MultiPaint, Inc.

The document describes a scenario where MultiPaint, Inc. (MPI), a company marketing itself as "environmentally friendly," discovers significant toxic contamination at its idle downtown paint plant. The case explores five strategic options for the site: self-cleanup and sale, contracting a third-party cleanup, selling the land "as is" at a discount, donating the land to the city, or re-opening the site to produce lead-based paint for an international contract. It further examines the internal conflicts arising from a previous $100,000 EPA fine for RCRA violations in the Stain Division and the external pressures from banks, auditors, and the press following news leaks about the pollution in Puget Sound.

• MultiPaint, Inc. (MPI) is facing a critical environmental crisis at its former downtown paint plant, where toxic chemicals have leaked into the groundwater and run-off into Puget Sound due to buried 55-gallon steel drums.
• The company's environmental problems contradict its current corporate marketing theme, "Painting America Safe and Clean," leading to negative press and a substantial drop in sales.
• MPI is considering five primary alternatives for the contaminated site: performing its own cleanup and selling in three years, hiring a contractor for a two-year cleanup, selling the land "as is" for approximately $1.5 million, donating the land to the City for a waterfront park, or re-opening the site to fulfill a three-year contract for lead-based marine paint.
• The company previously suffered a $100,000 fine from the EPA after a disgruntled worker reported the Stain Division's failure to comply with Resource Conservation and Recovery Act (RCRA) requirements for tracking acetone and toluene.
• External stakeholders are threatening financial and legal repercussions: the company's insurance does not cover the environmental damage, auditors may qualify the financial statements, and St. Helens Bank of Washington may reduce the line of credit or restructure a $15 million loan.

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} }