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Classify the following environmental activities as prevention costs, detection costs, internal failure costs, or external failure costs. For external failure costs, classify the costs as

Classify the following environmental activities as prevention costs, detection costs, internal failure costs, or external failure costs. For external failure costs, classify the costs as societal or private. Also, label those activities that are compatible with sustainable development (SD).

1. A company takes actions to reduce the amount of material in its packages.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

2. After the activated carbon's useful life, a soft-drink producer returns this material used for purifying water for its beverages to the supplier. The supplier reactivates the carbon for a second use in nonfood applications. As a consequence, many tons of material are prevented from entering landfills.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

3. An evaporator system is installed to treat wastewater and collect usable solids for other uses.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

4. The inks used to print snack packages (for chips) contain heavy metals.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

5. Processes are inspected to ensure compliance with environmental standards.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

6. Delivery boxes are used five times and then recycled. This prevents 112 million pounds of cardboard from entering landfills and saves 2 million trees per year.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

7. Scrubber equipment is installed to ensure that air emissions are less than the level permitted by law.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

8. Local residents are incurring medical costs from illnesses caused by air pollution from automobile exhaust pollution.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

9. As part of implementing an environmental perspective for the Balanced Scorecard, environmental performance measures are developed.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

10. Because of liquid and solid residues being discharged into a local lake, the lake is no longer fit for swimming, fishing, and other recreational activities.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

11. To reduce energy consumption, magnetic ballasts are replaced with electronic ballasts, and more efficient light bulbs and lighting sensors are installed. As a result, 2.3 million kilowatt-hours of electricity are saved per year.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

12. Due to a legal settlement, a chemicals company must spend $20,000,000 to clean up contaminated soil.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

13. A soft-drink company uses the following practice: In all bottling plants, packages damaged during filling are collected and recycled (glass, plastic, and aluminum).

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

14. Products are inspected to ensure that the gaseous emissions produced during operation follow legal and company guidelines.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

15. Operating pollution control equipment incurs costs.

DetectionDetection (SD)External failure (private)External failure (societal)Internal failureInternal failure (SD)PreventionPrevention (SD)

16. An internal audit is conducted to verify that environmental policies are being followed.

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