Interpersonal Skills in Organizations 5th Edition by Suzanne de Janasz,Karen Dowd,Beth Schneider

Exercise 5

In large metropolitan cities like Los Angeles, organizations are allowed to pollute up to a certain amount. Beyond that amount, the organization is fined. If they pollute less than the limit, organizations can "sell" their pollution credits to other firms who'll save money by buying the pollution credits rather than paying the fine for exceeding their own limit. Your firm has been paying $25,000 a year in fines. However, it has the option of purchasing pollution-abatement equipment for $200,000 that, if installed, will put it well within the legal limit. Should the organization invest in this equipment, continue paying fines, or…? What would you recommend and why?