Make a Decision: Analyze CSR initiatives at Gree Manufacturing (from Chapter 14)

Obj. 5 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.