Note on Contingent Environmental Liabilities

Richard H.K. Vietor; Forest L. Reinhardt

Background Note | HBS Case Collection | February 1994 (Revised August 1994)

Note on Contingent Environmental Liabilities

by Richard H.K. Vietor and Forest L. Reinhardt

Abstract

Addresses contingent environmental liabilities that are the result of unforeseen environmental risks where the dollar amount of such liabilities is unknown and depends on future events. In contrast, fines for violating environmental laws are liabilities, but are not considered contingent liabilities as such fines are relatively predictable. Covers liabilities under common law doctrines (including toxic torts), the Resource Conservation and Recovery Act (RCA), and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). In particular, discusses lender liability issues as of 1993 and briefly discusses financial reporting requirements. Concludes with a discussion of strategies for managing such liabilities.

Keywords: Legal Liability; Risk Management; Natural Environment; Laws and Statutes; Pollution and Pollutants; Governance Compliance; United States;

Format: Print

23 pages

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Citation:

Vietor, Richard H.K., and Forest L. Reinhardt. "Note on Contingent Environmental Liabilities." Harvard Business School Background Note 794-098, February 1994. (Revised August 1994.)

Case | HBS Case Collection | August 2019

New Hope Liuhe: Building an Integrated Agri-Food Business

Forest L. Reinhardt, Shu Lin, Natalie Kindred and Nancy Hua Dai

In October 2018, LIU Chang (Angela), chairman of Beijing-based New Hope Liuhe (NHL), was considering the strategy of the firm. With $9 billion in sales and a presence in nearly 20 countries, NHL was China’s largest animal feed producer and a major pork and poultry producer and processor. The firm also marketed a range of food products to consumers. This case describes NHL’s entrepreneurial beginnings, growth, and recent efforts to transform from a feed producer into an integrated agri-food company with an active presence throughout the chicken, duck, and pig value chains. Considerable context is provided on the structure and evolution of these livestock industries in China, the food processing industry, and important issues such as food safety. This background is helpful in enabling students to assess NHL’s evolution in scale and scope and consider what (if any) changes should be made to the firm’s strategy in the context of this critically important market.

Keywords: Strategy; Corporate Strategy; Food; Agribusiness; Expansion; Diversification; Growth Management; Consumer Behavior; Change Management; Entrepreneurship; Organizational Structure; Organizational Change and Adaptation; Government and Politics; Animal-Based Agribusiness; Transformation; Volatility; Business Cycles; Goods and Commodities; Supply Chain; Product; Agriculture and Agribusiness Industry; Food and Beverage Industry; China; Asia;

Citation:

Reinhardt, Forest L., Shu Lin, Natalie Kindred, and Nancy Hua Dai. "New Hope Liuhe: Building an Integrated Agri-Food Business." Harvard Business School Case 720-009, August 2019. View Details

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On May 9, 2018, in an extraordinary upset, Mahathir Mohamad again became Malaysia’s Prime Minister. Najib Razak, who had headed the government since 2009, had been swept up in the 1MDB scandal—perhaps the biggest state-corruption incident in history. Although Malaysia’s growth had remained solid since the financial crisis, the scandal undermined the budget, the country’s debt position, and foreigners’ willingness to invest. What was it in the history, culture, and institutional structure of the country that had allowed 1MDB to happen. And could the 93-year-old Mahathir get the country back on track?

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Note on Contingent Environmental Liabilities

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