Please describe the utilitarian implication of situation

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An industrial firm is confronted with the dilemma of whether it should include-on its balance sheet-a very costly liability for the clean-up of a hazardous waste pool that has accumulated over the past several years as a direct by-product of its operations. The company agrees that the cost of cleaning up the hazardous waste pool is a cost of doing business.

However, including this massive financial liability in the company's financial statements now will have the effect of immediately decreasing the total value of the company. In turn, because the company's worth will be deflated, the company's current stockholders will be harmed financially because the company will have lost much of its current value.

Please describe the utilitarian implication of this situation. What should the company do?

What would virtue ethics require be done?

Reference no: EM132341570

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