MGT610 Business Ethics GDB 1 Solution Fall 2013

Pakistan cement, a cement manufacturing unit near a far-off residential area in Pakistan produces heavy smoke. Initially, this company could not install a standardized smoke filtering system in the chimney during construction phase of this plant. Now it has been almost a year since this company is manufacturing cement without following this environmental standard of ISO 14000.

Some of the literate people in the nearby residential area were of the view that this factory smoke is hazardous for the health of local resident. Further, they think that this company has no proper mechanism for the waste water management which pollutes their adjacent land that is used for cultivation purpose. After the failure of initial negotiation between the two parties, these local residents filed a lawsuit against this company demanding a punitive action against the company. These local residents were of the view that this company should not only standardize its smoke filtering and waste management system, but should also invest a part of its earnings for the welfare of this area, at least, with the so called greening of business strategy. In the “greening of business strategy”, industrial units have to invest heavily for plantation in their surrounding areas.


Do you think that Pakistan Cement may have serious repercussions for long term business repute or it is just a matter of demand for retributive justice? Give at least five logical arguments in support of your stance.


Cement should be a socially responsible corporate entity which feels obliged in paying back to the society, from which we derive economic gains. Providing a healthy and safe working environment for all our direct and indirect employees at all our operations and locations should be among the highest companies priorities.

Cement company’s vision should be to achieve a healthy working environment free of incidents, injuries and accidents.
Following sectors should be the area for pakistan cement companies investment as a social responsibility.

  1.      Education
  2.      Health Care
  3.      Environment
  4.      Sports
  5.      Natural Resources Conservation & Municipal Waste Management
  6.      Rehabilitation