Green and Sutainable Business
Imagine a local company produces and sells chainsaws that come with a 2-year warranty. There are metal parts on the production line that must be painted before the chainsaws are assembled. The currently used paint gun transfers only 75% of the paint to the product, with the remaining 25% lost as air emissions. This exceeds the level of air emissions allowed under government regulations. The plant has the option of:
o Purchasing a new paint gun that costs five times more than the existing paint gun but has a paint transfer efficiency rate of up to 95%.
o Using a different type of paint that produces negligible amounts of air emissions but is known to chip and flake after two or three years.
o Making no changes to production but paying monthly fines related to the amount of air emissions.
What are the short-term costs and benefits of each option? Consider financial, ethical, practical, and legal perspectives. What is the best choice of the options?