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FZP Pharmaceutical Company has a published mission statement which refers to its commitment to act in a socially responsible manner. At a recent Board meeting the ChiefExecutive presented a number of proposals outlining what she thinks the company should do tolive up to its stated mission, including the recommendation that the company should have aneco-balance sheet which includes financial data on environmental costs. She has commentedthat at present the company is simply complying with legislation.The Chief Executive's proposals include the introduction of a number of social responsibilityspecific objectives linked to reducing carbon emissions in production processes, recycling andwaste disposal. These actions will require investment in clean production technologies. She alsowants to support the local economy through making financial donations and seconding staff tohelp local charities.Not all members of the Board support the Chief Executive's proposal. In particular, she is facingstrong opposition from the Finance Director. He is concerned about the investment required to implement the proposals and has suggested they could have a negative impact on the company's financial performance and ultimately shareholder value.
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