Need to give all 10 short question answer by reading attached CASE STUDY need till coming thursday.

You can find similar CASE in book MANAGEMENT ACCOUNTING, chapter- sustainability- 6E ( kim langfield-smith, helen thorne and ronald hilton, page842)

Student Copy of Case Study Sydney S116 Analysis of environmental, social and economic information for decisions (NOTE: All amounts are in Australian $) Aroma Ltd is a company that packs spices. The Company is considering making some dramatic changes to its processes. Currently the company has a production facility in Kuala Lumpur, Malaysia. The CEO, Ms Kathy Michael, is concerned about several issues currently facing the company and she would like to use a sustainability approach to solve them. Issue One: The majority of spice ingredients are imported from China. The Chinese suppliers use extreme toxic chemical sprays on plantations and these sprays last a long time after spraying. Employees are not provided with any protective working gear because the Chinese suppliers can't justify spending $50,000. The toxic sprays can cause long term lung damage when breathed for extensive periods. The Suppliers (spice processors) in China pay their employees $3 per hour. The employees work long hours and don't receive any overtime pay. The CEO is considering setting up their own factory for preliminary processing of spices in China. , Teoh the Finance Manager, believes that setting up this factory is a good idea, as the setup costs will be only $1.2 million. The current cost of pre-processing spices at Kuala Lumpur is $0.33 per kilogram but will fall to $0.11 per kilogram if pre-processing is undertaken in China. The production manager, Greeja believes that the quality of the final spice products will not reduce if the pre-processing is undertaken off shore. Issue Two: Although the Kuala Lumpur plant currently meets the required environmental emissions standards, it has been prosecuted in the past and paid a fine of $1.5 million for several violations and non-compliance with regulations. An improved filtering system would cost $490,000 to purchase and $27,500 per annum to run. The finance manager Teoh, believes there would be no financial benefits in improving the air quality since the facility meets government standards and does not think that the new system should be purchased. The quality manager, Reuben, disagrees and believes that the improvements would enhance the company's reputation and reduce the discoloration of the buildings. The local newspaper has twice run stories that were critical of Aroma Ltd. A recent story suggested that Aroma Ltd. were water polluters, an assertion that the company claimed is untrue. The company has recently purchased and implemented a $1.2 million system where contaminated water is evaporated using recycling ponds and a septic system. A further $5,000 was spent to train staff in running and monitoring this system. Issue Three: The employee morale at the Kuala Lumpur plant is very low due to the previous production manager's leadership skills. This led to serious clashes with some of the production staff and 12 of these staff continue to be unhappy. The CEO has thought about offering these staff redundancies at a total cost of $285,000. Another alternative is to engage an external consultant to act as a mediator between management and staff, to see if problems can be resolved and to help improve the morale. The approximate cost of the consultant would be $43,000. The finance manager Teoh, is opposed to this as the performance indicator for staff in the company's social and environmental report is already satisfactory and is getting better every year. The money would therefore be wasted in trying to win the support of only 12 staff. Student Copy of Case Study Sydney S116 Please see attached the case study required to be analysed and thought about for test 2. You are not permitted to bring the case study into the test with you. We will provide you with another copy on the day of the test. You will be required to answer 7 questions relating to the case. Please be sure not to focus solely on the below questions but to also read the chapter and go back over your lecture notes. Think about the following concepts in relation to the case study: 1. The level of awareness the company has about corporate sustainability (both from an environmental and social perspective) 2. How can the company become more sustainably conscious? 3. Do the company stakeholders have any influence over the company and its decisions? 4. How can the company work with its stakeholders to improve corporate performance and image? 5. Look at the US EPA 5 tiers of environmental costs in conjunction to the case. 6. Has the company implemented any sustainable practices (either environmental or social)? 7. How is environmental management accounting been applied by the company? 8. Is the company maintaining physical or financial records in relation to their sustainable practices? 9. Outline the financial , environmental ,social and economic issues that the company needs to take into account? 10. Highlight any further information that company may need to gather before it can resolve these issues