AWC Inc

Alex Macdonald must take certain issues critically if at all he desires to have his business running as par his expectations. He has to understand that it is the firm’s corporate responsibility not to pollute the environment of its surrounding as this may cause wrangles with the surrounding community in case their right to fresh air is infringed. Macdonald should also understand that in order for his business to continue with its operation it has to abide by the Government rules and regulations to avoid complete shut down. He is also subjected to understand that ignoring the environmental policies put forth by the Government will not only ruin the business but also subject his employees to a major threat of contracting preventable diseases. He also has to start thinking about sources for financing the project at hand since the balance sheet displays figures which cannot assist in financing the ventilation project. The shareholders are the company employees (this is because at one point MacDonald admits that when he was forced to lay off one of his employees, he actually felt like he had fired his own mother) and Mac Donald’s family while the stakeholders include the community surrounding the premises, the customers and the Government. The neighboring community have benefited since the amount to be emitted out of the factory after the measures are put in place will be minimal  since there will be minimal emissions to the environment. The customers have also benefitted especially when great competition has led to the production of high quality products.

I feel that the Government has also benefitted in its quest of protecting its citizens from pollution emitted by companies in the manufacturing industry. Employees of the company have been harmed in the sense that most of them have been forced by the circumstance to go jobless.

The potential consequences of ignoring the government policy would lead to substantial loss of retained profits as most of the money will be used to pay fines as stipulated by the law In case the company decides to implement the policy then it will have to source for funds externally which will make it enter into an agreement of either paying up bank loans or loss part of its ownership through equity funding.