Explain responsibility and immediately begin clean-up, Operation Management

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MKD Transportation owns and operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize. If true, some of the world's most beautiful coral reefs could be in danger. On the other hand, the captain of the ship in question has not notified the company of any problem, and clean-up could be very costly. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin clean-up. 1. Will MKD be able to green wash their company after this? Explain. 2. If MKD adopts an obstructionist stance, how will the company respond to this report?


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