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The cases of Rongping and Luliang are far from isolated incidents. You may remember the case of Pacific Gas & Electric (PG&E), which dumped chromium-6

  • The cases of Rongping and Luliang are far from isolated incidents. You may remember the case of Pacific Gas & Electric (PG&E), which dumped chromium-6 into the water supply in Hinckley, California, as recounted in the movie Erin Brockovich. That case resulted in a $333 million award, the largest settlement ever in a direct-action lawsuit, to help the town's 2,000 residents. In contrast, when 1,721 villagers brought suit against Rongping (more plaintiffs than ever in China, to date), the court ordered the company to pay a total compensation of $105,000 for damage to the land. And the Chinese environmental group Friends of Nature filed the country's first-ever public-interest lawsuit, which shut down Rongping's plant in a village, but did not offer monetary restitution for the villagers. 
  • How might these outcomes affect the stop of unethical decisions of top management teams in the future?

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