Group 1

CASE 1

The Asarco Company

I. Introduction

The Asarco Company was foundry for copper in Tacoma, Washington.

People used to talk of the “Tacoma aroma” when referring to the foul smell
emitted by Asarco’s giant chimneys. The company’s activities however, did
not just produce bad smell. Worse, they also released a notably high
amount of arsenic.

In the ‘70s the company had invested more than $40million in an attempt
to reduce the arsenic emission. But in 1983, The agency for environmental
protection told the company that the law demanded that they reduce the
emission of arsenic by at the very least, 25%. Arsenic is carcinogenic. The
agency estimated the arsenic emissions of the company led to four lung
cancer cases a year. The new restriction was aimed at reducing this figure of
just one case yearly.

Statement of the Problem

1. What is the ethical issue in the case?

- The ethical issue in this case is the environmental and health
problem that the company is contributing. Every human being has
the right to livable environment. It is significant that arsenic
emissions required to be reduced because they are causing people
to get diseases that are not appropriate.

2. If you are the president of Asarco Company, what would you do and
why?
- As President, considering the environmental responsibilities of a
company is important as the profit utilization. It is considered as
valuable investment and creates business competitive advantages
 and sustainability. If I were the President of Asarco Company,
providing not just short-term solution but also long term should be
done immediately. As soon as possible, the arsenic emission should
be lessened. Take fast actions to also lessen the inappropriate
disease that it can cause. It would be my fault because I am the
president. Of course, the possibility that it would cause a fortune for
everyone.

II. Background of the Study- SWOT

Strenght Weakness
▪ They have enough ▪ Releases unpleasant smell of
resources to reduce the the product and have a high
arsenic emission. notable smell of arsenic
which is poisonous.
▪ Established strong capital
base and image for their
business to keep going.
▪ One of the dominant
players in the market.
▪ Strong distribution network
and wealth of experience in
the field.
Opportunity Threat
▪ High demand of copper ▪ Changing customer behavior
product. towards the business.
▪ Innovation with the ▪ Disruptive machines
machines or chimneys the
-some emerging technology for
use. alternative use may not fit with the
image that Asarco has built for
itself.
▪ High cost of technology
investment.
▪ Government Environmental,
product, and company laws.
III. Alternative Courses of Action (ACA)

1. Reduction of arsenic smell

Advantage: reduce the risk it may cause to our health.
Disadvantage: Expensive

2. Closing of the Smelter

Advantage: There will be no people suffer on illness.
Disadvantage: Loss profit and a lot of people will be
unemployed.

3. Advantage: to lessen the bad smell and arsenic emission from

their machineries.
Disadvantage: could cause a small loss in profit due to limit of
activities.
IV. Proposed Solution
The only economically feasible solution was to relocate the nearby
residents and use the leftover land for other purposes. The next step
was to pursue long-term effects of low lead exposure in children.
The children were used as pawns, while each interest group
conducted their studies.
V. Recommendations
The business should not just focus on maximization of profits or the
profitability of it but to also improve and consider outside and
environmental factors. They can also create a plan that includes the
sustainability of the people around their factories and be more
environmentally friendly. Furthermore, they should be strict in
following the rules and laws governing them and try to limit their
production to lessen the arsenic emission from the chimneys.