Fire on the Mountain: An Application of the Pyramid of Corporate Social Responsibility

Stephanie Owings, Douglas Lyon
March 8, 2022
Ethics & Social Justice, Strategy & General Management
9 pages
financial analysis, ethics, levels of social responsibility
Student Price: 
$4.00 (€3.73)
Average rating: 

The 416 Fire burned over 50,000 acres near Durango, Colorado in the summer of 2018.  The fire caused evacuations.  Employees were furloughed.  Tourists had taken their dollars and gone elsewhere.  Some said the fire started near the train tracks right after the Durango & Silverton Narrow Gauge Railroad, the historic coal-fired train, passed by.  Al Harper, owner of the railroad, had to determine the future best course for the train and for the town he loves.  His choices included continuing with the historic coal-fired engines, choosing diesel engines, or choosing oil-based engines.

Learning Outcomes: 

1. Identify the issues and challenges raised in the case that were facing D&SNGR in choosing to operate the train in a socially responsible way.

2. Analyze the financial decision facing the D&SNGR using expected value techniques.

3. Analyze the interrelationships between the choices facing Al Harper, CEO of D&SNG.

4. Evaluate the financial and other tradeoffs using the pyramid of corporate social responsibility.

5. Develop recommendations for Al Harper, CEO of D&SNGR.