinez have an ethical responsibility to take a course of action? Why or why not? ps - (Leg AT

b. What course of action do you recommend? Why?