MultiPaint, Inc.

This case study describes a fictitious company, MultiPaint, Inc. (MPI), which faces a crisis when toxic contamination is discovered at its idle downtown manufacturing site. Despite a recent marketing campaign emphasizing environmental safety, the company must navigate legal, financial, and public relations challenges while evaluating five distinct options for the contaminated property.

• MultiPaint, Inc. (MPI) launched a marketing campaign themed "Painting America Safe and Clean" to differentiate its products and increase profits by addressing consumer environmental concerns.
• An internal environmental audit in September 1993 revealed that the Stain Division failed to comply with Resource Conservation and Recovery Act (RCRA) requirements for tracking acetone and toluene, resulting in a $100,000 fine.
• A site assessment for a potential $22 million sale of MPI's old waterfront property revealed that toxic chemicals had leaked from buried 55-gallon steel drums into the groundwater and Puget Sound.
• MPI is considering five alternatives for the contaminated site: performing its own cleanup and selling in three years, contracting an outside party for cleanup and selling in two years, selling the land "as is" for an estimated $1.5 million, donating the land to the City for a waterfront park, or re-opening the site to produce lead-based paint for a foreign government's naval fleet.
• The discovery of contamination has led to significant external pressures, including a news report in the Seattle Post, a warning from Haskins, Whinney, & Ross regarding the potential qualification of financial statements, and a warning from St. Helens Bank of Washington that the company's line of credit could be reduced.
• The company's internal structure is characterized by competition between the Paint, Stain, and Sales divisions, who are evaluated on different metrics and compete for a shared bonus pool.

APA

Bowen, R. M., Sefcik, S. E., & Soderstrom, N. S. (1996). MultiPaint, Inc. World Resources Institute. https://pdf.wri.org/bell/case_1-56973-214-0_full_version_english.pdf

Chicago

Bowen, Robert M., Stephan E. Sefcik, and Naomi S. Soderstrom. MultiPaint, Inc. World Resources Institute, 1996. https://pdf.wri.org/bell/case_1-56973-214-0_full_version_english.pdf.

Wikipedia

{{cite report |last1=Bowen |first1=Robert M. |last2=Sefcik |first2=Stephan E. |last3=Soderstrom |first3=Naomi S. |title=MultiPaint, Inc. |publisher=World Resources Institute |date=1996 |url=https://pdf.wri.org/bell/case_1-56973-214-0_full_version_english.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bowen1996multipaint, author = {Bowen, Robert M. and Sefcik, Stephan E. and Soderstrom, Naomi S.}, title = {{MultiPaint, Inc.}}, institution = {World Resources Institute}, year = {1996}, url = {https://pdf.wri.org/bell/case_1-56973-214-0_full_version_english.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }