Allied Signal
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Case Analysis: Allied Signal
The federal government laws in the 1970's affected how Allied Signal conducted their business. The public was not tolerating hazardous waste and becoming fearful for their health. This lead health authorities to be stricter on safety standards, waste disposal and exposure. Allied Signal experienced this first hand with a plant in Hopewell, Virginia. This facility produced Kepone for Allied under contract. Although this was only a minor source of profit for Allied, inspections of the facility lead to more than $200 million in fines, settlements, and legal fees. I believe this experience caused Allied to reconsider its business partners and how it handles their existing manufacturing facilities. When the Clean Air Act started in 1970, Allied had Ed Callahan establish a corporate Environment Sciences department. After the Kepone incident, the Environment Services department was expanded and environmental personnel were employed at each plant. The wave of laws in the 1970's required compliance and pollution control expenditures...