Case Study: Dabbagh Steel

TO: Alva Alvarez, CEO

FROM:

DATE: October 17, 2020

SUBJECT: Dabbagh Steel Air Pollution Scandal

INTRODUCTION

Dabbagh Steel Company has flourished for many years and earned an unshakable loyalty from the customers. The company hires hundreds of employees and is always concerned with the staff and the public’s welfare. The company has fourteen open-hearth furnaces and four electric ones. However, the open furnaces possess technical difficulties in the control of air pollutants. Air pollution endangers the health of the company workers and the community. The company continuously places vigorous efforts in overcoming the problem and forging an environmentally friendly production system.

The media has played a significant role in spreading false information and tarnishing the company’s reputation in the pollution scandal. The media has failed to air the Dabbagh Steel Company tireless efforts and persistence in curbing air pollution in the community. The approach employed by the media makes the public question the company’s ethical motives. Reports indicate that the public only associates the company with the profits ambitions while neglecting public health regulations. The leading company problem is that it lacks a proper communication channel with the public to addresses the advances it makes in shaping a safe environment.

FACTS

Dabbagh Steel industries have spent millions of money as a preventative measure of avoiding air pollution. The exorbitant installation costs of electric furnaces require $40 to $50 million, and the company has crafted plans to replace all open-hearth furnaces. The company has recently discarded two open-hearth furnaces in the production unit and replaced them with two electric furnaces of higher capacity. Dabbagh intends to reinstate the remaining twelve open-hearth in a 20-year schedule and is flexible to implement technological changes in reducing emissions.  

Moreover, some smoke filter devices worth $ 2.5 million have been implemented in the production system, and they are performing tremendously in curbing air pollution. The smoke control devices (scrubbers) will be installed in two other electric furnaces at an extra cost of $2million. The company also conducts research and tests new methods of controlling pollution caused by the open-hearth furnaces. New overhead systems and a high-velocity centrifugal separator have been installed to reduce emission, although it has been found insufficient. Additional types of equipment such as spray chambers and baghouse have been tried to minimize the pollutant emissions.

The company’s future is also compromised by the news the media platforms spread on the public. It is tragic that despite the industry tireless efforts in dealing with pollution, the County Pollution Control Office branded Dabbagh Steel Company as the “Polluter of the Month.” The following facts hold about the negative publicity generated;

  • Complains of air pollution originates from a few people that reside around the company
  • Majority of people in the metropolitan area are unaware of the company’s concerted endeavors of curbing the pollution problem and millions of money spent on the project.
  • A small percentage believes the company deserves the title of “Polluter of the Month” and is profit-driven without looking at the public welfare.
  • The County Commissioner acknowledges the industry efforts of reducing pollution but may be pressured by the public.
  • Some people link pollution with automobile exhausts and public incinerations.

RECOMMENDATIONS

Dabbagh Steel Company always places the workers and public health as a priority. The company is committed to writing and action to help shape a clean and safe world. However, the business “silent” culture of conveying its strategies should be reformed. The industry needs more transparency with the public in the plans it regularly implements to overcome pollution. The company should consider the following to publicize its operations;

  • Hiring a media staff responsible for collecting information, distributing to the public and addressing issues as they arise.
  •  Creating Youtube channels and Google websites to familiarize the public with the company’s operations.
  •  Broadcasting reforms and strategies in television
  •  Organizing environmental conservation forums and campaigns where the public can know its intentions.
  •  Printing magazines, business newspapers, and articles to inform the public of the company’s performance.
  •  Motivating each employee to be the company’s ambassador of spreading its achievements.

Dabbagh Steel Company should adopt the culture of publicizing the environmental procedures it continuously places by coordinating its operation with the staff and public. The management should also reform the pollution control director’s position to be democratic and electoral after a specific span. To avoid complaints from neighboring residents, the company should consider giving the people incentives to facilitate relocation to other grounds. Furthermore, the company should arrange with the county government to restrict people from settling around the company.

If Dabbagh Steel Company adopts a culture of publicizing the plans it crafts, it can successfully overcome negative publicity and secure its future. People will become aware of the company’s efforts and investment in overcoming air pollution. The market will appreciate industry commitment and collaborate with its objectives. The pollution control directorial position will also be competitive, and the leader will be forced to perform accordingly to retain the seat. The staff will have the power to decide whether their welfare is adequately addressed or not. Satisfied employees always have positive things to say about their employer; therefore, meeting the expectations of the team will help build a positive image.

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