Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:

The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.

a. Identify which CSR activities Green Manufacturing should implement.

b. For each CSR activity you recommend, identify an appropriate related performance metric.

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Initial Added Cost $ 5,000 Variable Savings Variable Cost $0.10 per Ib. of recycled material $0.15 per Ib. of recycled material Recycle and reuse production materials Add solar panels as a source of power Replace assembly room light fixtures with natural light $1,000 per year $33,000 per year 700,000 $180 per month $220 per month 120,000