#2 Sustainability

(c) Michael Kraten, All Rights Reserved.

Here is the link to the introduction of the game.
Here is the link to the first module of the game.
This is the second module of the game.
Here is the link to the third module of the game.
Here is the link to the fourth module of the game.

Purpose of Conversation: Your group meets with Jacques Plui, the Director of the Audit Committee of the Board of Directors at WOW. Jacques comes from a wealthy French family that is famous for supporting enviromental protection projects. Much of Jacques’ personal family wealth is invested in WOW stock; he is often torn between his commitment to the environment and his need to protect his family fortune.

New Information: The Board of Directors is concerned about the general public’s perception of the firm’s management of the environmental risk regarding the blue frog species. The Board asks for a recommendation regarding the possibility of relocating or keeping in place while protecting the endangered species.

Choice a: Do nothing and proceed with project.
There is a 25% probability that the blue frog will become extinct, resulting in a public relations nightmare that would bankrupt the company and cause $1 billion in shareholder losses.

Choice b: Maintain the project’s existing scope and relocate the blue frog.
This choice would cost the company $10 million. There would still be a 10% probability of species extinction.

Choice c: Reduce the project scope to protect the blue frog.
This choice would also cost the company $10 million. In addition, the value of the project would decline by $50 million, but the probability of species extinction would decline to 2%.

Choice d: Shut down the project.