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