Vermillion Paper Company

THE CASE OF THE ENVIRONMENTAL IMPASSE*

This case is not exactly one of a leopard attempting to change its spots. Rather, it more of a case of promotional prestidigitation wherein the Vermillion Paper Company is attempting to create an illusion that it is turning over a new leaf with respect to social responsibility generally and environmental protection specifically.

The Vermillion Paper Company is likely one of the few firms around that could successfully challenge Union Carbide for the title of being the most disdainful toward protection of the physical environment. The company's past history is one of "pumping rivers full of noxious waste and clearcutting woodlands in countrysized chunks" (Case, p. 14). Like Union Carbide, Vermillion's actions and arrogant insensitivity has caused the company to be sued by "almost every jurisdiction in which it owned forests or mills," in connection with environmental degradation (Case, p. 14).

In the mid1980s, Vermillion management launched a promotional campaign to develop a new "green" image for the company. This promotional campaign was intellectually dishonest, in that the promotional messages never acknowledged any socially irresponsible actions in the past, and in that it took credit in the messages for actions which were either initiated by others, or which had been implemented by Vermillion by default some 40 years earlier. The company did, however, purchase new production equip

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re the conflict could escalate (Case, p. 22). From the company's perspectives, these positions represented the opposing ends of the decision continuum. The less militant environmentalists within Equitania also faced a dilemma. Pursuing the agreement worked out with Vermillion might represent the last best chance to save tropical rain forests, but providing public support for the company at this time might also destroy their credibility among the international environmental protection movement (Case, pp. 19, 22). This case, however, is being analyzed primarily from the company's perspective. Before the company can make a rational decision, however, it must identify both its critical factors for success, and its critical risk factor. The critical factors for success are identified in this section, while the critical risk factor is considered in the next section. The critical factors for success for the company must be considered in a broader context than the Equitanian resource development project. The critical factors for success, thus, must be those which determine to a material extent the longterm viability of the company. Once these broader factors for success are identified, decisions related to specific projects su

Category: Business - V