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Ethical Dilemma recyclers operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plant surroundings monitored for harm from lead is legendary, with long-run residual effects. Health issues include high blood pressure, kidney damage, The American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult a expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are le demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S traces of lead, this is not the case in most Mexican plants. The detrimental effects on fetuses during pregnancy, neurological problems, and arrested development in children Given the two scenarios below, what action do you take? u own an independent auto repair shop a to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to ss take your old batteries) b) You are manager of a large retailer responsible for disposal of thousands of used batteries each da
Expert Answer
a.
There are two approaches to the problem, the first is to find a new partner, have a strict contract with that partner that the partner will also dispose of the old baterries and stop dealing with the current supplier. The second option is find a dealer in Mexico or US partner who disposes it off to Mexico in the currect channel, so the disposal leg remains independent of the sourcing leg and the current partner works in the usual way.
B.
I would have several parterns, first one is to have contracts with mexican firms who would take all the used batteries from my company and then treat it and recycle it at a cheaper cost. At the same time I will have few others in US who recycle the batteries in US at a higher cost. For each one the rates will be dependent on the volume they purchase from my company. Any one which gives me more margin will be given higher priority.
