This case is aboutÂ ORGANIZATIONAL STRUCTURE
PUBLICATION DATE: June 14, 2004
Environmental Remediation – A Problem to Manage Globally or Locally?Â Case Solution
The case sets out a dilemma faced within International Paper (IP) in deciding how best to manage a specific set of external responsibilities and accountability – remediation to repair past examples of environmental pollution. Remediation issues are resolved over long time-frames because of their technical and regulatory complexity. The inherent case dilemma is how best to manage corporate social responsibilities where both the variety of the future costs and accountability are uncertain.
In this instance, the number of remediation problems confronted, the costs of remediation and the impact of future regulatory inflation are unpredictable. Hence through this instance students see the underlying reasons for conflicts of interests between the various stakeholders and the more extensive external and internal context within which companies must handle their corporate social and environmental responsibilities.