To start let me give you guys an example of a chemical plant
Your company has recently announced that all plants worldwide will be built to the strictest safety and enviromnetal standards. if something is required in the USA, then it should also be implemented in developing countries as well, even though their standard are not as high. ur company is building a chemical plant in partnership with a Pakistani company. However, this new company policy is announced at the start of the construction phase. If the policy is followed a major redesign will be required to add safety and enviromental equipment to prevent suspected long term, chronic effects. This will increase capital spending by 20% resulting in reducing the rate of return from a healthy 18% down to an unacceptable 9%. Your company has a 51% controlling interest and your pakistan partner is prepared to follow local code. The pakistani government has located this plant in a poor section of the country to help employment and industrialization.
What do you do?