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  • October 1992 (Revised August 1994)
  • Case
  • HBS Case Collection

Allied-Signal: Managing the Hazardous Waste Liability Risk

By: Richard H.K. Vietor and Edward Prewitt
  • Format:Print
  • | Pages:26
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Abstract

Allied-Signal, Inc., one of the world's oldest chemical companies and today a diversified conglomerate, is liable for clean-up costs of old hazardous waste sites. These costs are substantial: reserves grew to nearly $500 million in 1991. Attempting to avoid further set-asides, and anticipating U.S.-style liability laws in Europe, environmental managers undertake a review of the company's three-part environmental control policy. With extensive programs for disposal-site inspection, auditing for compliance, and hazardous waste reduction, the managers try to optimize costs and liabilities by balancing waste disposal and reduction. The case recounts the formation of the control policy in response to legislation such as RCTA, Superfund, and the Toxics Release Inventory. Examines in detail the implementation of the three hazardous waste programs, analyzing the experiences of two plants. Exhibits include internal control documentation.

Keywords

Wastes and Waste Processing; Environmental Sustainability; Programs; Cost Management; Policy; Government Legislation; Factories, Labs, and Plants; Governance Compliance; Legal Liability; Chemical Industry; United States; Europe

Citation

Vietor, Richard H.K., and Edward Prewitt. "Allied-Signal: Managing the Hazardous Waste Liability Risk." Harvard Business School Case 793-044, October 1992. (Revised August 1994.)
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About The Author

Richard H.K. Vietor

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Related Work

    • January 1995
    • Faculty Research

    Allied-Signal: Managing the Hazardous Waste Liability Risk (TN)

    By: Richard H.K. Vietor
Related Work
  • Allied-Signal: Managing the Hazardous Waste Liability Risk (TN) By: Richard H.K. Vietor
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